Santa Ana faces significant financial challenges, leading city officials to implement more than $11.5 million in expenditure cuts this past summer. These reductions included approximately $5 million from vacant positions and part-time employee spending, nearly $1 million for park maintenance, around $500,000 from a police-run after-school program, five city commissions, and a 15% decrease in Arts & Culture programs. To address the ongoing budget deficit, a majority of city council members voted to place a measure on the November ballot asking voters to extend the temporary Measure X sales tax increase indefinitely. Measure X was previously slated to decrease in a couple of years before fully sunsetting in 2039.
The city’s financial situation was a central topic at a recent mayoral and city council candidate debate hosted by Com-Link, a group representing numerous neighborhood associations in Santa Ana. Six city council candidates and three mayoral candidates participated, fielding questions on various issues, including the city’s budget, homelessness, public safety, development, planning, and rent control. The format of candidates receiving different questions prompted criticism from some attendees regarding potential bias. Jeffrey Katz, a moderator and advisor to the Com-Link board, whose unsuccessful 2024 city council campaign was endorsed by Mayor Valerie Amezcua and Councilman Phil Bacerra, addressed these concerns during the forum.
Several candidates presented differing views on the proposed sales tax extension, known as Measure N, and strategies for economic recovery. Mayor Valerie Amezcua, who voted to place Measure N on the ballot, stated that if the measure does not pass, city officials would initiate "across the board" cuts affecting raises and unfilled positions.
Conversely, Councilman Phil Bacerra, despite voting to place Measure N on the ballot, expressed opposition to extending the sales tax indefinitely, arguing it would lead to a "bigger structural deficit." He advocated for policies that attract businesses, specifically pushing for more hotels in Santa Ana, stating the city needs to "get to it" regarding economic development rather than just discussing it. His opponent, Sandra De Anda, director of policy for the Orange County Rapid Response Network, also opposed Measure N, stating, "I don’t believe that we should be balancing our budget off of working class people." De Anda proposed auditing departmental spending and processes, along with investing in underutilized parcels for commercial development and boosting local businesses through initiatives like block parties.
Dan Shimell, an attorney challenging Mayor Amezcua, attributed the city's financial woes to an over-reliance on Measure X funds. He agreed that cuts would affect every department but suggested beginning with "big ticket items," noting that past increases might "have to see those increases go away." Dwayne Shipp, President of the OC Heritage Council and a Community Development commissioner, suggested that if the sales tax extension fails, officials should conduct a thorough review of past spending and actively seek more grant funding, including federal support.
Councilman Ben Vazquez stated his support for Measure N and proposed an economic development committee to generate new revenue, an idea he credits for leading the city manager to hire more economic development employees. He emphasized the need for Santa Ana to be more business-friendly, aiming to "fill up empty lots, fill up the empty buildings, create revenue." Vazquez also noted a failed attempt to attract a Costco to the city. His opponent, realtor and former Parks & Recreation commissioner Selica Diaz, did not address the city's financial situation at the forum, though she applauded the mayor’s approach to homelessness and proposed expanding the city’s quality of life teams across all wards, billing the county for these services.
Isuri Ramos, Chairwoman of Santa Ana’s Planning Commission and executive director for Chispa, previously suggested the city leverage underutilized assets, such as the city’s stadium and vacant commercially zoned land, to generate revenue without increasing taxes on residents. She was not asked about the city's budget during the Com-Link forum.
Another opportunity for candidates to present their positions will be at a forum hosted by the Santa Ana Chamber of Commerce tonight at Santa Ana College from 5-8 p.m. The November ballot will ultimately determine the future of the sales tax increase and its role in Santa Ana's fiscal landscape.
