KANSAS CITY, Mo. — Kansas City leaders are bracing for deep budget cuts as the city faces a projected $100 million deficit for the 2027 fiscal year.
Starting Friday, a citywide hiring freeze will go into effect with only a few critical departments spared.
City officials are working to prevent what some are calling a looming fiscal free fall after internal budget forecasts revealed a concerning gap between revenue and expenses.“The fact that we have this forecast should be alarming to everyone. Our revenues are down and our expenses are up,” said city councilman Crispin Rea, who serves on the city’s finance committee.
Documents obtained by FOX4 show that next fiscal year, Kansas City expects to spend nearly $940 million from its general fund—while only bringing in about $840 million. That’s a shortfall of more than 10%.
“How would you characterize the crisis point this city is at?” FOX4 asked Stacia Williams of Williams Financial Group.
“I think it’s a huge crisis point – $100 million. We’re not talking about a small number,” Stacia Williams of Williams Financial Group said when asked about to characterize the state of the city’s finances.“We’re talking about $100 million. I’m disappointed. Again, this is the city — the city of Kansas City.”
The hiring freeze will affect most departments across the city government except for aviation, water and fire, according to memos sent by City Manager Mario Vasquez.However, staffing decisions may go beyond just pausing new hires.
Departments are being directed to prepare for deeper cuts, including layoffs. The memo calls for a “review and elimination of vacancies or existing staff including reductions in force.”
“All the things that are outlined in those memos are things that are options,” Vasquez said.“Right, but that is a precaution,” Vasquez continued when asked if the hiring freeze is optional.
Mayor Quinton Lucas, who also serves as Vice Chair of the Finance Committee, acknowledged the financial imbalance.“Salaries, other issues are outpacing revenues that are coming in, so you’re going to see some real work from all of us,” he said.
“So you’re seeing us take responsible, fairly conservative, fiscally conservative measures upfront to avoid having those issues later.”
Despite the major implications of the memos, neither Mayor Lucas nor Councilman Rea said they had seen them before FOX4 brought them to light.Rea noted that, from his understanding, the roles being eliminated would be “non-essential.” Still, the challenge ahead is significant.
“The important question (is) what do we do next as we face these economic headwinds, and that we are rightsizing our city government, and that’s going to require some hard decisions,” Rea said.
The hiring freeze begins Friday, October 17.
While job security remains uncertain for many city employees, Mayor Lucas says the city’s “rainy day fund,” its emergency reserve,s is strong enough to be used if necessary.