ARTICLE
The Santa Cruz City Council is placing a 1/4 cent tax measure before the voters of the City of Santa Cruz on the June 5th ballot. This measure would provide additional tax revenue to the City’s general fund to help pay for public safety and related general fund obligations such as parks, recreation human health services and unfunded pension liabilities for City employees. The reason for this measure according to the City, local sales tax revenue is declining due to on-line retailers, reduced gas tax and lower sales at traditional “brick and mortar” retail outlets within the City limits. The Santa Cruz Area Chamber of Commerce has taken a neutral position on this tax measure for the reasons expressed in this policy statement. Many concerned businesses and chamber members in the Santa Cruz region are seeking our advice on this tax measure and what impact the tax may have on our local businesses. The members of the Chamber Board of Directors met with City staff and Council members to understand the budgetary constraints the City faces. The City staff provided us with a better analysis of the City’s budget process. This budget breakdown underscores the limitation placed on the City as it grapples with revenue shortfalls. The pension contracts between the City and its employees were negotiated with the seven labor bargaining units of City government many years ago. A recent report from the League of California Cities highlighted that cities all across the state face shortfalls and unfunded pension liabilities. The full report can be reviewed here. The Chamber applauds the City of Santa Cruz for taking responsible steps to address its budgetary issues. The Santa Cruz Area Chamber of Commerce represents more than 600 businesses (Most of our members are large, medium and small businesses; over 62% of our members are small businesses — with less than 20 employees). As the local voice for the County's businesses, the Chamber advocates on issues that drive economic vitality, provide information, ideas, and resources that help businesses navigate a competitive environment, and create opportunities for business people to connect and forge relationships that strengthen their businesses and careers. Since 1889, the Chamber has worked to make Santa Cruz County a better and more prosperous place to work, live, and visit. Our core policy issues are: • Economic development for the 21st century • Water sustainability solutions • Affordable housing strategies for workers and their families • An efficient regional transportation system • Education systems that attract talent and develop our workforce However, the Chamber as a regional business association with members located in all parts of the county. We know these deficit issues are not limited to the City of Santa Cruz. We see this as a county and statewide problem for our members where other cities — Capitola, Scotts Valley, Watsonville and Santa Cruz County face similar obstacles in addressing their budget shortfalls. Deciding to tackle the revenue shortfall by a ¼ cent tax increase in perpetuity may help the City of Santa Cruz, but it does not address the sobering problems that are part of the pension obligations for cities, counties and special districts throughout the State. At this time, the Santa Cruz Area Chamber of Commerce has carefully reviewed the proposed Measure S. We understand why the Council recommends this measure. However, the Santa Cruz Area Chamber of Commerce will remain neutral on Measure S as it goes before Santa Cruz voters. We expect our members to come down on both sides. We believe there will be a robust public discussion. We believe we can best serve our members and the community as an informed and accurate information source and trusted advisor to our members, whether they support or oppose this measure.
Many concerned businesses and chamber members in the Santa Cruz region are seeking our advice on this tax measure and what impact the tax may have on our local businesses.
The members of the Chamber Board of Directors met with City staff and Council members to understand the budgetary constraints the City faces. The City staff provided us with a better analysis of the City’s budget process.
This budget breakdown underscores the limitation placed on the City as it grapples with revenue shortfalls.
The pension contracts between the City and its employees were negotiated with the seven labor bargaining units of City government many years ago. A recent report from the League of California Cities highlighted that cities all across the state face shortfalls and unfunded pension liabilities. The full report can be reviewed here.
The Chamber applauds the City of Santa Cruz for taking responsible steps to address its budgetary issues.
The Santa Cruz Area Chamber of Commerce represents more than 600 businesses (Most of our members are large, medium and small businesses; over 62% of our members are small businesses — with less than 20 employees). As the local voice for the County's businesses, the Chamber advocates on issues that drive economic vitality, provide information, ideas, and resources that help businesses navigate a competitive environment, and create opportunities for business people to connect and forge relationships that strengthen their businesses and careers. Since 1889, the Chamber has worked to make Santa Cruz County a better and more prosperous place to work, live, and visit. Our core policy issues are:
• Economic development for the 21st century
• Water sustainability solutions
• Affordable housing strategies for workers and their families
• An efficient regional transportation system
• Education systems that attract talent and develop our workforce
However, the Chamber as a regional business association with members located in all parts of the county. We know these deficit issues are not limited to the City of Santa Cruz. We see this as a county and statewide problem for our members where other cities — Capitola, Scotts Valley, Watsonville and Santa Cruz County face similar obstacles in addressing their budget shortfalls. Deciding to tackle the revenue shortfall by a ¼ cent tax increase in perpetuity may help the City of Santa Cruz, but it does not address the sobering problems that are part of the pension obligations for cities, counties and special districts throughout the State.
At this time, the Santa Cruz Area Chamber of Commerce has carefully reviewed the proposed Measure S. We understand why the Council recommends this measure. However, the Santa Cruz Area Chamber of Commerce will remain neutral on Measure S as it goes before Santa Cruz voters. We expect our members to come down on both sides. We believe there will be a robust public discussion. We believe we can best serve our members and the community as an informed and accurate information source and trusted advisor to our members, whether they support or oppose this measure.