Budget deficit and Measure I sales tax
Where it standsThe city projects a $27.6 million deficit and has put Measure I, a 1-cent sales tax for 13 years, and Measure J, a hotel tax increase, on the ballot.
What's on the tableHow to spend Measure I money if it passes, or what more to cut if it fails; staff were told to bring back a reduction plan.
- Measure I would raise about $37 million a year; Measure J would raise the hotel tax from 10% to 14% for hotels with 11 or more rooms, about $3 million a year. City of Orange
- The council voted 5-1 on June 3, 2026 to place the 13-year sales tax on the ballot; Councilmember Bilodeau voted no and Councilmember Gyllenhammer was absent. Orange City Council minutes, June 3, 2026 special meeting · Jun 3, 2026
- A 0.5% sales tax, Measure Z, failed in November 2024 with 28,299 yes votes and 28,792 no votes. City of Orange · Nov 5, 2024
- To balance the 2026-27 budget, the city eliminated and froze $6 million in vacant positions and transferred $15 million from three funds. Voice of OC · Jun 11, 2026
- On Sept. 8, 2026 staff were directed to return with a plan for additional reductions if the sales tax does not pass. Orange City Council minutes, Sept. 8, 2026 · Sep 8, 2026