The Santa Monica City Council declared a state of fiscal distress Tuesday night amid mounting financial pressures. The resolution is designed to help the city secure federal and state funds. City services will not be impacted.
Santa Monica’s fiscal challenges are the result of a multitude of factors. These include revenue declines from the COVID-19 pandemic, tariffs, deportations, declining tourism, and increased liability payouts.
The city has doled out more than $229 million in sexual abuse settlements stemming from allegations against former police dispatcher Eric Uller. Another 180 claimants are still expected to come forward. Uller died by suicide in 2018 after he was charged with multiple counts of molestation.
The resolution to declare a state of fiscal distress passed with unanimous support. Read more here.