Budget Gap, Street Repairs and Infrastructure Top Long Beach’s Agenda

Long Beach is heading into the heart of budget season with some big numbers on the table.

General Fund Deficit Looms

City financial documents show Long Beach facing a projected General Fund structural deficit of about $16.9 million in Fiscal Year 2026, with larger gaps forecast in the following years. Officials have leaned on one-time funds in recent cycles, but long-term solutions are still being discussed as federal funding uncertainty adds pressure.

The adopted capital and operating plans emphasize maintaining core services while preparing for possible shifts in federal grants tied to infrastructure, housing and climate programs.

$1.4 Billion Street Repair Backlog

Fresh capital planning data highlight the scale of Long Beach’s infrastructure challenge. The City’s latest Pavement Management Program update shows an average Pavement Condition Index score of 61 for streets, slightly above the City’s target.

But keeping roads in good shape will require major investment. Public Works estimates roughly $1.4 billion over five years would be needed to address all major and minor street deficiencies. Alleys are in worse condition, with an overall score of 41 and an estimated $96 million needed over five years to bring them up to standard.

Capital Investments and Measure A Funding

The FY 26 Capital Improvement Program proposes $188.8 million in citywide projects, not including Harbor Department work. Planned investments span mobility and safety upgrades, parks improvements, utilities infrastructure, airport projects, beaches and marinas.

More than $12 million in Measure A sales tax revenue is slated for infrastructure work this year, part of the broader Elevate ’28 plan to modernize aging facilities and corridors.

As community budget discussions continue, the central question remains how to balance everyday services with the long-term cost of rebuilding streets, utilities and public spaces across Long Beach.

Sources

https://www.longbeach.gov/globalassets/pw/media-library/documents/resources/general/capital-improvement-plan/capital-improvement-plan/fy-26-adopted-cip-budget-book-final
https://longbeach.gov/globalassets/city-news/media-library/documents/fy26-proposed-budget/january-fy26-cbm_ppt_english
https://source.www.longbeach.gov/globalassets/finance/media-library/documents/city-budget-and-finances/budget/budget-documents/fy-26-adopted-budget/05e–cm-transmittal-letter—fy-26-proposed-final-and-attachment-a_updated-071525v5