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South Coast city managers describe structural budget gaps; councils hold off on new tax measures
Summary
City managers from Carpinteria, Santa Barbara and Goleta said expenses are outpacing revenues, described a reliance on restricted capital funds, and reported that councils are not placing new general tax measures on the upcoming ballot.
City managers at a South Coast Chamber panel described long-term fiscal pressures across the region and explained recent local choices about taxes and budget strategy.
Michael Ramirez, city manager of Carpinteria, said the city faces a structural budget gap driven by rising expenses and relatively flat revenues. He said most capital improvement funding is restricted for specific projects and thus cannot be used for pavement work, which contributes to resident frustration: "Those different buckets of funding... have to go to specific projects or to a specific project type," Ramirez said.
Kelly McAdoo, Santa Barbara city administrator, said passage of Measure I (a half‑cent sales tax) helped avoid more severe cuts but that the city still faces a structural deficit. McAdoo said council budget deliberations reduced an earlier estimate of a $14,600,000 general‑fund shortfall to approximately $3,600,000 for fiscal year 2027 and that the council decided not to pursue a tax measure in November.
Robert Nisbett, Goleta city manager, described Goleta as "fiscally stable" but cautious, noting contract risks such as upcoming sheriff‑contract negotiations and construction cost inflation. He said Goleta’s Measure B (a one‑cent sales tax passed two years ago) has been important and that Goleta is not placing a new tax measure on the ballot this year.
All three managers said they are pursuing longer‑term financial planning, forecasting and targeted operational adjustments rather than short‑term across‑the‑board cuts. Ramirez said Carpinteria is preparing a five‑year forecast for its capital improvement program and exploring revenue options after a recent assessment‑district measure failed.
Panelists urged continued community engagement as cities balance service levels and infrastructure maintenance with constrained funding.

