After Fires, Malibu Faces Budget Crisis

A new report shows the city is facing major shortfalls.

Holly Bieler · April 16, 2026

A [budget forecast](youtube.com/watch?v=7JpAcvj5qYA&t=177s&utm_source=www.stringermalibu.com&utm_medium=newsletter&utm_campaign=malibu-stringer-4-16-26&_bhlid=40ff4fb21ed29e10ba5c5a86d8db83acd16b62b2) released by the City of Malibu last night shows the city is facing major shortfalls, with current expenditures set to deplete 75% of the city's general fund over the next 5 years.

The new numbers paint a stark portrait of the economic toll of the Palisades Fire. Rebuilding efforts have cost Malibu roughly $35 million over the past two years, of which $7.5 million was originally ear-tagged for federal reimbursement. That number is now expected to be closer to $1.5 million, Assistant City Manager Christopher Smith said during last night's meeting.

And while city revenues have largely rebounded, expenditures have increased, with bulked-up staffing and costs like insurance ballooning next year's budget to $85 million.

City Council members directed staff this week to decrease that number by about 10%. Proposed cuts include defunding some city jobs, reducing the homeless outreach program, and cutting funding to parks and street maintenance.

The final budget goes up for a vote on May 26.