Santa Cruz Budget Portal
Making city finances readable - Where your tax dollars go in Fiscal Year 2026
The Big Picture
Total Budget FY 2026
Status Quo Budget: Modest 2.5% increases for discretionary budgets. The $158.9M General Fund is completely balanced.
General Fund: $158.9 Million
The primary pool of money for core city services like police, fire, parks, and administration.
Where the Money Comes From
Where the Money Goes
Tax Reality Check
Property Tax Distribution
$16.20
For every $100 in property tax, the City keeps only $16.20
The rest goes to schools, county, and other districts
Sales Tax Distribution
$0.23
For every $1 in sales tax, the City keeps $0.23
The remainder goes to state and other local governments
New Revenue Streams
Measure L
½¢ Sales Tax
Expected to generate up to $8 million annually
Voter-approved for maintaining financial stability
Measure Z
2¢ per Ounce
Sugar-sweetened beverage tax
Supports community health programs
Capital Investment Program: $109.6 Million
Long-term infrastructure and community development projects
Economic Development & Housing
42.4% of CIP budget
Public Works
35.2% of CIP budget
Water Infrastructure
16.9% of CIP budget
Major Projects Underway
Downtown Library & Affordable Housing
Mixed-use development project
La Bahia Resort & Spa
Beachfront redevelopment
Pacific Station North
Transit-oriented development
Santa Cruz Wharf Repairs
Storm damage restoration
City Operations
Authorized Staff Positions
No net increase in FY 2026
Rising Personnel Costs
4% Increase
Driven by 9% increase in employee medical insurance and pension liabilities
Economic Outlook & Challenges
Current Challenges
- Inflation and rising interest rates
- Stock market declines affecting revenue
- Shrinking federal funding programs
- 4% increase in personnel costs
Long-term Strategy
- Long-range financial planning
- Full cost recovery for services
- Tourism tax revenue growth expected
- Revenue rebound projected by FY 2029
Projection: While spending may outpace revenues in FY 2027-2028, the City projects revenues will outpace expenses by FY 2029.
Key Takeaways
💰 Balanced Budget
The $158.9M General Fund is completely balanced for FY 2026
🏗️ Infrastructure Focus
$109.6M Capital Investment Program for long-term projects
📈 Future Challenges
Status quo not sustainable - long-term planning essential
Official Data Sources
All budget data presented on this page is sourced from official City of Santa Cruz documents for Fiscal Year 2026.
Primary Budget Documents
Source: City of Santa Cruz Finance Department - Fiscal Year 2026 Budget
Contact: City of Santa Cruz Finance Department | (831) 420-5030 | webmaster@santacruzca.gov