Orange’s Measure I proposes an additional local sales tax for the 2026 election.

As Orange faces ongoing budget challenges, city officials are urging residents to support a proposed one-cent local sales tax, known as Measure I, which is set to be on the ballot in November. This tax, if approved by voters, would have a duration of 13 years and aims to establish an independent oversight committee to ensure accountability in spending.

City officials estimate that Measure I could generate approximately million annually to support essential city services. These services include public safety, maintenance of parks, efforts to combat homelessness, street repairs, and infrastructure improvements. However, it is important to note that the additional revenue from this tax would not be earmarked for any specific purpose. Instead, the funds would be directed into the city’s general fund.

Supporters of Measure I emphasize that the city has already made significant budgetary adjustments before seeking additional funds from taxpayers. They highlight that more than .5 million has been cut from the city budget, alongside a 10% reduction in staff. Advocates assert that these measures have led to improved efficiency and a commitment to accountability within city operations. They argue that Measure I represents an opportunity to enhance the quality of life in Orange without expanding government.

Conversely, opponents of the measure express concerns about the lack of designation for the revenue generated from the new tax. They argue that without specific allocations, there is no assurance on how the funds will be utilized. Critics assert that Measure I fails to address key financial issues such as structural debt and unfunded pension liabilities. They posit that the funds raised could be used to bolster employee salaries and benefits rather than addressing the city’s pressing needs.

Currently, the statewide sales tax stands at 7.25%, while Orange County residents pay an additional half-cent designed to support transportation initiatives. If Measure I is approved, the total sales tax in Orange would reach 8.75%, making it crucial for voters to consider the potential implications of such a tax increase.

To pass, Measure I requires a simple majority of voter approval. With significant financial stakes involved, the outcome of this measure could have lasting effects on the city’s fiscal stability and the services it provides to residents.