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Santa Barbara Budget Bouncing Back

Worst years of recession appear to be over

Written by KEY News Staff

Story Created: Feb 9, 2012 at 12:18 PM PDT

Story Updated: Feb 9, 2012 at 7:16 PM PDT

Santa Barbara - Even though money problems still lurk line item by line item, Santa Barbara City leaders have been told the current and future budgets look better than the ones they have had in recent years.

"I don't know why people aren't jumping up and down because that's incredibly good news," said Councilmember Cathy Murrillo. She is newly seated on the council and this was her first big budget review. "We were looking at a $2.7 million deficit in the next fiscal year and now it looks like it's $500,000. The sobering part of that is we've cut a lot of positions and services and so we have to come back and restore those things."

Among the first areas to get new funding will be the eastside library, which has had a cutback in hours.

A slow recovery appears to be underway based on projections by the city's finance staff in a morning workshop.

Among the areas of growth have been the Transient Occupancy Tax and the Sales Tax revenues. Both have been on the rise in the current fiscal year. Property Taxes have not been impressive and remain relatively flat due to the sluggish real estate market.

Santa Barbara City Administrator Jim Armstrong says he does not expect lengthy budget hearings in June prior to the new budget taking effect in July.

"I personally am very happy that the budget does not include furloughs and think actually that will help productivity in the terms of some of the issues we've talked about." said Mayor Helene Schneider.

With future Redevelopment Agency Funds in question due to state legislative action, the city's plans for a new police command center, the library plaza renovation, downtown sidewalk improvements and other major projects are not actively moving forward.

The city is also hoping to keep its active police force of sworn officers at 141 positions.

At the airport, the passenger count is down 7 percent for the first six months of the year.

KEY News Senior Reporter John Palminteri was with the city council and department heads at the workshop and has our report.
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