By Jorge Casuso
January 21, 2026 -- The City Council next Tuesday will decide whether to ask voters in November to approve another tax to help the cash-strapped municipal government make ends meet.
The potential $540-per-parcel tax would raise an estimated $12 million a year to "maintain funding for homelessness, firefighters, 911 emergency services, and libraries," according to the recommended ballot language.
The measure -- which requires a two-thirds (66.7%) super-majority --would also preserve City funding for Santa Monica’s public schools "to retain quality teachers and improve education quality."
A survey found underwhelming support for the potential measure among Santa Monica voters, who have approved a total of seven local tax measures in the last two general elections.
The poll of 499 randomly selected voters conducted last October by Goodwin Simon Strategic Research found initial support was in the mid- 40 percentile based on a 75-word ballot summary.
The proposed measure gained the support of an additional 10 percent of those polled "after voters learned how funds would be used locally and not diverted to state or federal governments," according to a staff report to the Council.
To reach the two-thirds threshold, the consultant advised the Council to lower the tax amount and "launch a community outreach and education campaign to build awareness and support."
The Council should also "refine the ballot language to emphasize high-priority uses" and "clearly state that funds will be used exclusively in Santa Monica."
The potential tax measure comes as the City faces a projected structural General Fund operating deficit of $29.6 million in the fiscal year starting in July.
According to the staff report from the City's Finance Department, Santa Monica's economic foundation "has weakened" after the coronavius shutdown nearly six years ago.
"Since then, the City has faced compounding challenges: rising public safety concerns, growing homelessness, high retail and office vacancies, deferred maintenance, and declining public trust," staff wrote.
Meanwhile, the City's reserves have "eroded from $435.8 million in free cash on July 1, 2018, down to roughly $158 million," according to a staff report to the Council in October.
"While the erosion of the City’s cash position is largely attributable to childhood sexual-abuse settlements -- totaling nearly $230 million to date-- it is clear that the City’s fiscal strength has been severely depleted during the past 5 to 7 years," the staff report said.
The potential parcel tax would come two years after local voters approved three funding measures in November 2024 by commanding margins.
Measure F restructured the City's business taxes to fund essential municipal services, Measure K imposed a tax hike on private parking lots to boost public safety funding, while Measure QS, a $495 million School bond, provided funding to improve and replace District facilities.
Two years earlier, Santa Monica voters approved three new taxes that were estimated to bring in nearly $60 million a year, including a transfer tax hike for properties that sell for $8 million or more to fund affordable housing, homelessness prevention and public schools.
Local voters also joined Malibu voters to approve a $375 million bond to fund improvements at Santa Monica College and help build housing for homeless and low-income students.