The Irvine City Council has begun addressing a predicted $37 million budget deficit projected for the 2027-28 fiscal year.
On September 22, the council approved a plan to raise city revenues by $10 million and initiated a freeze on most new hiring. A target was set to save an additional $17 million by reducing the number of city employees by 31 persons by July 2027, and another 24 by July 2028, for a total of 55 positions. Police officers were specifically excluded from potential layoffs under this plan. The council also identified $10 million in program and operational cuts. However, details on where specific job cuts would occur, should attrition not meet the reduction targets, were not specified at that time.
Further action was taken on October 13, when City Manager Sean Joyce proposed a budget reduction of $677,000 through the elimination of CicloIrvine, a half-day biking event held last summer. This event is part of the Citywide Events budget, which totals $2.272 million annually. During discussions, council members expressed reservations about downsizing or eliminating other annual events.
Mayor Larry Agran noted that last year, all special events garnered only $188,000 in sponsorships. He suggested that council members contact the city’s top 20 businesses to secure annual commitments of $100,000, allowing businesses to sponsor events of their choice. Councilman James Mai echoed these sentiments, suggesting the city reconsider its ban on sponsorships from alcohol purveyors, casinos, and gaming. Councilwoman Betty Martinez Franco proposed that the Irvine Chamber of Commerce assume the $35,000 cost of the annual State of the City event.
After more than an hour of discussion, the elimination of CicloIrvine was approved, with Councilman William Go dissenting. This decision reduced the projected deficit by $677,000, leaving approximately $36.4 million to be addressed.
City Manager Sean Joyce, hired on August 10 for a one-year contract at $434,000 per year, is expected to implement additional modest budget reductions and reallocations identified in staff analyses, which could total close to $10 million. The city is also looking to address staffing reductions through attrition, with 68 vacant job positions currently reported. Further consideration of the budget is scheduled for February, at which point updated revenue data is expected to be available.
Residents interested in the city’s financial status can access detailed information, including the total cost (salary and benefits) for every city employee position, within the agenda packages for the September 22 and October 13 council meetings. These documents are available on the city’s website.
