Chapman students to see minor effects of Orange budget crisis

Photo Collage by Easton Clark, Photo Editor

Over the summer, the city of Orange hired a consulting firm to perform a budget analysis, which found that the city is expected to go bankrupt by 2031. However, the changes and cuts made will have minimal impact on the students of Chapman University.

“This isn't new news,” Mayor Dan Slater told The Panther. “Quite frankly, it reinforces what we have been saying for the last two years, which is we have a problem.”

Last November, Orange failed to pass an increased sales tax measure, which would have begun to curb the city’s financial situation.

“It was barely defeated by 0.5% of voters,” Slater said. “We probably are going to have to put it out there again next year.”

An increased sales tax would support Orange as it is a “full-service city,” meaning the city funds its own libraries, police and fire departments.

“We like our own police and fire and libraries, but we have to pay for that service,” Slater said. “You get what you pay for.” 

The largest change on the Chapman front is the creation of the Chapman Liaison Committee, which consists of Slater and councilmembers Jon Dumitru and Kathy Tavoularis. This came at the advice of Grant Thornton, the third party who provided the consultation.

“We are going to engage with Chapman University more, and one of the first things I’d like to really focus on is an internship program,” Slater told The Panther.

The Chapman Liaison Committee is one of the few additions the city is making; a large majority of changes are cuts, including all city events that were not self-funded.

“We cut out all the community events in the city (like) the concerts in the park,” Slater said. “Everything else has been taken over by non-profits and foundations with the exception of our third of July celebration.”

Certain city maintenance was also slashed, including the power washing of sidewalks in Old Towne. Additionally, the paid parking measure the city council passed last year is set to begin this fall and will contribute an expected 1.2 million dollars annually to the city’s revenue. But Slater predicts that to be the extent of changes in the heart of the city.

According to Slater, housing developments are going to be a great way to increase city revenue, and cited the possibility of a hotel development across from Panther Village.

Many efforts and projects remain on the horizon for the Orange City Council as they continue to grapple with the significance of their situation.

“I think the Grant Thornton report was a very good wake-up call,” Slater said. “But I’m very confident that the city will not go bankrupt.”