Flex Funds

Glenn Church, a member of the Measure AA committee, noted flexibility in spending: “The big thing we’re bound by is that it’s unincorporated areas and public benefit.”

Last year, voters in unincorporated Monterey County approved Measure AA, a 1-percent sales tax. As the County Board of Supervisors held budget hearings throughout the first half of 2025, the question of how much money AA would generate and how exactly that money would be used came up frequently, but was never answered.

The answer began coming into focus on Tuesday, Aug. 26 from an ad hoc committee, led by supervisors Glenn Church and Chris Lopez. They confirmed that the funds would be directed toward new projects (rather than ongoing commitments) and would be assessed quarterly starting in fiscal year 2026-27.

“We’re still developing a process,” Church said.

He explained that the funds must be spent in unincorporated parts of the county and can be used for any general government purpose, such as roads, parks and public safety.

Projects prioritized this year include $1.5 million to support AXON body cameras for the Monterey County Sheriff’s Office; $50,000 to support initiatives led by the new ag tech startup The Reservoir; and $50,000 to support Regenerative California’s blue economy and fisheries programs.

Lopez emphasized that, although the funds are not legally restricted to specific uses, public polling identified clear priorities that he believes the county should respect. Among the top priorities cited by voters in support of the sales tax were road repairs, reducing homelessness and water and sewer infrastructure improvements.

As the Aug. 26 meeting progressed, first-quarter revenue numbers were coming in in real time. County Administrative Officer Sonia De La Rosa informed the board that while the original projection for April and May was $2 million, updated figures showed revenue was actually between $5 and $6 million for the first quarter. The annual revenue estimate, initially projected at $29 million, was revised down to $24 million. “We’re breaking even now,” Lopez said.

Though there was some disagreement about whether funds should be allocated quarterly or annually, the board unanimously voted for a quarterly schedule, arguing it allows for more strategic planning and avoids committing funds prematurely.

“There’s a lot that is fluid here,” said Church, anticipating a possible boost over Christmas. “We really just don’t know how much we’re going to get this year, [but] these funds are going to be essential.”

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