By Jorge Casuso

October 9, 2025 -- A "discretionary" budget that allows the City Council to fund special programs and events is being "pre-committed" to the same entities every year, according to a staff report posted Wednesday.

The item placed on Tuesday's agenda by the City Manager's office recommends that the Council reform how the $137,398 in discretionary funds is allocated and distributed each year.

According to the report, the funds have "supported neighborhood associations, school-related activities, cultural celebrations, and recurring events," including the annual Fourth of July Parade and Martin Luther King Jr. Celebration.

"Over time, however, a growing number of recurring allocations have been pre-committed at the start of each fiscal year, reducing the Council’s flexibility to respond to new or emerging community needs," staff wrote.

In the 2024-25 fiscal year that ended on June 30, approximately $95,000 of the discretionary budget was "pre-allocated to ongoing commitments."

That left only $23,500 available "for truly discretionary allocation by the City Council for the year," staff wrote.

The trend has recurred over at least the past five years, with approximately 80 percent of "supposed" discretionary allocations supporting "the same recurring events and organizations," according to staff.

To "restore flexibility" and make the funding truly discretionary, staff is proposing that the Council make the following changes:

• Shift the recurring allocations for long-standing community events and sponsorships into the City’s operating budget;
• Establish a clearer, more equitable framework for Councilmember participation by allocating a portion of discretionary funds to each of the seven Council members; and

• Review allocations every two years to identify additional programs that could be moved into the City’s base budget or designated as “Signature Events.”

The events, programs and entities that have been repeatedly funded each year include Business Improvement Districts ($29,000), Samohi Grad Night ($20,000), the Fourth of July Parade ($15,000), Santa Monica Pride ($10,000) and the Martin Luther King Jr. Celebration ($9,000).

"Under this approach, recurring allocations would be permanently funded through the City’s base operating budget, while the City Council’s discretionary fund would be increased," staff wrote.

Each Council member would be given $20,000 in available discretionary funding from a total budget of $140,000, slightly up from the current $137,398, according to staff.

"This structure maintains Council oversight and voting authority over allocations while providing more transparency, equity, and responsiveness in future decision-making," staff wrote.