The Berkeley city council has approved a two-year budget plan aimed at addressing a $30 million deficit, but the decisions have not come without controversy. The budget, approved on a Tuesday night includes cuts to various services and staff layoffs, though some positions in the fire department were preserved. The plan hinges on voters approving a 0.5% sales tax increase in November, which would generate $9 million per year in new funding.
The budget cuts will significantly impact programs serving homeless residents and community health initiatives. The city plans to discontinue a winter homeless shelter and shut down a crisis unit that responds to mental health emergencies. Funding for grants to local arts organizations will also be cut by 10%. Mayor Adena Ishii acknowledged the difficulty of these decisions, stating, “These are not easy decisions. None of us got elected so we could cut positions—it’s incredibly painful.”
Firefighters and Unions React to Budget Decisions
The Berkeley Fire Fighters Association mounted a campaign against proposed cuts to the fire department, which included five firefighters, three paramedics, and a fire inspector. The union argued that the cuts would exacerbate staff shortages and increase reliance on overtime. Stephen Gilman vice president of the International Association of Fire Fighters district that includes Berkeley, told the council that voters trusted the city to match their commitment with action.
In a late budget move, the council directed $1.3 million from a separate pool of affordable housing funding to a program that helps local land trusts buy apartment buildings and convert them into dedicated below-market-rate homes. This decision was applauded by affordable housing advocates but criticized by some council members who warned it could breach voters’ trust.
Controversial Funding Allocations
The council also signed off on several other funding allocations, including $1.3 million for a program to ban private cars from Telegraph Avenue, turning those four blocks into a plaza-style street dedicated to pedestrians and buses. Additionally, $200,000 was allocated to fund the gun violence prevention program Live Free, and $236,000 to save the job of a business outreach worker in the city’s Office of Economic Development.
The most controversial move was the call to direct $1.3 million to the housing acquisition program known as Small Sites from Berkeley’s Housing Trust Fund. A local land trust wants to use that money, plus another $2.5 million the council budgeted for the program in prior years, to buy a 23-unit apartment complex on Sacramento Street. Supporters argue the strategy helps prevent displacement and ensure stable homes amid the Bay Area’s housing crisis.
Debate Over Housing Strategy
Critics of the Small Sites program argue that Berkeley’s affordable housing money would be better spent building new below-market-rate developments, which typically receive far more funding from the state and federal government. Councilmembers Rashi KesarwaniBrent Blackaby and Terry Taplin proposed redirecting both the $1.3 million in new Small Sites funding and the $2.5 million previously pledged for the program to new developments that need money to break ground.
Other council members argued the city should fund both new construction and acquisition programs as part of its housing strategy. Councilmember Igor Tregub stated, “Berkeley’s naturally occurring affordable housing is disappearing faster than we are replacing it. Our goal must be to use every effective tool to keep Berkeley neighbors housed and preserve the diverse community we all value.”
A vote to adopt a modified version of the proposal from Kesarwani, Blackaby, and Taplin failed, with those three members casting the only votes in favor. The approved budget now sets Berkeley on a more stable financial path, though the decisions have sparked mixed reactions from unions and advocates.
