Long Beach released its initial plans for the 2026 budget, totaling $3.7 billion to cover programs, infrastructure needs, police and fire departments and various services.
The budget is a slight uptick from last year’s $3.6 billion, and the City expects a $16.9 million deficit going into next year, though considerably lower than the originally anticipated $30 million deficit they expected in January.
Long Beach was originally facing a $22 million deficit when the budget process began, but the City Manager’s Office suggested $5 million in budget cuts across all departments to bring this number down. To cover the bulk of the shortfall, the City is using the last of the Long Beach Recovery Act funds ($15.8 million), which were federal funds granted to help cities recover from the COVID-19 pandemic.
Since the City is not “solving” the $16.9 million shortfall this year, it will be lumped in with the projected $22 million deficit for next year, Modica said, forcing the City to contend with a projected $39.9 million deficit for the 2027 budget. He added that these projections assume there will be no recession, and do not factor in federal funding cuts, the impacts of which the City is still unsure of.
This budget also includes Mayor Rex Richardson’s recommendations, which still need to be approved by the rest of the City Councilmembers. These recommendations include additional funding for the Long Beach Justice Fund, affordable housing programs and funding for the Tenants Right to Counsel program.
Programs that have not received additional funding for 2026 so far include the Long Beach Municipal Band, Beach Streets, Hoops After Dark, firefighter wellness and professional development initiatives, health department positions and afterschool programming at El Dorado West, Scherer Park and College Estates Park.
Long Beach’s Elevate ‘28 Infrastructure Investment Plan, which includes over 180 projects aimed at preparing the City to host events in the 2028 Olympics, is now totaling over $1 billion. This is made up of $306 million in Measure A funding and $782 million anticipated from “additional funding sources.”
This is just the first draft of the 2026 budget. Over the next few months, the City Council will discuss each department and make decisions that will either fund or cut many programs throughout the city. The final 2026 budget will be approved by Sept. 9, and residents can join these discussions at city council hearings on Tuesday evenings, Budget Oversight Committee hearings and community meetings throughout August.
The preliminary budget is as follows, with many figures not yet released by the City:
Immigrant Community
The Mayor announced the “Defending our Long Beach Values Plan,” which includes more than $5 million being made available to communities impacted by immigration enforcement and recent federal cuts to essential programs.
Additional funding towards Long Beach’s immigrant community includes:
- $1.85 million for the Long Beach Justice Fund, which provides free legal representation and basic needs assistance to those at risk of deportation.
- $500,000 to fund emergency relief and rapid response services for Long Beach immigrants with rental assistance, basic needs support and mental health support.
- $150,000 to establish a “Safe Place” Business Certification Program and to promote Know Your Rights training and informational materials for local businesses, workers and street vendors.
The other $2.5 million will go to rental assistance and shallow rental subsidies for these impacted communities. These funds are coming from Measure A dollars and the Los Angeles County Affordable Housing Solutions Agency.
Housing & Homelessness Prevention
Long Beach’s homelessness funds will focus on three vulnerable populations: transition-age and at-risk youth, seniors and communities impacted by federal cuts. Richardson said the latter group is for those who are losing access to housing and food programs or may be losing income due to the fear of immigration raids.
“These dollars cannot come at a more critical time in our community, considering recent federal funding cuts to services, federal threats to homeless student protections, budget challenges at the state level, this funding is essential to protecting our city’s progress and expanding on it,” Richardson said.
- $5.2 million towards homelessness prevention plans
- $1 million for shallow rental subsidies for seniors
- $646,000 for shallow rental subsidies for those impacted by federal funding cuts and for the immigrant community
- $1.5 million for the Tenants Right to Counsel Program to provide legal assistance and tenant education to prevent evictions.
- $500,000 for flexible financial support for transition-age youth existing the foster care system
- $2.5 million towards crisis responses like Community Crisis Response teams, interim housing, outreach and mental health support, supporting emergency interventions for people in danger of experiencing homelessness
- $7.9 million for pathways out of homelessness, including affordable housing production loans, youth housing subsidies, technical assistance for community land trusts.
Public Safety
- $1.3 million for the Police Department’s High Crime Focus Team, adding Civilian Community Service Assistants to improve response times and support calls for service.
- $1.3 million towards the Fire Department’s Rescue 2 Peak Load Ambulance Unit, which will operate on a 12-hour, seven days per week schedule.
- Continuing the Community Crisis Response teams, which respond to mental health and quality of life calls, now year-round.
- Continuing the Be S.A.F.E. Program, which activates 11 sites across the city with games and supervision for children during summer weekdays.
- $285,000 to the Safe Passages Program, ensuring the safety of youth walking to and from school.
- $500,000 for the Youth Participatory Budget.
- The City is converting 21 part-time school crossing guard positions into six full-time parking control checkers to patrol safety and parking challenges around schools for the full day.
Infrastructure
- $13.8 million for street improvements
- $31.7 million for arterial street and corridor enhancements
- Continuing pothole repairs
- $400,000 for the 10th Street Greenbelt
- $2 million for Heartwell Park artificial field turf improvements
- $1.5 million for Houghton Park playground
- $300,000 for Houghton Park Sports Complex
- $1 million for MacArthur Park improvements
- $1.8 million for Martin Luther King Jr. Park improvements to basketball courts and vision plan implementation
- $1.5 million to cover anticipated Tidelands funds due to the loss of oil revenue
- $2 million for Naples Seawalls tieback program
- $2 million for a start-up investment for efforts to activate revenue-generating assets such as the return of Sir Winston within the Queen Mary, and the Belmont Pool.
- Enacting priorities laid out in the City Auditor’s Street Projects and Pavement Management Performance Audit: Establishing communications plan to increase transparency and improving project cost estimates.
- Developing a five-year Capital Improvement Plan for future infrastructure projects and investments, with a focus on street improvements.
Local Businesses
More than $8 million in new funding will go towards the Back to Business: Long Beach Small Business & Neighborhood Activation Plan, which includes the Small Business Rebound Initiative:
- $500,000 into the Grow Long Beach Revolving Loan Fund that provides low-interest loans to help new businesses cover start-up costs like renovations and facade improvements.
- $250,000 will go towards developing a new Business Support Office Initiative to guide start-ups and business owners through City permitting and license processes.
- $500,000 for a Rapid Response Initiative to help small businesses navigate emergencies and impacts from infrastructure projects, and address corridor-level challenges. Another
- $500,000 will pilot a Tariff Emergency Relief Fund grant program to address impacts from trade tariffs, in partnership with the Port of Long Beach. The City will also continue funding the Level Up LB: Extreme Small Business Makeover and Grant Program, the Inclusive Business Navigators Program and the Legacy Business Program.
- $400,000 for a new “Safe and Secure” grant program to help fund proactive crime-prevention measures like security cameras and cashless points-of-sale systems.
- $100,000 will bolster the Visual Improvement Program which responds to vandalism and property crimes.
The Neighborhood Activation Plan portion focuses on creating more vibrant corridors in each district, with an emphasis on downtown:
- $1.45 million to begin planning, visioning and developing an advertisement district as part of the Downtown Entertainment District.
- $600,000 to fund Midblock Improvements in downtown.
- $500,000 for Downtown Long Beach Activation and Events to bring concerts, festivals and community events.
Citywide investments into neighborhoods include:
- $500,000 to continue supporting Business Improvement Districts across the city.
- $500,000 to establish El Mercado de Long Beach, which will support small business developments
- $250,000 to fund corridor improvements in Central Long Beach
- $225,000 to fund implementation of community recommendations and strategies outlined in the Westside Long Beach Economic and Market Study as part of the Westside Promise Initiative.
The public can participate in budget discussions at various opportunities including city council meetings, Budget Oversight Committee hearings and community budget meetings.
View the full proposed 2026 Long Beach budget here.
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