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Santa Monica could declare fiscal emergency

Santa Monica faces a $229 million liability from sexual abuse settlements and a 26.8% drop in General Fund Revenue, prompting a fiscal emergency declaration vote.

  • On Tuesday, September 9, 2025, a vote will take place regarding a resolution to officially declare a fiscal emergency in Santa Monica.
  • This action follows escalating financial strains caused by declining tourism tax revenue, increased liability costs from sexual abuse settlements, and other fiscal challenges since the COVID-19 pandemic.
  • Santa Monica has spent over $229 million to resolve cases involving sexual misconduct allegations connected to former police dispatcher Eric Uller and is currently facing more than 180 additional claims seeking millions more in damages.
  • The city budget for fiscal year 2025-2026 projects $484.3 million in expenditures against $473.5 million in revenue, with a 23.9% spending reduction eliminating 299 permanent positions, yet services remain below pre-pandemic levels.
  • Declaring a fiscal emergency would authorize officials to take necessary measures to address this crisis, potentially improve grant eligibility, and signal the severity of Santa Monica’s financial condition.
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The Southern California coastal city of Santa Monica will decide on Tuesday (9th) whether to declare a state of financial emergency in light of declining city revenue and rising sexual assault claims. According to a staff report from Interim City Attorney Heidi Von Tongeln, the City Council will consider a resolution declaring a state of financial emergency to allow the city manager to take steps to address the crisis.

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Audacy broke the news in Philadelphia, United States on Monday, September 8, 2025.
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