Santa Barbara County is projecting that there will be an $11.9 million budget surplus by the end of the fiscal year.
At a recent Board of Supervisors meeting, county officials reported tax revenues $10 million over budget.
Kelsey Buttitta with Santa Barbara County said the surplus is in part due to higher revenues from transient occupancy and sales taxes. Voters raised the transient occupancy tax from 12% to 14% in January, affecting hotels and short-term rentals.
However, Buttitta said there is one main factor.
“The biggest driver we are seeing for having this surplus is property tax revenue,” Buttitta said. “Compared to what we had forecasted, property tax revenue is exceeding our initial expectations, which is giving us an increased surplus.”
Despite the surplus, Buttitta says the County anticipates budget deficits in the coming years. Officials plan to add funds to reserves to help offset a projected shortfall in the 2026-27 fiscal year.
Some surplus funds will also go toward capital improvement projects and other one-time expenses.
The County will hold budget workshops in April, where individual departments will present their funding needs to the Board of Supervisors.
