Pasadena City Council Monday, June 16, unanimously adopted the 2025-26 fiscal year budget while city officials warned of potential federal funding cuts that could slash city programs.

“It is a balanced budget, which in today’s times says something of itself,” City Manager Miguel Márquez said.

The approximately $1 billion operating budget includes $362 million in general fund revenue, which after expenses leaves about $120,000.

However, what has loomed over the entire budget process since members of city staff first presented a proposed budget in May is the unknown of how decisions made at the state and more crucially the federal level will trickle down into Pasadena’s finances.

Finance Director Matthew Hawkesworth presented several city programs funded by federal dollars that could be eliminated to severely cut if the federal government follows through with its budget proposals. They included housing programs like Section 8, the Community Development Block Grant program as well as public health and workforce programs.

Councilmember Rick Cole called the proposed federal cuts draconian and Councilmember Steve Madison criticized the administration’s approach to the cuts and the recent Immigration and Customs Enforcement raids and military deployment in Southern California.

“Virtually every single impact that you described is illegal on the part of the administration,” Madison said of the potential federal cuts. “It’s grounded in racism and discrimination against marginalized and minority groups.”

Sonja Berndt, a local advocate for the homeless, was the only public comment speaker on the budget and criticized the proposed budget for not including enough spending on interim housing solutions or other support mechanisms for the unsheltered homeless in Pasadena.

“The proposed budget is deeply flawed because it disregards the critical needs of our unsheltered residents,” Berndt said.

One flashpoint in the discussion Monday came over the need to add additional battalion chief positions to the fire department budget.

Mayor Victor Gordo suggested the positions be added to the budget Monday night and then the council could direct members of city staff to find ways to fund the positions. Councilmembers Cole and Jason Lyon objected and Gordo agreed to adopt the budget as presented and take up the fire department positions at the next meeting.

“We’re talking about cutting $800,000 to a million dollars to bring in the extra two positions. If we assume it’s half a year it’s half of that,” Lyon said. “But I want to know where we’re cutting it. We pride ourselves on our fiscal responsibility in this city and on adopting balanced budgets and the idea of on the very last night throwing something in that is a large move, I’m not comfortable with. And I want these positions so let’s figure it out.”

Similar budget adjustments will be needed as the fiscal year continues, Marquez said, given the uncertainty.

“I just want the council to understand that while we’re putting before you a recommended budget that’s balanced and has modest increases we also anticipate the need throughout the year to come back as this uncertainty becomes more certain over time and we’ll have to pivot from time-to-time to make ends meet,” Márquez said.