Santa Barbara supervisors pause plan to place 1¢ unincorporated sales tax on June ballot after public debate

Deputy County Executive Officer Britney Oderman presented a proposal Feb. 3 for a transactions-and-use tax — a 1¢ increase in the unincorporated county sales tax — to address an ongoing multi‑year budget shortfall.

"We are today presenting two options for a 1¢ sales tax, a general purpose sales tax in the unincorporated county for a limited term of 5 years," Oderman told the Board, describing an alternative that would instead run until ended by voters. Staff estimated raising the unincorporated rate from 7.75% to 8.75% would generate roughly $16.7 million a year and about $80 million over five years.

Budget Director Paul Clemente framed the scale of the need. He said the county faces a projected ongoing cumulative deficit that begins at about $23 million in fiscal year 2026–27 and could reach an ongoing $66.4 million by year five. "That would be roughly $80,000,000 collected over 5 years," he said of the proposed sales tax revenue, and noted the levy would address only a portion of the longer‑term gap.

Why it matters: staff said federal and state funding changes have reduced resources that support safety‑net programs countywide and left the county with limited options to avoid service cuts to health, social services and public safety. The proposed tax requires a four‑fifths Board vote to place on the June ballot and a majority of unincorporated voters to pass.

Public testimony split along expected lines. SEIU Local 6 Executive Director Laura Robinson urged the Board to give voters the choice. "The proposed sales tax increase ... is not a perfect solution, and it is not the only solution, but it is one of the few immediate available tools to prevent deep service reductions and the loss of workers," she said. Other speakers urged alternatives: Maureen Earls and Larry Severance asked the Board to prioritize jail‑population reduction strategies and early representation measures that could reduce bed needs and operating costs; Angelina Detamonte opposed the measure as regressive, saying a sales tax would hit low‑income residents hardest.

Board members pressed staff on assumptions and tradeoffs: whether the measure should be countywide or limited to the unincorporated areas; the interaction with the county’s $50 million proposed down payment to the Northern Branch jail expansion; expected pension savings projected for 2031–32; and whether the county could instead rely on reallocations, reserve dollars or department cuts. Supervisors also raised political concerns about placing the proposal on a June primary ballot in conservative unincorporated areas.

After more than an hour of deliberations, Chair Steve Nelson said there was not clear support to place the measure on the June ballot and recommended "no action at this time." The Board agreed; staff were asked to continue preparing analyses and options should the Board wish to revisit a measure for a later election cycle.

Next steps: staff noted that if the Board decides to pursue a November or subsequent ballot the timeline would require additional preparation and public outreach. The Board did not adopt ballot language or an ordinance on Feb. 3.

Sources: Staff presentation and slide materials by Deputy CEO Britney Oderman and Budget Director Paul Clemente; public testimony from SEIU Local 6 and other residents.