California voters are in no mood for higher taxes, according to the results of four local elections held this week in different parts of the state. The measures included a telephone tax to fund "911" services and three hospital bonds that would have resulted in higher taxes on voters' property.
The specifics:
· Santa Cruz voters rejected Measure T, which called for a $3.49 monthly tax on phone service, including cell phones, to raise an estimated $1.2 million for "911" emergency response. The tax was put on the ballot by city officials who hoped to replace a $1.81-a-month tax that had been enacted without voter approval. The previous tax was similar to a Union City assessment that was found by the courts to be illegal because it hadn't gone before the voters, as required by the state constitution.
Measure T needed more than 50 percent of the vote, and garnered just 49 percent in an all-mail election. Only 9,701 of the city's 34,322 registered voters returned their ballots, according to unofficial results announced August 26. Election officials said they do not expect the result to change as they perform a required recount before certifying the results. (Cal-Tax: Although the tax was described as being necessary to fund "911" services, it was not written to specifically fund those services. This lack of specificity meant the measure required a majority vote rather than a two-thirds vote, but it also prompted the Santa Cruz County Business Council to oppose the tax.)
Santa Cruz Mayor Ryan Coonerty said money from other programs will be shifted to the "911" program: "This is a devastating blow to our city budget. The department heads will be meeting (August 27) to discuss what cuts in police and parks and rec we have to make." This fiscal year, the city is slated to spend $5 million more than it expects to collect in revenue.
Voters rejected the measure despite the city's use of tax dollars to campaign for the tax increase. The city used tax dollars to prepare, print and mail a slick campaign-style "informational brochure" that focused on how the measure would "protect against cuts in critical City services for public safety and emergency response." The only mention of the tax amount was buried in fine print and described in somewhat deceptive terms. The brochure included full-color action photos of dispatchers and paramedics at work. (Sources: Santa Cruz Sentinel, August 27; City of Santa Cruz brochure.)
· In Oceanside, voters rejected Proposition A, a $589 million bond measure that would have paid for expansion and upgrades of the Tri-City Medical Center. The bond would have resulted in a tax increase on local property at the rate of roughly $22 for every $100,000 of assessed value, for approximately 40 years. The measure needed a two-thirds vote, but received just 62.4 percent in support. Proposition A represents the city's third failed attempt in two years to pass a bond for the medical center. The measure was opposed by a group called Stop Taxing Us, and by the Minutemen, which argued that the hospital treats too many illegal immigrants, at taxpayers' expense. A spokesman for Stop Taxing Us said his group spent about $2,000 on the campaign, while the "yes" side spent about $700,000.
The election was a vote-by-mail election, but voters also were allowed to drop off ballots at a collection point set up by the city registrar just outside the hospital's entrance. Representatives of the No on Proposition A campaign reported that they videotaped several cars driving up to the collection site and handing over two or more ballots, despite election laws that say each ballot must be returned by the voter unless that voter is ill or disabled. (Source: North County Times, August 26; San Diego Union-Tribune, August 27.)
· In Salinas, voters rejected Measure W, which asked for a $392 million bond for improvements to the Salinas Valley Memorial Hospital. The bond, which would have added to residents' annual property tax bills, needed a two-thirds vote but received just 52 percent in support. Of the 64,300 ballots sent to voters in the all-mail election, only 20,500 were returned. Brett Landon, a member of the Salinas Valley Taxpayers Union, said voters didn't want to raise their taxes, and added that the hospital administrators "need to pare down their plans more reasonably." (Source: The Salinas Californian, August 27.)
· In Oakdale, voters defeated Measure Q, which proposed a $27 million bond to pay for changes at the Oak Valley Hospital. The measure needed two-thirds approval, but received just 57 percent of the vote. Measure Q received less support than an identical measure that was defeated just a few months earlier – in April, Measure O narrowly failed, receiving 65.4 percent of the vote. Measure Q would have added to property tax bills at the rate of $12.13 per $100,000 of assessed value, for 30 years. Homeowners already are paying for a $37 million bond passed in 2004 to build a replacement for the 35-year-old Oak Valley Hospital. On the Modesto Bee's website, a reader commented: "I voted for this measure back in '04, but not either time this year. Why? BECAUSE THEY HAVE DONE NOTHING IN THE LAST 4 YEARS TO BUILD A NEW HOSPITAL! It's insulting to be asked for more money when nothing appears to be getting done!" (Source: Modesto Bee, August 27.)
Cal-Taxletter August 29, 2008
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