Banning Mayor Announces City Is 'Cash Poor,' 74 Jobs Could Be Eliminated

BANNING, CA — The City of Banning's yearslong financial woes are in the spotlight after Mayor Richard Royce announced on Thursday the city is currently "cash poor," and dozens of city jobs could be eliminated.

"For several years, Banning spent more money than it took in. Our financial books weren't accurate. Nobody could see it clearly. Not the council, not the staff, and not you," Royce said during a video address.

"When our new city manager and finance team finally got our records up to date this year, we learned just how deep this hole went. So, the city council declared a fiscal emergency and we gave clear direction to our city manager: live within our means," he added.

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Royce said the city's budget of $32 million for 2026 matches what it expects to bring in, rather than $39 to $41 million the city was spending.

Royce said the city manager has proposed eliminating about 74 positions, which represents about half of the city's general fund workforce.

"This will be one of the hardest decision this council will have before us. The proposal protects the essentials like police patrols, 911 dispatch, fiscal services, and our core financial operations. But some other services like certain recreation programs, permitting processing, they may be limited or have to slow down," Royce said.

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Royce said Banning is "asset rich, but cash poor." The city also owns land and property that isn't helping the city's deficit.

The mayor's announcement comes about two months after a Grand Jury report stated the city of Banning has suffered years of mismanagement. Royce, Mayor Pro Tem Cindy Barrington, Councilmember Leroy Miller, and Councilmember Colleen Wallace each responded to the Grand Jury report in letters dated Aug. 14, 2026.

During his address published on Thursday, Royce said the city collects about $942 per person in general fund operating revenues such as property tax, sales tax, and bet tax every year compared to neighboring cities which collect about $1,430.

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"We cannot tax or cut our way of this alone. What gets us here is smart economic development," Royce said,

He said projects like a proposed retail center expected to generate additional sales tax, property tax, and other revenue will support local services.

The city has held two budget workshops asking residents for feedback about the budget, including the most recent event on Thursday.