By Becky Steinbruner
Don’t be fooled by promises making you think this new Countywide half-cent sales tax would focus on saving local emergency medical care. In truth, the County would have no restrictions whatsoever on how the anticipated annual $27 Million would be spent.
The County’s history of empty promises merits no trust.
Although the problems associated with HR-1 loss of federal funding are real for many residents in the County, half of whom live in the Pajaro Valley, this regressive tax is no solution.
Measure E would hurt those most who are already struggling to make ends meet, especially those in the Pajaro Valley, where the sales tax would leap to 10.25%. Purchases in unincorporated areas would be taxed at 10%.
Measure E would cause a 10.25% spike in sales tax in the City of Santa Cruz and Scotts Valley. It would harm the homeless, who depend on prepared food, which is taxable. Because pet food is taxable, homeless people owning dogs for companionship and protection will struggle more to feed them.
Residents throughout the County will likely increase online shopping for larger purchase items, such as electronics, appliances, clothing, vitamins, books and school supplies, further harming our local businesses. Those purchasing autos, including EV’s, will likely look outside the County first.
The CEO will need Measure E’s windfall to address pressing problems other than HR-1.
Santa Cruz County government has great debt liability advancing in the near future due to the unprecedented $80 Million borrowed last year, just to make ends meet.
This year, Supervisors approved withdrawing $43 Million from reserves to balance the budget, bringing reserves dangerously low.
The County’s unfunded employee pension liability payments loom large with that liability valued at $628.7 million, and is expected to climb higher.
However, despite gloomy economic forecasts, County Supervisors approved 4% salary increases for all County employees, including middle management staff, many having annual salaries approaching half a million. Current SEIU contract guarantees a 3.5% salary increase next year. Supervisors evaded possible contract re-negotiation by taking “urgency” action, rather than “emergency”, evidence that Measure E would likely be used to fund future larger salaries.
After placing Measure E on the ballot, Supervisors showed poor leadership in approving new procedures to give themselves a salary increase.
If Measure E were approved, no accountability exists, including for the many non-profits in line for funding to demonstrate actual public benefit, and not simply supporting high salaries of those CEO’s. One example is the Santa Cruz Community Health Care CEO’s salary of about $300,000 annually.
Santa Cruz Community Health Centers | Santa Cruz, CA | Cause IQ [www.causeiq.com/organizations/santa-cruz-community-health-centers,237428303/]
Nicole Coburn
County CEO Nicole Coburn cautioned Supervisors against restricting allocation of Measure E’s anticipated annual $27 Million, even though Santa Cruz Mayor Keeley begged for some guarantee the City’s homeless services would be assured funding. What a sly tactic to keep Measure E a broad tax to bolster the County General Fund, allowing a green light upon 51% of the voters.
If the County were sincere in addressing future impacts of HR-1, the sales tax would be dedicated to only that use, and would require 2/3 voter approval. In 2024, Measure N accomplished just that, to fund the Pajaro Valley Health Care District and Watsonville Hospital.
The County has established a pattern of ballot deceit.
In 2018, voters approved Measure G, a “temporary” half-cent sales tax for 12 years promising “To continue funding 9-1-1 emergency response, paramedic, sheriff, fire, emergency preparedness, local street repairs, mental health services, homelessness programs, parks, economic development and other general county services” and provide approximately $5,750,000 annually.
The 2021-2022 County Civil Grand Jury investigation deemed Measure G ballot language “misleading” [www.santacruzcountyca.gov/Portals/0/County/GrandJury/GJ2022_final/2022-4_MeasureG_Report.pdf]
That revenue stream will end in 2030.
In 2024, voters approved Measure K, a permanent half-cent sales tax in the unincorporated area “To fund essential Santa Cruz County services, including wildfire response/prevention/recovery; affordable housing to support working families and frontline workers including nurses, emergency responders, and educators; mental health crisis programs for children/vulnerable populations; substance abuse programs; improved public safety, road maintenance/pothole repair, parks/recreation; and programs to reduce homelessness” providing approximately $10,000,000 annually.
Because the County allowed voters in the four cities to vote on this even though not affected by the tax, the County was sued, resulting in settlement mandating the money be spent within the unincorporated area and held accountable for allocations.
County leaders have mismanaged the money we have, spending wildly on a new South County Government Center real estate purchase and expensive remodel.
The facility sees little use, not even a Board of Supervisor meeting. Other wasteful pet projects include complete remodel design for the 701 Ocean Street government building, and Court House demolition study to build market rate housing.
Clearly, we cannot trust the County to fulfill any Measure E campaign promises.
Don’t be fooled. Vote NO on Measure E.
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Supporters of Measure E declined to comment prior to deadline.