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Higher taxes on the table as Santa Maria addresses budget deficit

The City of Santa Maria may increase taxes to cover a projected budget deficit.
City of Santa Maria
The City of Santa Maria may increase taxes to cover a projected budget deficit.

The City of Santa Maria may raise taxes to cover an expected budget shortfall.

Santa Maria is facing a projected budget deficit of over $40 million this fiscal year and next.

City officials report that costs are outpacing revenues. They plan to use reserve funds and make cuts across several departments, but they're also looking at other options.

One is raising the city’s top revenue source: the sales tax.

Mark van de Kamp, with the City of Santa Maria, said they are considering a half-percent increase; that would raise an estimated $13.5 million each year.

“We're not here to make a profit; we're here to cover our expenses, so it's a delicate matter, and we know that we have a lot of opportunities ahead,” Van de Kamp said.

The public will have a chance to weigh in when the proposal goes to the City Council.

According to Van de Kamp, other options include higher taxes on hotel stays and allowing cannabis sales in the city.

KCBX Reporter Amanda Wernik graduated from Cal Poly, San Luis Obispo with a BS in Journalism. Amanda is currently a fellow with the USC Center for Health Journalism, completing a data fellowship that will result in a news feature series to air on KCBX in the winter of 2024.
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