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# SM City Council works toward a balanced budget
- URL: https://www.smdp.com/sm-city-council-works-toward-a-balanced-budget/
- Published: 2003-05-29T15:00:00.000Z
- Updated: 2026-10-23T02:14:50.000Z
- Author: Guest Author
- Tags: Government & Politics, Santa Monica, #archive-import

million through various policy changes, such as taking more of the revenue from hotel bed taxes for the city’s general fund.

“We have a difficult few years ahead, but... this is a survivable situation,” said City Manager Susan McCarthy, adding that “the worst possible approach to the situation we face would be denial.”

> “We have a difficult few years ahead, but... this is a survivable situation.” — — SUSAN MCCARTHY City manager

McCarthy said that’s what is happening in Sacramento right now, where legislators are playing the shell game with various funds. In the end, McCarthy said Santa Monica and local governments throughout California will have to deal with a mounting series of take backs from the state.

Officials currently estimate a shortfall of $4.1 million in state funding for next year.

As parking fines and meter rates continue to climb, residents will likely be asked to approve a series of tax increases to help bail out the city, McCarthy added, signaling increases in hotel bed taxes, sales taxes and business license fees.

Then there are the cuts. The good news, McCarthy said, is that of the 31 positions the city proposes to cut, only four are currently occupied. And of those four positions, one worker is retiring, one is transferring to a different department, one is being promoted and the other plans to resign and return to school.

But McCarthy said another 19 positions will probably have to be cut the following year, and raises for employees, which are currently not budgeted for 2004-2005, will have to be reinstated at some point in order to keep city jobs competitive.

Tuesday’s meeting was the first of three special budget study sessions at City Hall this week. The second session was held on Wednesday night and the last meeting will begin at 6 p.m. tonight.

Council members are expected to adopt next year’s budget at their June 17 meeting.

*Originally published in the Santa Monica Daily Press print edition on May 29, 2003.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/052903.pdf?ref=smdp.com)