Santa Maria issues hiring freeze over coronavirus economic impact

SANTA MARIA, Calif- The city of Santa Maria has imposed a hiring freeze Friday as it prepares for lower tax revenues and budget cuts as a result of the coronavirus pandemic..

The city is working with federal and state governments for grants and funding to help the city financially. This comes after the city issued a local emergency to obtain more resources.

“This pandemic is sending economic shock waves around the globe and here in Santa Maria,” Public Information Manager Mark van de Kamp said. “The economy’s health or sickness is quickly reflected in the City’s ability to provide services. Consumer spending drives our revenue, which primarily funds public safety. Nearly half the General Fund revenue – 48 percent – is sales tax including the local Measure U sales tax.”

Sales and occupancy taxes have been hurt by the closure of hotels, restaurants and other businesses. Governor Newsom's order for all Californians to stay home has also hurt gas tax revenues.

The Santa Maria City Council will have a presentation at its next meeting focusing on how it is responding to the COVID-19 pandemic on Tuesday, April 7.