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Santa Barbara loans $4.4 million to employees to buy homes

In an ultimate case of government gone wild, the city of Santa Barbara has given “teacher’s pet” employees money to purchase homes in the expensive seaside community.

The down-payment for home program began in 2001 when the city gave Santa Barbara Police Chief Cam Sanchez a $500,000 loan. Over the years and multiple employees later the city has given city employees approximately $4.4 million to purchase homes.

The city of Santa Barbara, like most California cities, is broke and needs to fill budget shortfalls. As a result the city has cut back on numerous resident services.

The scandalous program caught the eye of council members and watchdog groups who are outraged the city has not made a better attempt to recoup taxpayer money, according to the Daily Sound.

The severe budget crisis has already forced community leaders to close city pools and libraries while the 37 employees enjoy their homes on the taxpayer dime.

“The whole thing is nuts,” says Ernie Salomon a Santa Barbara City Hall watchdog. The money used for the loan program was taken from the city’s reserve general fund, according to Solomon. “It’s unforgivable.”

Responding to the criticism surrounding the city loans was Bob Samario, Santa Barbara finance director. “At the time we weren’t having the financial problems that we are having today.”

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