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InsighthubNews > Politics > The iconic Santa Monica faces economic disasters, partly due to sexual scandals
Politics

The iconic Santa Monica faces economic disasters, partly due to sexual scandals

September 21, 2025 5 Min Read
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It was a city and marked a fictional finish line.

Santa Monica sits easily within the iconic Pantheon of Southern California communities thanks to a combination of weather, beach background, energy and familiarity.

But that lore was cut down by sexual scandals, stagnation and, more recently, another bubble-blown calamity.

My colleague and his Santa Monica are on the verge of a financial crisis as sexually abused settlements emit cities.

The focus of their article is how Santa Monica fell into this predicament and the measures it takes, including cuts to improve this situation.

Let’s take a look at their reports.

One man’s rampage

The city is still facing 180 sexual abuse allegations by former Santa Monica police dispatchers. This is a scandal that has already been paid for a $229 million settlement.

Eric Uller, a former city dispatcher in the city, often travels in unmarked police vehicles or his personal SUV.

According to a Times review, Uller continued to work with his children despite revealing that he was arrested as a teenager for abusing a toddler, despite his background check in 1991.

That wasn’t the case. He died of suicide in November 2018.

On Tuesday, the city declared it was in financial distress. This is a move that has sparked concern among urban workers, where cuts, and perhaps layoffs, are coming.

“The financial situation the city is handling is certainly serious,” mayor Oliver Chi said at a city council meeting Tuesday.

As worries among city workers peaked, Qi emailed all city employees before Tuesday’s meeting, with no layoffs planned.

Santa Monica’s recently approved budget for 2025-26 forecasts revenue of $473.5 million, but costs $484.3 million, and city officials fear that the sexual abuse scandal could continue to drain the financial resources of cities already shaking from the recession.

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More than just a sex scandal

Current and former officials said current financial distress had taken shape several years ago.

“I know that Santa Monica has failed to govern for years with unnecessary spending and this financial crisis has been looming for some time,” said Phil Brock, former mayor of Santa Monica, who lost his seat in the November election.

The city is facing a sharp decline in tourism and retail revenue, Brock said, along with several businesses that have left downtown and the Promenade.

“You may have to do the right side service and you may need to see areas where (city) may be covered,” he said. “I recommend going back to basics.”

Remove panic

Santa Monica officials had moves that caused certain measures to be taken by the city, such as cutting and immersion in reserves.

However, the declaration, voted on Tuesday, sought a declaration of “financial distress” instead. He said this was intended to provide support as a tool to help the city communicate its financial situation with other agencies and seek grants and other funds to tackle “restructuring urban operations.”

One city official who asked them not to name because they were not allowed to talk about the records said employees were skeptical of what steps the city would take and whether it would mean cutting their wages and benefits.

The steps set up to take exactly the city remains unknown.

Whatever happens next in Santa Monica, our reporters will be there to document. For now,.

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Have a great weekend from the Essential California team

Jim Rainey, staff writer
Andrew J. Campa, reporter
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