Escondido voters approve Measure I to increase sales tax funding for city services

The Escondido City Council meeting on May 21, 2025, focused on the implementation of Measure I, a new sales tax approved by voters to address the city's ongoing budget deficit. Measure I, which passed with 61.12% support in November 2024, raises the sales tax rate from 7.75% to 8.75%. This general tax will remain in effect for 20 years unless extended by voters.

City officials explained that the funds generated from Measure I will be used for a variety of public services, including public safety, homelessness initiatives, infrastructure improvements, and maintenance of parks and open spaces. Unlike special taxes, which are earmarked for specific projects, Measure I allows for broader use of funds at the discretion of the city government.

The city anticipates that Measure I will generate approximately $28 million annually, with projections varying between $35 million and over $41 million based on different sales tax consultants' forecasts. The city plans to budget conservatively at around $38.5 million, using the average of these estimates. The new sales tax took effect on April 1, 2025, with the first revenue distributions expected in July 2025.

City staff emphasized the importance of monitoring sales tax revenue closely, as economic fluctuations can significantly impact collections. They plan to provide a report to the council after the first quarter of actual sales tax receipts to refine future revenue projections.

Overall, Measure I is seen as a crucial step for Escondido to secure funding for essential services and improve the city's financial stability.