Budget Instability — Life After Apple Tax Revenue
active• cupertino
For years, Cupertino's finances rested on an unusually lucrative — and legally questionable — tax arrangement with Apple. Following a state audit and more than a year of fiscal uncertainty, the city recently recorded a projected $4.5 million surplus in 2026, but this came after a $30 million loss driven by the loss of Apple sales tax revenue, requiring $23.8 million in service cuts over two fiscal years. The city still faces structural long-term revenue uncertainty, and in March 2026, the City Council directed staff to poll residents on a potential utility users tax increase — the most likely vehicle for a November 2026 ballot measure — as it also weighs rising costs from its Sheriff's Office contract, which could increase from roughly $19 million to nearly $26 million annually.
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Related cause: Budget priorities
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