The San Luis Obispo City Council unanimously approved the city's nearly $225 million budget for the 2026-27 fiscal year Tuesday night. City staff said the spending plan avoids employee layoffs and major service reductions while continuing work on several long-term city priorities.
City manager Whitney McDonald said instead of layoffs the city will eliminate several vacant positions as officials worked through the budget process.
“We are eliminating four and a half positions,” McDonald said during the meeting. “Those were all vacant and some of them were held vacant very purposefully to make sure that they could be considered as part of this reduction process.”
The budget maintains funding for existing city services, including parks and recreation programs, public safety operations, transportation projects and child care assistance programs. Council members praised staff for balancing the budget while preserving the city's work plan and avoiding cuts to services that residents rely on.
The spending plan also allows the city to continue pursuing several long-term priorities, including planning for a fifth fire station, the Prado Road overpass and bridge projects, future public safety infrastructure improvements, traffic safety projects and housing-related initiatives, including tenant protection efforts.
Staff also said they are monitoring potential changes to state and federal funding sources and will continue pursuing grant opportunities to help fund future projects. The budget was approved on a 5-0 vote.
