San Bernardino’s $329.5 Million Budget Enters Its Second Month

San Bernardino’s 2026-27 fiscal year budget is in effect, putting a $329.5 million financial plan into implementation while city officials monitor a projected gap of more than $11 million between expected revenue and spending across all funds.

The City Council unanimously approved the operating budget and the 2027-31 Capital Improvement Plan on June 17, 2026. The fiscal year began July 1, and the city said final budget documents would be available online and in city libraries during August.

What the adopted plan funds

The city says the adopted budget includes nearly $10 million in new capital-improvement funds for infrastructure projects. The broader Capital Improvement Program includes approximately $165 million in active projects entering fiscal year 2026-27, including street rehabilitation, park improvements and facilities serving residents experiencing homelessness.

The operating plan continues funding for police, parks and recreation, library services, public works, code enforcement, economic development and homelessness-response programs. It also supports year-round recreation programming, special events and neighborhood quality-of-life initiatives.

During the June 17 budget hearing, the council also appropriated $1 million from the Cultural Development Fund for arts initiatives.

Strong reserves do not erase the budget gap

San Bernardino projects approximately $104.9 million in General Fund reserves, which the city says exceeds its reserve-policy requirements. That is a General Fund figure and should not be confused with the broader all-funds budget picture.

Independent local reporting on a report by Tarik Rahmani, the city’s director of Finance and Management Services, identified approximately $318.2 million in projected revenues and $328.5 million in expenditures across all funds. The difference is a projected gap of more than $11 million.

The gap is not a confirmed year-end result, an audit finding or, by itself, proof of a cash shortfall. It is a budget projection showing that expected revenues and expenditures do not fully align. The city’s own release separately says the adopted budget contains a projected gap between recurring revenues and expenditures.

The finance report cited in local coverage identified structural pressures including slowing revenue growth, rising personnel and operating costs, and reliance on economically sensitive sources such as sales and use tax revenue and Measure S. For residents, the accountability question is how actual revenue and spending compare with those projections as the fiscal year proceeds.

The adopted materials do not establish specific service cuts, tax increases, layoffs or project delays. Any such action would require separate documentation and, where applicable, council action.

Where residents can review the budget

The city’s Budget Books page lists the Fiscal Year 2026-27 Budget in Brief and operating-budget and capital-improvement materials for public review. The city also maintains an Agenda Center with council agendas, minutes and related records.

The city’s June 23 announcement said final budget documents would be available online and in city libraries in August. That timeline concerns public access to final materials, not a new budget vote.

Residents following the budget should watch future financial updates, recurring-cost pressures, revenue performance and any council action that changes implementation of the operating or capital plans.

Sources

• City of San Bernardino Adopts 2026-27 Budget
• San Bernardino City Council adopts $329.5M budget with deficit
• City of San Bernardino Budget Books