Santa Barbara County Is Facing Big Budget Shortfalls

••• Santa Barbara might finally reform the way that the harbor’s boat slips are sold. —Santa Barbara News-Press

••• “Over the Next Five Years, County Government Is Looking at $66 Million in Cumulative Budget Shortfalls [….] Of that, [explained Santa Barbara County Executive Officer Mona Miyasato], $26 million can be explained by chronic deficits that have afflicted certain general fund operations, like the departments of Public Health and Social Services. Some of it stems from a projected increase in wages and benefits. But $40.3 million, she said, will be caused by federal and state funding cuts to social safety net programs. If the supervisors want to keep those programs whole for the next year alone, it will cost them $23 million they currently do not have.” —Independent

••• “Santa Barbara City Council is laying the groundwork for a rent stabilization ordinance, and while there’s still a long path to final approval, councilmembers offered a road map for city staff to follow over the next several months, including direction to pursue a temporary moratorium on rent increases until the details of the new rent cap are worked out in full.” —Independent

••• “Despite previous resistance, the Hilton Santa Barbara Beachfront Resort will move forward with its plan to expand its buildings and add more rooms to the hotel. The Santa Barbara Historic Landmarks Commission [granted] final approval to Hilton Santa Barbara, allowing the hotel to add 73 rooms to its facilities. The expansion will increase the room count from 360 to 433.” —Noozhawk

••• “The Santa Barbara County Board of Supervisors on Tuesday approved a 15-year lease for [a four-court indoor volleyball] facility with youth sports nonprofit Santa Barbara Volleyball Club. The agreement allows the club to demolish the current duplexes and storage sheds at 4550 Hollister Avenue, adjacent to the Page Youth Center and Fire Station 13, to build the 18,400-square-foot steel facility.” It’ll be “funded through donations and community fundraising.” —Noozhawk

••• “The California Coastal Commission voted to approve a permit allowing the Diablo Canyon Power Plant, perched above Avila Beach of San Luis Obispo County, to continue operating through at least 2030. The controversial decision was conditioned on Pacific Gas & Electric, the [nuclear] plant’s operator, agreeing to permanently conserve 4,000 acres of surrounding land from commercial or residential development.” —Independent

••• Realtor.com and North Hillcrest recently spilled the beans on the famous buyers of two Montecito properties. Ever since I started Siteline, I’ve wrestled with whether to mention when someone purchases property around here, and the rule I settled on was to do it only after another outlet had published it—i.e., the information had become public. (An exception was made for serial flippers.) As Siteline has grown, and concerns about privacy along with it, I no longer feel comfortable doing so. Selling, however, still strikes me as fair game.

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13 Comments

Curtis

Concerning the county’s projected financial shortfall: I just couldn’t help but be reminded of the 48% pay increases the Supervisors just granted themselves in May. This news coming just seven months later creates-at best-very poor optics.

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Christine!

Concerning the budget shortfalls- funny the County just can’t see the connection between Sable operating & tax revenue flowing in. The CCC saw the glowing light with Diablo.

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Instant Alligator

Perhaps we could use more clarity on the budget shortfall? Maybe some qualified accountants could offer a bit of “pro bono” work to help the public understand it in simple terms? Always a lot of assumptions and opinions but never any detail. Point us to where we can get and understand details.

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Derek

Is the city banning boat owners from owning the slips? No more cash transactions, then no more property taxes collected if they are worthless

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LD

Boat owners don’t own the slips, they have permits to use the slips which are public land. They pay permit fees, not property tax

This is a great change. It’s absurd to have a black market for privately selling the use of public land

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Rich

Slip owners do pay property tax, there is a possessory interest tax of 1% of the assessed value of the slip that is based on your right to occupy the slip, which is separate from the slip rental fee. There was a 2016 grand jury report that discusses it in detail!

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James Adelman

What are the changes for boat slip owners? I am in Marina #3. Paid $19K for a 28’ slip permit in 2016. Now they are “selling” for $65K – $80K. How would the proposed changes affect my ability to sell it?

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Rich

I read the Ordinance Committee report and proposed Ordinance changes and it shouldn’t impact existing slip owners, the revision is only to stop people who got their slip from the waitlist from flipping it immediately.

David ochoa

I would like to see all the taxes they collect and what they pay out and to who, its basic mathematics every person should know what they can and cannot afford, it just baffles me how a city cannot run off its budget.

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Heather S.

Santa Barbara’s annual budget for 2025, is approximately $577 million. With annual personnel costs (including elected officials) of $124+MILLION spent on salaries & benefits. $124+MILLION only reflects the City of Santa Barbara’s annual payroll.

Santa Barbara County’s annual payroll (including benefits & pensions) is close to 1 BILLION per year! This is unsustainable.

Prior to 2004, City Council Members received a modest monthly stipend reflecting the part-time, public service nature of their roles—a model that echoed the historical American tradition of citizen-legislators serving without lavish remuneration.

The pre-2004 stipend system supported effective governance for decades. Proving that modest compensation fosters dedicated public servants without creating career incentivized politicians.

I propose we go back to the basics & return PART-TIME Elected Council Member Compensation to a monthly stipend emphasizing public service over lifelong political careers. If we continue down this road we will be taxed to death for the pensions of PART-TIME Elected City Council Members. The same City Council Members who are working very hard to revoke our constitutional property rights. While we are busy working to pay their salaries, life long benefits, health insurance, and pensions.

I personally, do not have a pension. Yet, I work and pay taxes, that pay for PART-TIME Elected City Council Members pensions’. This is unjust enrichment.

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Doug B

Each member of the SB city council makes about $100K/year, which includes salary and benefits. So that’s an annual cost of about $700K. As you point out, the SB city budget is $577 million per year. So the city council salaries are about 1/10 of 1% of the overall city budget. Maybe the city council members are overpaid, or maybe not, I have no idea. But I do know that if you are looking for significant savings in the city budget, you should probably look elsewhere.

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Adam Smith

”Rent stabilization” (i.e., rent control) is a great way to ensure reduced construction of rental units, and to ensure demand will outpace supply. It also creates a disincentive for owners to improve their properties. Want to create a “crisis” in housing or any other non-monopolized economic activity? Just get government involved in setting prices.

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Jimbo

Waiving all permits and fees for residential development is a sure way to bring costs down and then rents can come down.
It’s criminal how much city permits and fees add to a project

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