Sacramento Mayor to Deliver State of the City

Mayor Kevin McCarty will address the city's budget, homelessness efforts, and stalled housing projects at the Crocker Art Museum on Thursday.

Updated on Nov. 4, 2026 in Saving

Sacramento Mayor to Deliver State of the City

Live Poll

Should Sacramento keep spending more on tiny home villages for homeless residents?

Sacramento Mayor Kevin McCarty will deliver his annual State of the City address Thursday morning at the Crocker Art Museum, including a question-and-answer session with an interviewer yet to be announced. The address comes as the city works through a $66.2 million budget shortfall and a stalled Natomas tiny home project.

Why it matters

The address may preview the city's major initiatives and priorities for the coming year, including how it plans to close its budget gap while expanding homelessness services. Residents and businesses will gain insight into how spending decisions may affect city fees, services and housing programs.

The city reports a $66.2 million budget shortfall in 2026, with unsheltered homelessness down 19% from 2024 to 2026 and 500 new shelter beds opened in McCarty's first 15 months. The details of how the remaining gap will be addressed have not been specified.

The players

Kevin McCarty

Kevin McCarty is the mayor of Sacramento, who campaigned in 2024 on addressing homelessness.

Maraskeshia Smith

Maraskeshia Smith is the city manager of Sacramento, responsible for the city's day-to-day administration.

The details

To avoid widespread layoffs, the city eliminated vacant positions, raised fees and cut homelessness spending. Meanwhile, the Natomas tiny home project has been placed on hold after its projected cost nearly doubled, and McCarty dropped plans to place a real estate transfer tax on the November 2026 ballot after a city-sponsored poll showed limited support.

Thursday: State of the City address at the Crocker Art Museum.
Spring 2026: City opened a 96-bed safe camping site in the River District.
November 2026: Real estate transfer tax ballot measure dropped after poll results.
Early 2027: South Sacramento tiny home sites expected to begin accepting residents.

Market Dynamics

The city's $42 million in Project Homekey+ funding supports 100 affordable tiny homes at Rio Linda Boulevard and Las Palmas Avenue, even as projected costs for other sites have risen. The pattern shows how state housing grants are being used to offset local budget constraints.

Budget decisions such as raised city fees and cuts to homelessness spending can directly affect what Sacramento residents pay for local services. Residents on the city's south side may see new affordable housing options as the Rio Linda and Las Palmas tiny home sites open.

The takeaway

Sacramento's budget and housing decisions are increasingly tied to state grants and tight local finances, making the mayor's address a useful signal of priorities. Residents who want to follow the city's spending choices should watch how the remaining shortfall is addressed in upcoming budget cycles.

What happens next

The south Sacramento tiny home sites are expected to begin accepting residents by early 2027, and McCarty has said he may revisit the transfer tax measure in future years.