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    The Road to Tyranny by Don Jans

    Santa Paula: Q3 Budget Shows Negative Covid Impact of Six Percent

    by Sheryl Hamlin

    Santa Paula’s Finance Director Cristy Ramirez presented the state of the city’s General Fund at the May 6, 2020 city council meeting.

    From the staff report, we learn the following:

    The Covid shutdown has taken its toll on Santa Paula’s economy as follows:

    -Property Tax has remained consistent.
    -Sales Tax is down substantially with Measure T tax down $535,000, regular sales tax down $220,000 and Prop 172 down $32.177.
    -The total effect including all decreases on the General Fund is $1.134.300 as shown below:

    General Fund Negative

    Staff has found monies which can be delayed until the next fiscal year and coupled with the unfilled positions, an amount of $414.500, which still leaves a deficit of $719,800.

    Measure T to the Rescue

    The Measure T commission recommended using $500,000 of the unspent monies to help with the deficit as long as these funds were used for Measure T projects.

    And Now, the Rest of the Story

    With the contribution from the Measure T fund, there is now a deficit of $219,800. Director Ramirez says that it is too late in the year to make other cuts, presumably she meant headcount, so will wait until the final sales tax and property tax revenues are known to determine how to resolve the $219,800 deficit.

    Recall that previously Director Ramirez had “found” a large unallocated sun in a reserve fund, which the council approved transferring to the General Fund reserve. This is one option. Read about the decision here.

    The other option could be a municipal and state rescue package from the Federal government which would trickle down to the states and the counties to the cities.

    Recall that the League of California Cities has identified billions in deficits the cities are incurring due to the shutdown. Read about that here: League of Californa Shortfall Cities

    To watch the meeting click here.

    To read about the author, click sherylhamlin dot com

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    William Hicks
    William Hicks
    2 years ago

    Federal/State/County policies are going to cause more long term damage than the virus if left unchecked. What a shame that Garmans shut down, for instance.

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