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Santa Maria expecting $3M blow to city budget due to COVID-19 pandemic

Posted at 4:55 PM, Apr 07, 2020

The City of Santa Maria is projecting a loss of at least $3 million in sales tax revenue this fiscal year as a result of the COVID-19 pandemic.

City officials say sales tax makes up 48 percent of the city's General Fund revenue.

"We know this community strongly supports the City and the top-quality public safety services we have, but we expect a significant revenue downturn, resulting in service reductions," said Mark van de Kamp, Public Information Manager for the City of Santa Maria.

Officials say sale tax revenue helps fund police officers, firefighters, and other municipal services.

Santa Maria has already declared a local emergency, furloughed 93 hourly workers, and invoked a hiring freeze, but city officials believe they'll need some type of relief from the state and federal governments to help bridge the financial gap.

The projected $3 million hit does not include losses from property tax, transient-occupancy tax, or permit revenues, which are also expected.