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Headlines Show How Santa Monica Overspent

05/01/2020 7:51 AM | Margaret Fulton (Administrator)

As Santa Monica prepares to make the most radical cuts in staffing and services in its 145-year history, here are some of the headlines that help explain how it got into such a deep financial hole before the coronavirus pandemic struck.

SMa.r.t. Column: The Budget Hits The Fan!

05/01/2020 7:51 AM | Margaret Fulton (Administrator)

Wow! Our city faces unprecedented amounts of high drama over the next seven weeks as a byproduct of the COVID-19 crisis. Our city manager “offered” his resignation. It was accepted, and our “wise” city government bought him out for $200,000. Oh, and as an extra perk, they kept him on the payroll until July 1. As a result, he finished with five years of employment in Santa Monica. That benchmark allowed his lifetime pension amount to skyrocket. Our city manager bails from the city’s COVID-19 related budget issues and walks away with a fistful of cash, from our town’s depleted treasury. Residents are incensed, and the axed city staff livid.

The Shock Doctrine in Santa Monica

05/01/2020 7:40 AM | Margaret Fulton (Administrator)

Victor Fresco

Recently, pro-development group Santa Monica Forward sent a letter to our City Council suggesting what they would like the City to do in response to our budget crisis.

Reading it we were reminded of Naomi Klein’s seminal work, The Shock Doctrine, wherein Ms. Klein posits that crises are often used as tools by those with power to push through agendas they had long sought but were unable to achieve through democratic means. A crisis provides the disruption and turmoil powerful interests need to accomplish long sought but unpopular goals.

Renters will have 12 months to repay unpaid rent

04/30/2020 5:52 PM | Margaret Fulton (Administrator)

The city of Santa Monica extended its moratorium on residential and commercial evictions to June 30, city officials announced Thursday.

The order also extends from six to twelve months the time tenants have to pay rent they were unable to pay. City spokesperson Constance Farrell said the city extended the moratorium and deadline in response to the deep economic impacts of COVID-19 and public health projections that indicate people will be required to remain at home.

Santa Monica to merge departments and lay off staff

04/30/2020 10:46 AM | Margaret Fulton (Administrator)

The city of Santa Monica will merge several departments and lay off staff as it moves to reduce its budget amid a sharp decline in revenues.

The city relies on tax revenue from sectors such as retail and tourism that have been devastated by stay-at-home orders. By June 30, the end of the fiscal year, the city will have a $72 million General Fund shortfall. Next fiscal year, projections show a nearly 40% drop in city revenues and a $154 million General Fund gap. Officials will release a proposed plan for organizational restructuring and budget cuts Friday that City Council will vote on Tuesday.

On Wednesday, Interim City Manager Lane Dilg shared some details of the plan in a videoconference with city staff.

City Council Adopts Resolution for Public Comments

04/30/2020 10:43 AM | Margaret Fulton (Administrator)

At its meeting last night, the Santa Monica City Council voted to adopt a resolution to temporarily amend its Rule of Order and Procedure 15 regarding public comment to reflect new procedures under which members of the public will be able to call into teleconference meetings to provide oral comment. The May 5 City Council meeting will be the first with the new procedures and the new rule.

City Manager Lays Out Plan to Fill "Gaping Holes" in Budget

04/30/2020 10:36 AM | Margaret Fulton (Administrator)

During an online meeting with municipal employees Wednesday, Santa Monica City Manager Lane Dilg outlined a plan to fill "gaping holes" in the budget that includes department mergers and widespread layoffs by May 30.

The plan to address the sudden and devastating financial impacts of the coronavirus shutdown lays off workers by order of seniority, while allowing longtime employees to "bump down" to jobs at a lower classification, both standard practices under union contracts.

Fair Housing and COVID-19

04/30/2020 10:33 AM | Margaret Fulton (Administrator)

By Gary Rhoades

Deputy City Attorney in the Public Rights Division of the Santa Monica City Attorney’s Office.

Our federal, state, and local fair housing laws together prohibit housing discrimination on the basis of several categories, including but not limited to race, national origin, color, religion, gender, disability, familial status, sexual orientation, age, and source of income. During the pandemic, housing advocates and enforcement agencies such as the Santa Monica City Attorney’s Office (CAO), are especially concerned about discrimination based on national origin, disability, and age.

Council Approves Seven Months Severance Pay for Rick Cole

04/30/2020 10:31 AM | Margaret Fulton (Administrator)

Former Santa Monica City Manager Rick Cole, who recently stepped down facing a massive budget deficit, will receive seven months of severance pay after a separation agreement was approved without public discussion by City Council.

Cuts are coming, and we’re all going to feel it

04/29/2020 9:59 AM | Margaret Fulton (Administrator)

All residents, staff and officials should understand this reality: Everyone is going to lose something they love.

Years of infilling our eight square miles produced plentiful buckets of revenue for the city (and more than a few big developers). Rapid growth of tourism to a peak of $2 billion further added to the coffers.

Going forward, cuts are mandatory because the city has allowed programs to bloat when times were unusually good, and even prior to COVID-19 City Council was struggling to adapt to a more subdued economic landscape.