Hayward Council addresses $12.6M budget deficit and resident priorities

During the Hayward City Council meeting on May 13, 2025, significant discussions centered around the city's financial challenges and the prioritization of services in light of a projected $12.6 million budget deficit. The meeting highlighted the need for a strategic reassessment of city programs and services, emphasizing that not all initiatives can be sustained under current financial constraints.

The Finance Director addressed the council, stating that while all city programs are deemed essential, a thorough evaluation is necessary to determine which services should be prioritized. This approach aims to ensure that the city can effectively serve its community despite limited resources. The director pointed out that the city cannot continue to operate under the assumption that every program can be funded, urging a shift towards "position management" rather than layoffs or furloughs. This involves scrutinizing vacant positions and their funding sources to align staffing with the city’s most critical needs.

Community engagement was underscored as vital in this process, with the director encouraging input from both staff and residents. The goal is to gather diverse perspectives that could inform better decision-making regarding service delivery and funding strategies. The director also noted the importance of exploring new revenue opportunities to help mitigate the deficit.

In addition to financial discussions, the meeting addressed the implications of potential federal funding cuts, particularly concerning programs related to diversity, equity, and inclusion (DEI) and support for sanctuary cities. The city currently relies on approximately $22 million in federal funding, which is primarily project-based, but the potential for reduced funding could further complicate budgetary challenges.

Assistant City Manager Youngblood presented findings from a recent resident satisfaction survey, which revealed that housing costs, homelessness, crime, and infrastructure maintenance are top concerns for residents. The survey results indicate a strong desire for improved emergency response, neighborhood safety, and clean public spaces. Residents also expressed a need for more visible police presence and better traffic circulation, highlighting areas where the city can enhance its services.

The discussions from the meeting reflect a critical juncture for Hayward as it navigates financial difficulties while striving to meet the needs of its residents. The council's commitment to prioritizing community input and reassessing service levels will be essential as they work towards a sustainable budget and effective governance. Future meetings will likely continue to address these pressing issues as the city seeks to balance fiscal responsibility with the demands of its community.