Santa Ana shouldn’t give raises to executives as the city slides into bankruptcy

Santa Ana is staring down a $30 million barrel. In just three years, the Measure X sales tax will begin to sunset, stripping 22% of our general fund revenue. Our city council’s response? Proposing annual salary range boosts for top executives tied to the Consumer Price Index (CPI), expanding sick-leave cash-outs, and granting the city manager the power to hand out six-month severance packages.

This isn’t just “keeping up with inflation”—it’s a betrayal of fiscal responsibility at a time when we should be tightening our belts.

The Fiscal Reality: A “D” Grade for Health

While officials argue these raises are needed for “retention,” the numbers tell a different story. Santa Ana currently holds an unenviable position in Orange County’s financial rankings:

• The Debt Burden: According to Truth in Accounting, Santa Ana received a “D” grade for fiscal health, with a “taxpayer burden” of approximately $5,300 per resident to cover city debts.
• The Neighborhood Comparison: Compare us to our neighbors. Irvine is consistently ranked the healthiest city in the nation with a $4,100 taxpayer surplus. Even Anaheim, which has faced its own struggles, maintains a lower debt-to-asset ratio in recent recovery years than Santa Ana’s projected trajectory.
• Spending Outpaces Revenue: Our municipal spending is already outpacing revenue, creating a projected deficit that could reach $129 million in a decade if left unchecked.

Rewarding the Top While Services Teeter

The proposed resolution doesn’t just increase ranges; it adds layers of “perks” that the average Santa Ana resident—struggling with their own bills—could only dream of.

• Longevity Pay: The Police Chief, already the city’s highest earner at over $364,000, would receive additional longevity pay.
• Severance Discretion: The City Manager would have the discretion to grant six months of severance to departing managers—essentially a golden parachute funded by taxpayers.
• Sick Leave Cash-Out: Allowing executives to cash out sick leave upon departure is a long-term liability that further bloats our unfunded pension and benefit obligations, which already stand at hundreds of millions.

A Question of Priorities

Council members argue these raises aren’t “automatic”. But by raising the range, they ensure that when the “belt-tightening” finally starts, the people at the top are protected by higher floors, while the rest of us face cuts to libraries, parks, and public safety.

If the city truly needs to “take care of its workers,” it should start with the frontline staff and the services that keep our neighborhoods safe and clean. Rewarding the highest-paid employees while the Measure X “tax cliff” looms is not leadership—it’s a lapse in judgment.

The City Council must vote NO on this resolution. We cannot afford to fund executive luxury on a “Walmart budget”.