G . . . WHAT AM I MISSING?LET’S MEASURE

This morning I read Measure G. Sounds good. More money for emergency services, police training, blah, blah, blah . . . Oh! And youth services. (Wait, did GVRD suddenly stop offering Youth Services?)

Only, that’s not what Measure G says. Measure G is a general tax not a special tax; which means, that these monies go directly into the General Fund and may be spent any way the City Council, I mean the City Manager, wants to spend them. That is it. These monies are NOT dedicated to more emergency services, not required to clean up public spaces, and while perhaps intended, are not mandated to help the homeless.  Now hoodwinked may be too strong a word; I think it is more like, “Pay no attention to the man behind the curtain.”

The following is directly quoted from the Measure G Resolution passed by Council July 29, 2020:

WHEREAS, the tax provided for by the proposed Ordinance shall be enacted solely to raise revenue for general purposes, and shall be placed into the City’s General Fund, and is not intended for regulation;  . . .   (Author added emphasis.)

There are two things around this topic that I know to be true:

  1. I do not want to pay higher taxes. The reason I live in Vallejo is the same reason you do: I can afford a good life here.
  2. We need to raise our taxes. It’s the same, it’s the same, it’s the same. Ever since the Navy left we have not figured out how to raise money and now we are stuck between a rock and a hard place.  Bankruptcy behind us, bankruptcy before us, into the valley of Receivership rode the City of Vallejo. We need to tax ourselves more.

“But Tom,” you ask, “if we need higher taxes why vote no on Measure G?”

This is a very fair question which I will attempt to briefly unpack for you. Those of you who have watched the West Wing have undoubtedly heard Toby Ziegler say how a Sales Tax is a regressive tax; it unfairly burdens those at the bottom of the income ladder. Newsflash: Most of Vallejo is at the bottom of the income ladder.  One councilperson, whose opinion I respect greatly, told me that, “Over 200,000 people travel through Vallejo every day. They should pay for their share of the services.” Now a couple of things about this statement is true:

  1. People who come from out of town to shop so indeed spend more money per capita than do local shoppers which does result in more sales tax collected. But only if we give them a reason to shop here. (Example: If I live down the street from the grocery, I may just pop down for a gallon of milk. If I choose to travel to Benicia and visit the Raley’s there, I will spend more money because each trip takes me so much more time and I do not wish to waste the trip.)
  2. 200,000 people do indeed travel through Vallejo every day; although, they do not so much all stop and shop here. (What we really need is to develop reasons for them to stop and shop here. We need to work on our place making like Mare Island Brewery and Nicole Hodge’s Provisions. If only I knew someone on the Planning Commission.)

FYI: Currently 27% of our budget comes from sales tax. When people are shopping here, things are booming for the City budget. If we add the $12M more, that this tax will supposedly raise, that would bring the adjusted percentage to 34%. If you do not believe that Vallejo is drowning, and we are; by adding this level of dependency on the health of the economy, without the monies specifically going the services you want, well it is like swimming in shark infested waters. Now swimming with sharks is fine, if you can afford to feed them. But what happens when the supply of fish is gone . . . With this type of Transaction and Use tax as an anchor around our feet even the joke of out swimming your buddy becomes impossible.

It was on 12 years ago when we entered the Great Recession (GR). Now there is a significant difference between that event and what is happening now. The GR was a failure of the mortgage banking industry. When adjustable rate loans started, well, adjusting; people could no longer afford housing. Credit scores were ruined and my house alone dropped to a quarter of its previous high in value.  Because of this Vallejo lost not only property tax but sales tax revenue too; and the economy, in total, nearly ground to a halt. That bit has now sorted itself out and mortgage rates are at an all-time low. Housing is in demand and home values are remaining strong. Why? Because this time the economy has slowed, not because people cannot afford to keep their homes but because we are not allowed to go out and spend money. Monies which return as sales tax to the City.

Many of you voted for Measure K which is a special parcel tax that funds Capital Improvements, part time help and some Recreation programs for GVRD. While GVRD is reeling from the loss of income it receives from the fees that it would normally charge for rentals or programs; Measure K monies are keeping their ship upright and sailing. Why? Because this type of tax is not dependent on the economy. This money is collected by the county every year and held for GVRD to use as it sees fit; within the restrictions of Measure K that you, and GVRD, agreed to when voting for it. Now a parcel tax would increase the rent of renters in Vallejo true, but, more importantly, it spreads the cost to not only residential parcels but non-residential ones as well. A much stronger, more dependable tax base.

Vallejo, the truth is, if we want nice things we have to pay for it. If we want more mental health services and programs like CAHOOTS, we have to pay for it. But not this way. What good is a sales tax when no one is out shopping and spending money? What sense can you make of a strategy that is entirely dependent on a proven weak leg of the economy; local consumerism?  Voting for Measure G only make Vallejo more vulnerable in the future. Let us instead write a new Special Parcel Tax that gives us the exact services that we want with a funding source infinitely more dependable.

Please, Vote NO on Measure G. With that I ask everyone who is willing, let us get together to write a new measure that will guarantee funding for public safety.

Until next time,

Tommy Judt

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