The Fullerton Fiscal Sustainability Ad Hoc Committee convened on April 28 to discuss the city’s challenging financial outlook, including an estimated $13.7 million budget deficit for the upcoming fiscal year. Intrim Accounting Director Steven Avalos and City Manager Eddie Manfro presented preliminary budget figures and highlighted that department heads are currently identifying potential cost reductions, although no decisions have been finalized.

The committee, originally established in August 2024, aims to review both short- and long-term financial conditions in Fullerton and recommend strategies for improvement. It was reestablished in November 2025 to focus specifically on sales tax proposals for potential ballot measures.

During the meeting, the committee reviewed departmental spending summaries as part of the preliminary 2026–27 budget process and discussed previous budget-balancing recommendations to the City Council, including options for new sales tax measures.

Manfro also announced a forthcoming independent audit by Grant Thornton, which will investigate accounting adjustments that have led to a $10 million reduction in expected reserves. This audit is expected to provide further insights into the city’s financial management and operational efficiency.

Historical context was shared, illustrating a long-standing cycle of financial challenges for Fullerton, including budget pressures from the late 1970s, recession-related revenue losses in the early 1990s, and workforce reductions during the Recession. Staffing in the city has not returned to pre-recession levels, having dropped from a peak of about 706 full-time employees in 2008-09.

As the budget process continues, city staff emphasized that the figures presented are preliminary and will undergo further analysis and revisions. The Fiscal Sustainability Ad Hoc Committee plans to evaluate expenditures and cost-saving measures before making recommendations to the City Council in the coming weeks.