Ballot arguments for and against San Diego’s proposed 1-cent sales tax hike paint starkly different pictures, with ers focusing on a dire need of road repairs while opponents focus on city mismanagement.
The roughly 300-word arguments, which appear in sample ballots mailed to all city voters, can be crucial to whether a measure es or fails, because they might be the only information many voters get about it.
While the statements will be seen only by voters in the city of San Diego, they are similar to arguments frequently made for and against sales tax increases — and 10 local cities have sales tax increases of varying size on the ballot Nov. 5.
The argument in favor of the San Diego tax hike, which appears on the ballot as Measure E, calls it a “neighborhood improvement measure” that would provide millions for roads, infrastructure, emergency response and storm preparation.
“Tired of bad roads, sidewalks and streetlights that don’t work?” the pro argument says. “With Measure E we can quickly begin to fill potholes, resurface roads, fix streetlights and improve our neighborhood infrastructure.”
The pro argument — which was written by Mayor Todd Gloria, Councilmember Raul Campillo and two city labor unions — also promises better emergency response times and flood prevention.
“Measure E will help improve emergency response times by upgrading police, fire protection, paramedic and 9-1-1 equipment and facilities,” it says. “Measure E will also allow us to upgrade and maintain the city’s storm water infrastructure to prepare for flooding and improve water quality.”
The argument against Measure E cites past examples of city mismanagement, contends taxes are already too high and says the money will cover pay raises and pensions for city workers.
“Don’t let the city of San Diego continue wasting your hard-earned tax dollars,” the argument says. “The city can’t even read your water meters correctly and they’re squandering money on bad real estate deals.”
The con argument, which was written by the San Diego County Taxpayers Association and two former city officials, is referring to well-publicized problems with water bills and the city’s hundreds of millions of dollars spent on a large downtown office building that remains unusable because of asbestos.
The argument against the measure contends that high taxes haven’t helped solve the city’s problems, so raising them even higher won’t help.
“Critical issues like homelessness, road conditions and stormwater management continue to worsen,” the argument says. “That’s not because we aren’t paying enough. It’s because the money goes to the wrong places in ridiculous amounts. Don’t let the politicians blame you for the problems they should have solved.”
The argument also stresses that city officials could spend the money generated by the tax increase on anything they want, including workers pay raises and pensions.
“The appetite for pay raises and government workers’ expensive retirement plans gets bigger and bigger,” the argument says. “We can’t afford to keep funding their unchecked spending.”
The argument in favor, in addition to touting what the money from Measure E would be spent on, stresses that none of the money would go to Sacramento.
The measure would raise the city’s sales tax rate from the lowest in the county at 7.75 percent to the highest at 8.75 percent, the rate in other local cities like Chula Vista, National City, Del Mar, Solana Beach and Imperial Beach.
A November ballot measure in El Cajon would bring that city’s rate from 8.25 percent to 8.75 percent.
Cities that approve full-cent surcharges are essentially doubling the sales tax revenue they receive.
That’s because of the 7.25 percent statewide sales tax, 6.25 cents on every dollar go to Sacramento, while 1 cent stays with the local jurisdiction. By adding a full cent, a city doubles the local take from 1 percent to 2 percent of all sales.
The rate in San Diego County is 7.75 percent instead of 7.25 percent because of a half-cent countywide increase for transportation projects that’s been in place for decades. A countywide measure on the November ballot seeks to double that county take to a full cent.
Many sales tax measures include sunset clauses, and the ballot argument against San Diego’s Measure E says it should have included such a clause, which would mean the tax would expire if not re-approved by city voters in the future.
“Given the city’s history of management blunders, you’d expect some humility,” the argument says. “The city’s leadership thinks they deserve our trust indefinitely without an end date.”
Sample ballots will also include a fiscal analysis written by the city’s independent budget analyst and an impartial analysis written by the city attorney. No counter arguments to those will be included.
The fiscal analysis says the measure would generate estimated additional revenue between $360 million and $400 million during its first year.
The analysis says the money is needed to avoid deep budget cuts. It says San Diego has a $200 million “structural deficit” and that one-time efforts to balance this year’s budget can’t be repeated.
“When those actions expire after this fiscal year, the city will lack the ongoing funds needed to its current operations and will continue to be unable to address its infrastructure backlog,” the fiscal analysis says. “Balancing future budgets would require the city to make more severe and permanent operational cuts, while the city’s infrastructure backlog would continue to grow.”
The analysis by the city attorney notes that from only a simply majority of voters is required for approval because the revenue won’t be devoted to a specific purpose, which would require two-thirds approval.
It also notes that the new tax rate would take effect after the results of the election are certified in December, but that collection of the tax isn’t expected to begin until April 1, 2025.
The delay will allow businesses that charge sales tax time to update software and make other necessary changes.
The ballot arguments, fiscal analysis and impartial analysis won’t be final until the period for raising objections closes. For the ballot arguments, that period ends Sunday. For the other documents, it ends Friday.
If someone objects or requests amendments, a court hearing is typically held to determine next steps.
The two labor unions that signed the pro ballot argument represent city police officers and firefighters.
The two former city officials who signed the opposition argument are City Councilmember Scott Sherman, who served from 2012 to 2020, and Ronne Froman, who served as the city’s chief operating officer from 2005 to 2006.
