Santa Monica marks one year of Realignment Plan: city stabilizing, now turning toward revitalization
October 15, 2026 4:36 PM
SANTA MONICA, Calif. (Oct. 15, 2026) — One year after the City Council adopted the Realignment Plan to stabilize Santa Monica’s finances and restore core services, the city reported this week that the organization reached full sworn police staffing for the first time in more than 20 years; saw unsheltered homelessness reduce by 18%; tripled the amount of debris cleared from its streets and beaches; and improved its General Fund finances significantly such that the city is on track to achieve a balanced operating budget by July 1, 2027.
When the Council adopted the plan in October 2025, Santa Monica faced an ongoing General Fund deficit, staffing shortages across city departments and visible decline in its streets, parks and Downtown. The Realignment Plan’s first job was to achieve stability by restoring basic services and putting the city’s finances on solid ground before turning to revitalization.
The one-year update, presented to the Council on Oct. 13, illustrated that the Realignment work is taking hold in ways that residents, businesses and visitors can see.
- Safer. The Police Department is at full sworn staffing for the first time in more than two decades. A new Downtown Police Substation at Santa Monica Place has been open since May, and the City Attorney's Office now files about 91% of eligible cases, up from roughly 65% to 70% a year ago. An agreement with Metro allowing Santa Monica police to patrol every E Line platform in the city is nearing execution.
- Cleaner. A new Downtown and Beach Maintenance Division is in place, and the city's Homeless Support Team now operates seven days a week, clearing 790 tons of debris from streets, beaches and public spaces over the past year, compared with 254 tons in all of 2024. The $3.5 million Downtown capital improvement program is about 80% complete.
- More people housed. The 2026 Point-in-Time Count showed unsheltered homelessness down 18.1%. Over the past fiscal year, 72 people moved from the street into interim housing and 107 were reunited with family through Project Homecoming. In July, the Council adopted a Housing Focused System of Care that replaces the congregate shelter model with a city-controlled continuum of housing.
- Local economic revitalization efforts supported. The city loosened regulations on the Promenade to more types of restaurants, created Entertainment Zones in four business districts, and cut months of processing time and about $20,000 in fees for restaurants seeking to serve alcohol. On-time first-round plan checks rose from 51% to 87%.
- Finances on track. The city planned to draw $34 million from reserves to close fiscal year 2025-26 but needed $26.7 million – $7.3 million less than budgeted. New revenues and cost savings now total about $28.8 million a year, above the original $24 million target, and the operating gap, excluding capital investment, stands at $4.3 million. The city remains on track for a balanced General Fund operating budget by July 1, 2027.
“This past year has been about getting Santa Monica back on solid footing and delivering on the commitments we made to our community,” Mayor Caroline Torosis said. “We are seeing the results in safer neighborhoods, cleaner streets, the early signs of a Downtown comeback and a healthier financial outlook. There is still work ahead, but the Realignment Plan is creating the foundation for Santa Monica's next chapter.”
The Work Ahead
The one-year Realignment Plan update also spoke to the work that still needs to occur in Santa Monica. Private investment in the city, especially Downtown, has not yet returned at the scale needed. The General Fund is not yet balanced without drawing on reserves, and the city’s first Employee Experience Survey identified clear areas where employees want to see improvement, including communication, staffing, workload and compensation. Each is a focus of the plan's second year.
With the Realignment Plan foundation in place, the work of the city is pointing towards a need to focus on revitalization.
- A better Downtown arrival experience, beginning in November with ticketless license plate-based entry at three city parking structures and valet service on the Promenade, operated and funded by the city’s parking partner, Metropolis.
- A Downtown Catalyst Incentive Program focusing the city's $3 million Economic Development Fund on a small number of high-visibility projects around the Promenade.
- A capital refresh of Third Street Promenade ahead of the 2028 Olympic Games, with a concept plan coming to Council in early 2027.
- Continued work to re-tenant Santa Monica Place, put city-owned Downtown land to use, advance the Airport Conversion Project and expand the city’s affordable housing pipeline.
The city will share more on each of these efforts in the coming weeks.
Progress on every Realignment Plan commitment is tracked publicly through the Santa Monica Scorecard. For more information, watch the Oct. 13 City Council meeting online.
Media Contact
Tati Simonian
Public Information Officer
Tati.Simonian@santamonica.gov
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