Request a demo and Enjoy a Free Trial
Fiscal Committee Rejects Tax Options Amid Projected $13.7M Deficit

Fiscal Committee Rejects Tax Options Amid Projected $13.7M Deficit

Fullerton, California
MacroPolicy

Fullerton Committee Addresses $13.7 Million Deficit, Rejects Sales Tax

The Fullerton Fiscal Sustainability Ad Hoc Committee met recently to address a projected $13.7 million operating deficit for the 2026-27 fiscal year. Despite warnings from city staff that the General Fund balance could drop to $2.31 million by year-end, the committee majority rejected pursuing a general sales tax. Committee members, including Erik Wehn, argued that residents are already burdened by high costs of living and cannot sustain additional taxes.

Instead of identifying immediate expenditure cuts, the committee voted to explore long-term strategies such as selling or restructuring the city’s water system and potentially the Fullerton Airport. Deputy City Manager Daisy Perez noted that these options do not align with the immediate June budget deadline. Staff warned that a ‘cuts-only’ path would require a 10% reduction in expenditures, potentially leading to the closure of two fire stations and the elimination of 14 police officer positions. The city remains at a crossroads as it approaches the mandatory budget adoption date next month.

More from Fullerton