The city of Fullerton is grappling with a significant financial crisis, facing a projected $13.7 million deficit for the fiscal year 2026-2027. Fullerton’s financial stability has eroded, leaving officials scrambling to address mounting fiscal challenges. How did this happen?
In the wake of the Covid pandemic shutdowns, Fullerton’s budget, which originally stood at approximately $110 million, faced a $10 million deficit in 2021. Revenue declines forced the City Council to implement severe cuts, resulting in the layoff of 156 non-regular (part-time) employees and 7 full-time employees. Essential services, including parks, libraries, and the Fullerton Museum Center, were adversely affected.
While all councilmembers agreed that decisive action was necessary to address the city’s ongoing structural deficit – they differed on how to accomplish that. Councilmembers Ahmad Zahra and Jesus Silva opposed cuts that would harm staff and core services.
Fullerton’s City Council majority voted in April 2021 to remove City Manager Domer, with Mayor Bruce Whitaker, Mayor Pro Tem Nick Dunlap, and Councilmember Fred Jung in favor, while Councilmembers Ahmad Zahra and Jesus Silva opposed the decision. Zahra considered Domer ethical and believed that replacing him wouldn’t address the city’s financial issues. He expressed a preference for the council to provide guidance rather than to dismiss the city manager. The dismissal without cause, as laid out by the city manager’s contract, triggered nearly $200,000 in severance pay. Whitaker also noted that all three of the Councilmembers who supported Domer’s dismissal also opposed Measure S, a proposed 1.25% local sales tax increase to bring in recurring revenue…