Sacramento leaders begin three-month process to close $66M budget gap

The City of Sacramento is facing a multi-million-dollar budget deficit, and on Tuesday, city leaders and the public got their first chance to hear ideas on how to balance the budget.

It's the first step in a three-month-long process that could lead to layoffs and the elimination of some popular programs.

At Sacramento City Hall, the message was clear: budget cuts are coming. Mayor Kevin McCarty said he's not ruling anything out, including layoffs and cuts to public safety.

"We're looking for other options, but we're laying it all on the table, looking at everything," McCarty told CBS News Sacramento.

The city is facing an estimated $66 million budget deficit. On Tuesday, Sacramento City Manager Maraskeshia Smith presented councilmembers with an overview of ways to reduce expenses.

"I want to be able to align this budget with your priorities and incorporate your feedback and also include the public's feedback," Smith told the council.

One program that could be cut is the police department's high school magnet academy, which places officers in the classroom.

Students were at city hall to show their support for keeping the program.

"They have taught me many things, which I wouldn't have been able to learn without my officer," one student said to the council. "Please do not take that away from all of us."

The city says revenue from taxes is actually increasing, but overall costs are even higher. 

"I think that's a reality check that we need to make sure that we're right-sizing our operation here," McCarty said.

The biggest expense is salaries, which take up 80% of the budget. The mayor defends past decisions to give employees raises.

"We want to make sure we keep our firefighters and police officers paid according to other jurisdictions or they're going to leave, and we already have an issue with recruiting new people here," McCarty said.

The city is also considering raising fees on things like parking meters, animal control, and ambulance service.

But if there's any good news, it's this: the mayor says he doesn't favor any more tax increases to balance the budget.

"I think the voters are already pretty tapped out, so I don't see us going to the voters and increasing taxes," McCarty said.

Next week, the police chief, fire chief, and homeless services director will present ways to make cuts in their departments.

A final balanced budget needs to be adopted by June.