Long Beach’s proposed $4 billion 2026–27 budget aims to close a $58 million shortfall by cutting more than 260 filled jobs and eliminating over 200 vacant positions — roughly 4% of the city workforce. The plan retires one fire engine, trims police vacancies and slashes Health Department staffing after an $11 million funding loss, while preserving targeted crime-fighting investments. Mayor Rex Richardson has proposed restoring about 70 positions using Measure ER revenue and other savings; the plan goes to City Council hearings with a final vote expected in late September.
Long Beach Proposes Hundreds Of Job Cuts And Service Reductions To Close $58M Deficit
Collage of an aerial view of a city with a harbor, and two mayors speaking at different podiums.
Long Beach city officials unveiled a proposed $4 billion budget for 2026–27 that aims to close a $58 million shortfall through deep staffing and service reductions. City Manager Tom Modica’s plan would cut more than 260 filled positions and eliminate over 200 vacant roles — about 4% of the city’s nearly 6,000 employees — marking the first proposed general fund layoffs in nearly six years.
City Manager Tom Modica. MediaNews Group via Getty Images
What’s Proposed
The recommendation responds to rising labor and legal costs, weaker tax revenues and the loss of federal grants. To date, the city has tapped $27 million in reserves, leaving $33.6 million available, while another $27.3 million deficit is projected for the following year.
Hourly parking rates would also rise from $2 to $3. Getty Images
Public Safety Changes
Fire: The plan would retire Fire Engine 14, a move the city estimates will save $3.8 million after finding the unit responds to the fewest fire calls and that roughly 87% of its dispatches are medical emergencies. Fire Engine 17 would be permanently staffed under the proposal.
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Police: The proposal would eliminate 17 vacant patrol slots, cut 18 investigator positions and reduce overtime spending by about $2.68 million. Officials say sworn officers and firefighters whose positions are removed would be reassigned where possible. The budget preserves funding for a 12-officer High Crime Focus Team, expands the real-time crime center and upgrades the police crime lab. A $6.5 million police helicopter is included, funded through forfeited assets and a law enforcement grant.
Aerial view of the Belmont Veterans Memorial Pier in Long Beach, California. Getty Images/iStockphoto
Health, Homelessness And Community Services
The Health Department would lose 79 positions after an $11 million reduction in outside funding. Cuts include eight jobs in the homelessness bureau, reductions to weekend outreach and the medical shuttle, scaled-back workforce programs and the elimination of one of two mobile homeless outreach teams. Motel voucher shelter rooms would be reduced from 40 to 15, and rapid rehousing assistance would serve 45 fewer households, though all municipal shelter beds would remain open.
Long Beach Mayor Rex Richardson. Anadolu via Getty Images
Community services would also be affected: five library branches would cut hours to five days a week, teen programs at Chavez Park would be eliminated, summer swim lessons at Jordan and Millikan high schools would end, and the after-school WRAP program would be cut. The plan also raises hourly parking rates from $2 to $3.
Offsets, Alternatives And Next Steps
Despite reductions, the budget keeps or expands select public safety investments while seeking savings elsewhere. Mayor Rex Richardson has proposed alternatives to restore about 70 positions and protect certain police, fire, youth and homelessness services. He suggests using Measure ER revenue, a revised Port of Long Beach fire services agreement and savings from not holding a November general election to help close the gap and add health jobs.
The proposal will go to the City Council for public hearings, with a final vote expected in late September. City leaders say Long Beach remains on track for a structural surplus by 2028 if the plan and proposed offsets are implemented.
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