City of Long Beach Unveils Proposed Fiscal Year 2026 Budget
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Above: During a press conference held July 24, 2025, City Manager Tom Modica (left) presented the City's Proposed FY 26 Budget. Mayor Rex Richardson (right) also presented his Mayoral Recommendations. They were joined by Budget Manager Rebecca Bernstorff (center) from the City's Financial Management Department.

Long Beach, CA – Today, July 24, 2025, the City of Long Beach unveiled its Proposed Fiscal Year 2026 (FY 26) Budget. The $3.7 billion Proposed FY 26 Budget includes the City Manager's Proposed Budget, the Mayor's Recommendations to the City Council, and the Proposed FY 26 Capital Improvement Plan (CIP). The Proposed Budget takes into consideration priorities from the Long Beach City Council and focuses on key areas of investment identified in the Long Beach Strategic Vision 2030,  as well as community feedback from residents received during the budget development process earlier this year, among other critical priorities.

"In the face of economic uncertainty seen all across the state and nation, our commitment to providing quality core services remains unwavering," said Mayor Rex Richardson. "The Proposed FY 26 Budget is rooted in stability, investing in economic growth and uplifting our most vulnerable neighbors. By taking careful, measured steps to avoid major reductions while meeting the everyday needs of our diverse community, we are looking ahead to a strong financial future and in turn moving Long Beach forward."

With many California cities struggling with financial challenges and broader economic uncertainty, the Proposed FY 26 Budget upholds the City's commitment to the wellbeing of the community by maintaining core services without major reductions. Since FY 20, the City has successfully navigated financial challenges, using one-time funds made available through the Long Beach Recovery Act to stabilize its fiscal position. These sources are now exhausted and, while the City has worked diligently to avoid increasing the structural shortfall, it is facing a cumulative five-year $60.5 million General Fund shortfall.

Although the City remains confident that future revenues from initiatives like Grow Long Beach and the 2028 Olympic and Paralympic Games will materialize, the Proposed FY 26 Budget reflects difficult but necessary decisions that must be made today to maintain essential services and financial stability in the future, including revenue generating fee increases, focusing on the preservation of current programs rather than introducing new initiatives, and sustaining core services that residents rely on every day.  The passage of Measure LB by voters helped significantly in avoiding large scale reductions this year.

Long Beach is a full-service city organization and prides itself on providing a variety of resources and services to the community, including the provision and improvement of affordable housing and addressing homelessness; support for economic development and business assistance; the overall continuum of public safety and emergency medical response; maintenance of safe, clean and accessible parks and facilities; and support for and advancements in infrastructure and livability improvements. The Proposed FY 26 Budget maintains these services and takes action to address the City's most urgent one-time and structural needs for select service priority areas.

"Long Beach has always risen to meet the moment, and this year is no different. With economic uncertainty affecting communities across the country, we have crafted a proposal that is both careful and compassionate," said City Manager Tom Modica. "It protects the everyday services our residents rely on, avoids major reductions and ensures Long Beach stays strong and adaptable. I want to thank our Budget Office and City departments, as well as our community, for their continued collaboration and dedication in seeing this proposal through. This budget takes steps to reduce our structural deficit, once predicted to be $30 million this year and now reduced to $16.9 million."

Because one-time funds were minimally available, the FY 26 budget required careful, strategic decision making. Initiatives that departments requested were offset within either reductions where it made sense, or proposed increases to revenue sources.

Proposed FY 26 Budget Highlights
Select highlights are listed below with an even more comprehensive and detailed list, including alignment with Strategic Vision 2030 themes, in the FY 26 Proposed Budget Book. The Community Budget Book, a condensed version of the proposed budget, is available online at longbeach.gov/fy26, with Spanish, Khmer and Tagalog to be made available by Aug. 5.
  • To further protect housing and strengthen rental housing enforcement, new positions have been added in the Community Development Department, including a Civil Engineering Associate and a Code Enforcement Officer. Updated fee structures—such as an increase in planning and building fees and adjustments to the Multi-Family Housing Inspection and Short-Term Rental Programs—will help align revenues with service delivery costs and ensure program sustainability.
  • Many priorities meant to support homeless services, housing production, housing preservation and homelessness prevention are included as part of the FY 26 budget with recent funding received from Los Angeles County Measure A, Local Solutions Fund.
  • Public safety and emergency response are being strengthened through strategic investments in both personnel and equipment. The FY 26 budget is proposing continuing Rescue 2 Peak Load Ambulance Unit operations within the Fire Department by structurally adding paramedics and updated critical medical equipment, which are supported by increased ambulance transport revenue from revised rates and enhanced reimbursements.
  • The Police Department is responding to shifting public safety priorities by reallocating and consolidating staff to form a new Societal Crimes Section and adding eight civilian Community Services Assistants to improve response times. The City is also investing in helicopter upgrades to replace the camera systems.
  • The Economic Development Department is proposing to be renamed the Economic Development and Opportunity Department, reflecting a stronger focus on inclusive growth. Funding in the amount of $1 million is proposed to support the Small Business Rebound Initiative for programs such as the Inclusive Business Navigators, the Legacy Business Program, Level Up LB: Extreme Makeover and Grant Program, Safe and Secure Grants, the Visual Improvement Program (VIP), the Grow America/Grow Long Beach Fund and the Vacancy to Vibrancy Program. Additionally, the City is addressing operational cost increases at the Long Beach Convention Center through targeted adjustments and programming changes. In FY 26, the City is also focusing on releasing prior commitments to increase programming and revenue opportunities.
  • The solid waste management programs (Refuse, Organics and Recycling) are moving from the Public Works Department to the newly created Energy and Environmental Services Department to enhance the coordination of solid waste management programs. Additionally, this shift will provide more focus on transportation, traffic and infrastructure in Public Works. This transfer also streamlines operations by aligning the City's new organics collection program with the planned modification of the Southeast Resource Recovery Facility (SERRF) into an anaerobic digestion facility capable of processing the City's source separated organics. With a more targeted mission and dedicated leadership, both departments can optimize their resources, enhance service delivery and proactively address the evolving needs of the City.
  • Infrastructure modernization and reimagining public space remain central to the City's work. The Public Works Department is undergoing a strategic reorganization to establish a Transportation Services Bureau, streamlining street sweeping, parking control, mobility and customer relations under one umbrella. Investments include new equipment like an electric vehicle bike lane sweeper to enhance maintenance in key corridors.
  • To address ongoing recruitment and retention challenges for part-time School Guards, the City proposes converting 9 full-time equivalent (FTE) positions (21 part-time School Guard positions) into 6 full-time Parking Control Checkers (PCCs) as a part of the School and Neighborhood Safety Pilot Program. This transition allows for a more stable, full-time model with benefits and career growth, making the roles more attractive to candidates. The PCCs will provide expanded enforcement capabilities, using downtime between school shifts to improve parking compliance, reduce traffic congestion and enhance neighborhood safety.
  • The City is increasing capacity for capital project delivery and lighting improvements, with staff enhancements to better oversee the implementation of street lighting and CIP projects.
  • With the expiration of Long Beach Recovery Act (LBRA) funding, the City stands to lose over $1.1 million annually that supported the Clean Team's expanded services, including encampment cleanups, pressure washing and citywide beautification. To preserve these efforts, the Public Works Department proposes structurally funding the Clean Team by adding eight Maintenance Assistants to the existing two General Fund positions, along with a $300,000 budget for contracted services. These costs would be fully offset by a proposed $5 increase in parking citations, creating a sustainable revenue source to continue the enhanced cleaning services residents have come to expect and depend on, particularly in areas not covered by the Refuse Fund.
  • Investments in sustainability and environmental resilience are advancing key climate goals. Proposed funding will support the update of the City's Long Beach Climate Action Plan, a new Energy Resiliency Feasibility Study, and planting 1,000 trees in high-heat areas and strengthening green infrastructure throughout Long Beach.
  • Within Parks, Recreation and Marine, the Free-Standing Restroom Team is also being brought in-house, adding dedicated staff to directly manage restroom cleanliness and operations.
  • Allocating structural funding for operational costs and one-time funding for facility improvements of Long Beach Animal Care Services, to ensure continuity of animal care services and the humane treatment of animals, should the termination of the Lease and Leaseback agreement with spcaLA occur.
  • With the Financial Management Department housing the Mobile Food Facility Program, funding is proposed for adding inspector staff, equipment and support functions to better regulate and support the growing number of mobile food vendors across the city.
  • The FY 26 Budget includes preventing the loss of the Community Crisis Response Team, violence healing services, and public health enforcement through the Complaint Response Team to continue the enforcement of the Sidewalk Vendor program, all of which were previously funded by LBRA.
  • With Measure US revenues declining, the City is focused on sustaining existing health and youth programs while scaling back some one-time grant funding, including aging services by 0.5 FTE. This includes continued support for a Youth Festival and community-based grant programs.
  • Cultural equity is supported through the establishment of a Cultural Affairs Division within the Library, Arts and Culture Department.
  • The Proposed Budget prevents the loss of six-day service at Bay Shore, Burnett and Bret Harte Neighborhood Libraries, all of which were funded by one-time dollars that were set to expire.
  • As Long Beach prepares for global opportunities ahead, particularly the 2028 Olympic and Paralympic Games, the City is investing in strategic civic and international engagement. This includes the renaming and expansion of the Office of Global Engagement and Protocols, which will lead protocol efforts and coordinate volunteer participation. Funding is also being proposed to continue to support community celebrations and cultural events such as the Long Beach Pride Parade, Long Beach Walls, Art Renzei Festival and the Naples Island Holiday Lights Program—reinforcing Long Beach's commitment to cultural vibrancy and civic pride.
  • Internal department reorganizations, mergers and position transfers are essential for improving operational efficiency, breaking down silos and aligning staff and resources with the City's evolving service priorities.
  • 2026 election planning is underway, with funds being proposed for uncontrollable costs associated with the election, ballot measure support and campaign matching.
  • In anticipation of FY 25 year-end surplus of Tidelands Operating Fund Group, the City is proposing to prioritize unfunded projects and initiatives including: $1.5 million set aside to proactively cover the fund balance deficit anticipated for FY 26; $2 million for Naples Seawalls tiebacks, including Sorrento Trail and permitting requirements; $2 million for start-up investment for efforts to activate revenue-generating assets such as the return of Sir Winston within the Queen Mary; and remaining funding will be for the solution to finance the Belmont Beach and Aquatics Center, which will be brought to the City Council this year.
  • As part of the City's ongoing commitment to inclusive economic development and neighborhood revitalization, the Proposed Budget includes targeted investments across the City's Successor Agency areas, as well as citywide initiatives. Funded by $8.7 million in proceeds from Successor Agency land sales, deliberately designed by the City Council for economic development both citywide and in specific areas, this effort aims to reinvest past public assets into Long Beach's economic future. These one-time funds are being recommended to be allocated into a series of programs that will help stimulate business growth, revitalize corridors, activate public spaces and support neighborhood recovery across the entire city over the next few years.
  • The City's Human Resources Department has made significant strides in modernizing and centralizing its processes by streamlining workflows and enhancing service delivery across the organization, including the recent merge of the Civil Service Department with the Human Resources Department and establishment of the Civil Service Employee Rights and Appeals Commission following the voter-approved passage of Measure JB last fall. The City is also now proposing adding enhancements in FY 26 for digitized timekeeping and project management staffing.
  • Measure A funds will support various public safety operations with one-time investments including: High Crime Focus Team ($1.3 million), Real Time Crime Center facility construction ($1.5 million), Drone Program equipment ($300,000), Youth and Young Women's Leadership Academies ($150,000), Gender and Diversity-Focused Recruitment and Retention efforts in the Long Beach Fire Department ($100,000), Ambulance Operator Backgrounds, Academies and Onboarding Costs ($360,000), State-Mandated Paramedic Certification School ($400,000), and Extending the lease for Fire Station 9 for six months ($330,000).

FY 26 Capital Improvement Plan (CIP)

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The Proposed FY 26 CIP was developed by the Department of Public Works, in conjunction with the Financial Management Department and Office of the City Manager, along with input incorporated from public workshops and presentations to community groups and local elected officials and was planned using the City's five-year (FY 23 – FY 27) Elevate '28 Infrastructure Investment Plan. This ensures that the limited resources available fund priority projects, while at the same time, maintains the City's existing infrastructure and minimizes future replacement costs.

The Proposed FY 26 CIP is $188.8 million, excluding the Harbor Department, from various sources. Included in the proposed FY 26 CIP is $12.3 million from Measure A funds (inclusive of $3.1 million in bond proceeds) dedicated to enhancing the City's aging infrastructure, which are also included in the Elevate '28 Infrastructure Plan. Additionally, the Budget utilizes $7 million in Park Impact Fees for high priority projects which will move forward in the next year including: 10th Street Greenbelt ($400,000); Heartwell Park Artificial Field Turf Improvements ($2 million); Houghton Park Playground ($1.5 million); Houghton Park Sports Complex ($300,000); MacArthur Park Improvements ($1 million); and Martin Luther King Jr. Park Improvements ($1.8 million).

The proposed FY 26 CIP Budget includes funding for the following other infrastructure projects:
  • $4 million in Airport runway and terminal improvements.
  • $9.6 million for marina, lagoon and wetlands improvements
  • $68.3 million in mobility and safety improvements.
  • $11.5 million in park improvements including $1.8 million to acquire and develop future park land.  
  • $5.4 million in public facility and energy efficiency improvements.

Elevate '28
In FY 24, the City launched the Elevate '28 Infrastructure Investment Plan, which built upon the initial FY 23-FY 27 five-year CIP and includes transformative infrastructure investments across over 180 unique projects, making it the City's largest infrastructure investment plan to date, totaling $1.1 billion. The Elevate '28 plan allows the City to focus received and anticipated infrastructure funding on priority projects throughout a five-year period. The plan also serves as a guiding document throughout each annual proposed CIP development.

Elevate '28 will revitalize the City's infrastructure; prepare Long Beach to serve as a major Venue City for the 2028 Olympic and Paralympic Games; invest in the 10-year community investment plan, the Westside Promise; and continue to enhance City parks, major corridors and visitor-serving areas to improve quality of life for community members for generations to come. As of FY 26, the five-year plan is supported with over $1 billion of planned investment including $306 million of Measure A funding and over $782 million from additional funding sources like LA Metro Transportation Funding, State Gas Tax, LA County Measure W, and various grant awards.

Mayor's Recommendations
In accordance with the City Charter, the City Manager provided the Mayor with his Proposed Budget in early July. The Mayor has reviewed and supports the Proposed FY 26 Budget and has made additional recommendations, including the below, with the complete recommendations available in the Mayor's Recommendations:

Protecting Vital Public Safety, Violence Prevention and Youth Development Services
  • One-time funding of $285,000 to continue the Safe Passages Program, which empowers local residents to serve as Safety Guides and ensure the safety of youth walking to and from school.
  • One-time funding of $100,000 to continue strategic policies, partnerships and programmatic interventions year-round to reduce gun violence and improve community safety in alignment with the S.T.R.O.N.G. Beach initiative.
  • One-time funding of $50,000, combined with carried over funding to bring the total funding to $133,000, to continue a city grant program to fund Summer Block Parties and Neighborhood Activations, a priority of both neighborhood association leaders and violence prevention leaders.
  • Bring the total funding for Youth Participatory Budgeting to $500,000 to support direct investments into programs serving Long Beach youth determined by youth leaders themselves.
  • One-time funding of $175,000 to continue the Office of Youth Development's Youth Development Coordinator position.
  • One-time funding of $110,000 to support youth outreach and administration to manage the Youth Participatory Budgeting program.  
  • One-time funding of $90,000 to support Hoops After Dark, a skills camp that offers a combination of sports, mentorship, educational workshops and community engagement activities.

Supporting Neighborhood and Community Engagement
  • One-time funding of $50,000 to support partnership efforts between Rancho Los Alamitos and Rancho Los Cerritos, in collaboration with the Historical Society of Long Beach, to plan for exhibits, celebrations or other activities recognizing the 250-year anniversary of the United States Declaration of Independence.
  • One-time funding of $50,000 to support a Cambodian Economic Impact Studythat will collect current economic data, community surveys, case study interviews and focus group discussions in partnership with the United Cambodian Community of Long Beach and California State University, Long Beach.
  • One-time funding of $25,000 for the Long Beach Area Veterans Collaborative to support volunteer coordination, veteran community outreach and engagement and the development of a digital resource hub for Long Beach veterans.
  • Making the one-time funding of $50,000 for the annual Long Beach Pride Parade structural and ongoing to provide greater stability and consistency for one of the city's signature gatherings that celebrates the visibility, rights and contributions of the LGBTQ+ community.

Supporting Our Diverse Immigrant Communities
  • Implementing the Defending Our Long Beach Values Plan as a part of the FY 26 budget, which will allocate more than $5 million in available assistance, including $2.5 million of new funding entirely dedicated to supporting the needs of Long Beach's diverse immigrant communities. This includes:
    • One-time funding of $600,000 along with the current budget allocation to bring the total funding for the Long Beach Justice Fund to $1.85 million, ensuring our residents have access to legal representation and resources necessary to safeguard their constitutional rights, uphold due process protections and preserve family unity.
    • One-time funding of $500,000 in immediate FY 25 funds from LA County Measure A to fund emergency relief and rapid response services for Long Beach immigrant residents and families, including rental assistance, basic needs support and mental health supports.
    • One-time funding of $150,000 to establish a new "Safe Place" Business Certification Program and support know-your-rights trainings led by experienced community-based organizations to educate local businesses, including street vendors, on what to do if law enforcement activities take place at or near their business operations and how to verify the existence of a legitimate court order or judicial warrant. This includes funds for the production of toolkits, posters, flyers, wallet cards and other know-your-rights materials in various languages, and to fund Safe Place Certified Business decals that successfully trained businesses can display on their storefronts to signal that the business is informed of their rights and affirm that the business is welcoming of immigrant communities.
  • The Mayor's Recommendations also include several substantive policy recommendations to strengthen the Long Beach Values Act further by ensuring City staff are trained and prepared on how to respond to law enforcement activities on or near City-owned properties and enhancing accountability mechanisms to ensure full compliance with the Values Act among City employees and external contractors.

Prioritizing Homelessness Prevention and Affordable Housing Needs
  • Utilizing the nearly $16 million in new annual revenues secured through LA county Measure A to amplify local homelessness response efforts. Recommendation to implement in FY 26 the Upstream LB: Homelessness Prevention & Housing Pathways Plan, which will accelerate the City's roadmap to end youth homelessness, keep Long Beach residents in their homes, continue to expand the City's homelessness response infrastructure and provide meaningful pathways out of homelessness and into affordable housing. The Plan funds a series of proven and evidence-based programs, as well as innovative new programs, based on the categories of Homelessness Prevention, Crisis Response, and Pathways Out of Homelessness. Across these investment categories, the City will be prioritize specific vulnerable populations that face increased risk of homelessness including older adults, at-risk youth and communities impacted by recent federal policy actions, such as immigrant communities facing economic hardships from federal immigration enforcement activities and people on fixed incomes impacted by cuts to federal healthcare, food or financial assistance programs

Catalyzing Small Businesses Support and Economic Development Opportunities
  • Mayor Richardson's recommendations affirm the City Manager's proposal to leverage more than $8.7 million in proceeds from Successor Agency land sales to support inclusive economic development and neighborhood revitalization strategies. These one-time funds will be used to implement the Back to Business: Long Beach Small Business & Neighborhood Activation Plan. This comprehensive plan includes two key components – the Small Business Rebound Initiative, which expands wraparound supports to local businesses, as well as new resources to support critical neighborhood activations in Downtown Long Beach and throughout the city to build more vibrant neighborhoods.

Budget Hearings and Community Budget Meetings

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The City Council will hold the first of several budget hearings on Aug. 5, 2025, to begin the budget review process. The Budget Oversight Committee will hold a series of meetings from July 29 through Sept. 9. During these meetings, the Budget Oversight Committee will review the budget and provide recommendations to the full City Council. This Proposed Budget will go through review and ultimate approval by the City Council with any modifications as they deliberate and take additional input on the City's spending plan for the next fiscal year.

Engaging community members through public input is an important and valued part of the City's budget development process. Earlier this year, the City hosted five in-person meetings and one virtual community meeting to offer Long Beach residents an opportunity to provide feedback at an earlier phase of the FY 26 Budget development process. The City will conduct another round of engagement opportunities for the Long Beach community to ask questions regarding the FY 26 Budget and share additional input.

Five in-person community meetings will be held from 6 to 7:30pm at the following:
  • Wednesday, Aug. 6 – American Gold Star Manor (3021 N. Gold Star Dr.)
  • Wednesday, Aug. 13 – Browning High School (2120 Obispo Ave.)
  • Saturday, Aug. 16 – Wardlow Park Community Center (3457 Stanbridge Ave.)
    • This meeting will be held from 10 to 11:30 a.m.
    • Monday, Aug. 18 – Michelle Obama Neighborhood Library (5870 Atlantic Ave.)
  • Wednesday, Aug. 20 – Billie Jean King Main Library (200 W. Broadway)

One virtual community meeting will be held on Thursday, Aug. 7, from 6 to 7:30 pm. Advanced registration for the virtual meeting is required in order to receive the link to the Zoom meeting. Interpretation services in Spanish, Khmer, Tagalog and American Sign Language will be available for all meetings.

Community members may also provide input on the Proposed Budget by completing the Budget Digital Comment Card. Those without a computer or smart phone access may visit a public lab at a Long Beach Public Library location during regular business hours to access and complete the Digital Comment Card.

More information about the Proposed Budget, including information about budget hearings and community meetings, is available at longbeach.gov/fy26

The City's budget is developed by the Department of Financial Management, which oversees the financial and fleet services operations of the City, including an over $3.7 billion annual budget, serves as a financial adviser to the City Manager and City Council, and ensures the City's timely and accurate financial reporting, full transparency and accountability, and integrity.

About the City of Long Beach
Long Beach is nestled along the Southern California coast and home to approximately 466,000 people. As an award-winning full-service charter city, Long Beach offers the amenities of a metropolitan city while maintaining a strong sense of individual and diverse neighborhoods, culture, and community. With a bustling downtown and over six miles of scenic beaches, Long Beach is a renowned tourist and business destination and home to the iconic Queen Mary, nationally recognized Aquarium of the Pacific and Long Beach Airport, the award-winning Long Beach Convention and Entertainment Center and world-class Port of Long Beach.

For more information about the City of Long Beach, visit longbeach.gov/. Follow us on social to keep up with the latest news: Facebook, X, Instagram and YouTube.

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