Voters in any city expect to be treated with respect by their elected officials. That\u2019s not happening with Santa Ana\u2019s Measure N, a classic bait-and-switch from City Hall which seeks to make permanent a sales tax that was initially pitched to voters as temporary.\u00a0<\/p>\n
In 2018, Santa Ana voters approved Measure X, which authorized a 1.5% sales tax increase until 2029, at which point the tax would be dropped to 1% until 2039 and then terminated.<\/p>\n
Measure X raised the city\u2019s sales tax rate from 7.75%, the Orange County base, to 9.25%, tied<\/a> for highest in the county. The rate remains at 7.75% in neighboring Tustin and Irvine.<\/p>\n If Measure N fails, the city would continue to have Measure X revenue coming in for years to come. The tax rate will drop by 0.5% on April 1, 2029, and by a further 1 cent on April 1, 2039.\u00a0<\/p>\n It raises the question of why City Hall would rush to eliminate the sunset dates of taxes that will remain on the books for years to come.\u00a0<\/p>\n How is the Golden City doing financially? Its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2018<\/a> listed its unrestricted net position, a key measure of fiscal health, at a negative $501 million. The ACFR for June 30, 2025<\/a>, the latest produced, listed a negative $568 million.\u00a0<\/p>\n In other words, Measure X didn\u2019t help repair the city\u2019s structural hole or improve its UNP. At best, it has merely helped the city\u2019s finances circle the drain at a slightly slower pace.\u00a0<\/p>\n The council voted 5-2 to put Measure N before voters. We interviewed the two council members who opposed the premature tax extension. They\u2019re Democrats running against each other for Assembly District 68<\/a>. Councilman David Penaloza called Measure N a boondoggle. Councilwoman Jessie Lopez, who defeated<\/a> a recall attempt by the powerful Santa Ana Police Officers Association outraged that she opposed an unaffordable contract, noted the union is a major backer of Measure N.<\/p>\n