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Vallejo council backs modified budget plan, delays broad layoffs and orders midyear staffing and revenue reviews
Summary
After a daylong presentation and public input, Vallejo's council approved a modified budget plan that avoids immediate layoffs but directs staff to return by midyear with proposals to cut filled positions, set revenue targets and adjust Measure P allocations, including $250,000 for marina dredging.
Vallejo's City Council on June 9 approved a modified version of the proposed fiscal year 2026'27 budget that avoids immediate broad layoffs but directs staff to return with detailed staffing reductions and revenue targets by midyear.
Assistant City Manager and acting finance director Nalungo Conley walked the council through three balancing scenarios that together addressed a roughly $31.3 million shortfall. The scenarios mixed vacancy eliminations, filled-position cuts, and shifts of Measure P funds. "This process was once described to me as the Super Bowl of local government," Conley said as staff outlined trade-offs built into each option.
After public comment and sustained council discussion, Councilmember Matias moved a modification to scenario 3. It returned $1.7 million in contract-related savings to the Measure P fund, asked staff to identify 10 filled full-time positions for reduction by midyear to partially replace those savings, set specific revenue targets for code enforcement, planning and fire, and directed a $250,000 allocation for marina dredging. The motion passed. The council did not adopt an immediate list of layoffs; instead it required staff to cost and identify the impacted positions and revenue assumptions and return with a revised, implementable plan.
Interim City Manager Black told the council the extra time would be used to conduct more rigorous workforce and financial analysis: "The key is making sure that we do it in the smartest way possible," he said, urging a long-range financial planning process and careful monitoring to avoid rushed or harmful cuts.
Council members pressed staff on details the presentation did not fully contain: how many of the 141 citywide vacancies are general-fund versus enterprise-funded, which vacant positions are already in active recruitments, and what services would be reduced if filled positions are eliminated. HR Director Stephanie Cifuentes had earlier told the council that as of May 22 the city had 141 vacancies and listed department-level vacancy rates, including 52 police vacancies and 31 water-division vacancies.
Public commenters at the hearing urged both fiscal prudence and stronger revenue-generation steps. Several residents recommended prioritizing road repairs and economic-development initiatives that could grow the tax base. Council members also asked staff to produce a practical workplan and timelines so council and the public can track progress.
What happens next: staff will return with the detailed costing and proposed list of the 10 filled positions to be reduced (or alternatives), the revenue-target analysis for code enforcement/planning/fire, and an updated Measure P plan reflecting the $1.7 million refund. Council expects those materials at an upcoming meeting and during the midyear review if further adjustments are required.
