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Santa Ana officials warn of looming budget gap; Measure X extension polling looks favorable

Santa Ana City Council · January 26, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff told the Santa Ana City Council that Measure X funded staff and services but recent sales‑tax growth has flattened, labor and pension costs are rising, and the city could face a multimillion‑dollar deficit unless it pursues balancing measures. Council discussed polling, revenue options and timing for a ballot measure.

An overview of Santa Ana’s finances presented at a Jan. 23 council workshop said the city faces a structural budget challenge as sales‑tax growth has flattened and long‑term obligations rise.

The finance presenter told the council that without changes the city’s 10‑year model shows a budget shortfall and staff “do expect a deficit this coming budget cycle,” adding that “we could be starting the next budget process with up to a $20,000,000 deficit.” The presentation cited several drivers: a $2.2 million increase in the CalPERS…

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