Santa Ana residents are at a crossroads as they prepare to vote in November on whether to make a temporary sales tax increase permanent. The 1.5% increase, initially approved as Measure X in 2018, has been a vital source of revenue for the city, funding a range of services from homeless mitigation to public safety and youth programs.
The city council voted 5-2 on July 1, 2026, to place this measure on the ballot, setting the stage for a crucial decision that will impact Santa Ana’s financial stability and service levels for years to come.
The Financial Stakes of Measure X
The 1.5% sales tax increase, which was set to gradually decrease and expire in 2039, has brought in approximately $83 million in the past fiscal year. However, with projected deficits looming, city officials are urging voters to consider the long-term benefits of keeping the tax in place.
Assistant City Manager Kathryn Downs highlighted that without the measure, the city would face a $30 million deficit in the 2028-29 fiscal year. By maintaining the current rate, the deficit would be reduced to roughly $13 million a more manageable gap according to city projections.
Mayor Valerie Amezcua emphasized the potential consequences of not approving the measure, warning that essential services could be severely impacted. “When you call 911 it may take 10 minutes, when you call fire it may take 15 minutes, when you call about that pothole it may take five days, six days, 10 days” she cautioned during the July 1 meeting.
Divergent Views Among Council Members
The decision to place the measure on the ballot was not unanimous. Councilmembers Jessie Lopez and David Penaloza both running for state assembly, voted against it. Penaloza criticized the city’s financial management, stating, “One thing that this city and the city council have failed to realize is also the mismanagement of funding and dollars goes hand in hand.”
Lopez expressed concerns about breaking the initial agreement with voters, who were promised a temporary tax. “I just strongly feel like I can’t break that deal with our constituents” she stated, highlighting her commitment to fiscal responsibility.
In contrast, Councilwoman Thai Viet Phan framed the measure as an opportunity for voters to decide the kind of city they want to live in. “Do you like the additional removal of graffiti? Do you like the additional bus benches? Do you like the additional responses to clearing up potholes?” she asked, listing the benefits of the tax increase.
The Path Forward
City officials have already made significant cuts to balance the current budget, slashing approximately $11 million in spending and bringing in an additional $2 million in revenue. These cuts included reducing park maintenance, eliminating vacant positions, and dissolving five resident-run commissions to save $38,000.
Councilman Phil Bacerra acknowledged the need for more revenue but cautioned that taxing alone is not a long-term solution. “Taxing is not going to be the long-term solution to our structural deficit” he said, emphasizing the need for broader financial strategies.
As Santa Ana residents prepare to vote, the outcome of this measure will shape the city’s financial future and the quality of services its residents rely on. The decision will not only address immediate budget concerns but also set the stage for the city’s financial health in the coming decades.
