Santa Ana’s budget woes

Santa Ana has nearly eliminated a $13 million budget deficit by trimming expenditures to just $85, though significant cuts will still be implemented across city departments. The proposed budget draft, presented during a City Council meeting, avoids layoffs and furloughs, with the largest reductions targeting Public Works at over $3.3 million and the Police Department at $2.2 million. Additional savings will come from dissolving five non-mandated commissions, reducing part-time spending, and scaling back ambulance services from 24-hour to 12-hour coverage, which will increase fees for residents. Key areas affected include after-school programming, such as the Police Athletic and Activity League (PAAL), which serves 87 children in after-school and summer programs and 200 in sports mentorship. The program’s budget will be cut by half, though Councilmember Johnathan Ryan Hernandez emphasized that youth services will expand, with exercise instruction reinstated at four elementary schools and services extended to 2,200 children. Mayor Valerie Amezcua noted that the library and parks departments will take over some programming but in a different format. The budget adjustments follow a 3% revenue increase this year, outpaced by a 6% rise in spending, driven by labor and pension costs. However, the city’s financial outlook remains uncertain due to Measure X, a voter-approved sales tax set to expire in 2039, which will reduce annual revenue by at least $30 million starting in 2029. The City Council, except for Councilmembers David Penaloza and Jessie Lopez, supports seeking voter approval to extend the tax permanently. The proposed budget will be reviewed during a public hearing on June 2, allowing residents to provide input before final approval. While the deficit has been drastically reduced, the city’s long-term financial stability hinges on addressing the upcoming tax expiration and ensuring essential services remain accessible despite reduced funding.