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Wastrel Orange must step up — or go bankrupt

August 6, 2025

A few years ago, California’s state government and its cities were flush with cash as the feds dumped $600 billion in stimulus funds into the state. Like all good parties, this one couldn’t go on forever. As the spigot closed, inflation spiked (gee, maybe there’s a connection?) and the economy slowed, the state budget went from a whopping surplus to stubborn deficits. Cities struggle to balance their budgets.

Media attention has focused on the travails of big cities such as Los Angeles, but smaller cities might be the canaries in the coal mine. Enter the city of Orange. Last year, the city faced a $19 million deficit—quite astounding for a city with revenues of around $145 million. Like most big-spending officials, the leadership pegged their hopes on a sales-tax increase, but voters rejected it by a narrow margin.

In March the Register reported the City Council hired consultants to analyze the situation. That was a responsible idea, even though everyone knew the problem. It wasn’t about fraud. The city simply spent too much money. Orange recently approved significant pay hikes for police. Opponents of the sales-tax boost noted Orange officials had increased overall spending 20% over two years. Giving spending addicts more money won’t fix the underlying problem.

The city’s cuts—mostly impacting public services rather than trimming bureaucracy—didn’t close the gap. The consultants’ recent conclusions were revealing. As one consultant explained per a news report: “They took $28 million in COVID funds, which is a one-time payment, and hired 39 individuals. That accounts for about $19-million a year. The unfortunate implication of that is a long-term unfunded problem that the city now faces. The check has now come due.”

The consultants warned of bankruptcy within three years if Orange doesn’t radically change its ways. Councilmembers talked about increasing commercial zoning to lure new taxpaying developments. That’s fine enough, but Orange—and other fiscally strapped cities—don’t need gimmicks. They need to master the basics of managing budgets with an eye toward providing efficient services rather than placating public-employee unions.

Orange County Register

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Wastrel Orange must step up — or go bankrupt

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