A Long Beach commission approved a $760 million budget for fiscal year 2024-25, representing a 19.5% increase from last year’s adopted spending plan, officials announced Monday.
Last week, the Long Beach Board of Harbor Commissioners approved the port’s spending plan, which includes $368 million for capital improvements in rail, zero-emissions and other infrastructure. In addition, the budget will also allocate $25.8 million to the city’s Tidelands Operating Fund, which supports Long Beach’s seven-mile coastline.
Operating revenue is estimated to be 6.8% higher than last year’s budget too.
“This budget reflects our values, balancing serving as an economic engine for our city and region and growing responsibly while limiting environmental impacts,” Port of Long Beach CEO Mario Cordero said in a statement. “We are optimistic about the year ahead and this spending plan builds our competitive advantages for the green future.”
Port officials said the spending plan will be considered for adoption by the City Council later this year, and prior to the start of the next fiscal cycle which begins October 1. The increase in the FY24-25 spending plan is largely due to infrastructure projects like the Pier B On-Dock Rail Support Facility, which is expected to break ground this summer, as well as the proposed Pier Wind.
If approved, Pier Wind would be the nation’s largest facility designed to assemble offshore wind turbines.
Next year’s proposed capital budget totals $368.3 million, 47.2% higher than the prior year. Of that money, some $204.9 million is for the Pier B project, Pier B will shift more cargo to “on-dock rail,” where containers are taken to and from marine terminals by trains. Moving cargo by on-dock rail is cleaner and more efficient, as it reduces truck traffic. No cargo trucks would visit the facility.
Also included in the budget is approximately $25 million in Clean Truck Fund subsidies to support the transition of the heavy-duty truck fleet to zero emissions. The Port of Long Beach has twin goals of a zero-emissions cargo-handling fleet by 2030 and zero-emissions trucking by 2035.
Additionally, during the board’s action, the amount allocated for the Community Sponsorship Program was increased from $2 million to $3 million. The sponsorship program helps the Port of Long Beach engage with and inform local community members about port operations and initiatives.
“Because trade, construction and tourism support 51,000 jobs in Long Beach — or one in five jobs — it’s important we stay focused on attracting business, building for the future and moving cargo sustainably,” Harbor Commission President Bobby Olvera Jr. said in a statement. “This budget advances these goals by leveraging our stable financial strength as a top gateway for global commerce.”
Officials noted that the port does not use tax revenue to support its operations.
