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Santa Ana council approves midyear budget adjustments amid declining cannabis and sales-tax revenues
Summary
Council approved a midyear budget update that reduces some one-time capital transfers, adds 13 reallocated full-time positions, and keeps recurring reserves, while members pushed for more sidewalk and alley funding ahead of the FY26 budget cycle.
The Santa Ana City Council on March 4 approved midyear adjustments to the fiscal 2024–25 budget after staff outlined revenue shortfalls in cannabis and sales taxes and proposed a mix of one-time reductions and targeted investments.
City staff told the council the city has seen falling gross receipts in cannabis sales and weaker-than-expected Bradley-Burns and Measure X sales-tax receipts; the midyear update reduces sales-tax estimates by approximately $5.0 million in total and proposes roughly $2.94 million in one-time adjustments across several funds to rebalance the year. The council vote on the package was 6–1, with Councilmember Lopez dissenting.
The report recommended using one-time reductions — including a $1.4 million reduction in the alley-improvement program and a $1.5 million cut in…
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