Baldwin Park council approves FY2025–26 midyear budget update showing $3.76M projected deficit

The Baldwin Park City Council on March 18 approved a midyear budget update and projections for fiscal year 2025–26 after a presentation from Finance Director Rose Tam that showed a projected general fund deficit of roughly $3.76 million.

Tam told the council the deficit was driven primarily by a one-time, unforeseen settlement and noted departments had identified roughly $215,000 in cost reductions prior to finalizing the midyear update. She also reported projected revenue increases of about $946,000 and total projected general fund expenditures rising by approximately $690,000; the tentative projected general fund reserve as of June 30, 2026 was presented as $12.1 million, which already factors in the projected deficit.

Council members praised staff work identifying savings (the presentation referenced a $510,000 reduction in police-related costs and about $186,000 in recreation savings) and pressed for additional controls on overtime, consultants and avoidable costs. Council asked staff to prioritize cuts that reduce recurring expenses and to pursue grants and partnerships for programs such as youth employment and after-school services.

After discussion, Council Member Alejandra Avila moved and Mayor Pro Tem Gene Ayala seconded adoption of the midyear budget update and projections; the clerk recorded a 5-0 vote in favor of the motion.

Finance staff said they will return with follow-up budget materials during the fiscal-year process and noted that special-revenue and internal-service accounts may be considered later if transfers become necessary to cover operating needs.