ARTICLE
The election clock is ticking as voter ballots have arrived in mailboxes; California and local government voter pamphlets sit on your coffee table, ready to provide you with an explanation and definition of each ballot measure and candidate. We are seeing the campaign signs dotting residential front yards, corner lots with optimal viewing, and along oddly placed rural properties seemingly miles away from the district boundaries of a specific candidate. We are seeing local newspapers aligning their editorial board’s opinion on supporting or opposing a candidate or ballot measure. The ritual of campaign finance reporting hitting specific reporting deadlines is fast approaching. The next report is coming up on October 24. That is the last report before the Nov. 5 General Election. In today’s campaign financing, it is common practice that larger sums of contributions are collected during the last two weeks of the election cycle, and the campaign financial reports are submitted after the election. In some instances, the last-minute funds can be a telling sign of the outcome of a specific election. We’ll just have to see how that plays out. Let’s take a moment to outline what is at stake with the local Santa Cruz County ballot measures. The language below is directly from the Santa Cruz County Election Office reports of each ballot measure: - Measure D — Aromas-San Juan School District — Measure D is a vote in favor of allowing the District to issue and sell up to $44 million in general obligations bonds. - Measure L — Bonny Doon Elementary School District Bond. Measure L is a vote to authorize the District to issue and sell bonds of $7,000,000 to be financed by an annual property tax. - Measure M — Pajaro Valley Unified School District Bond. Measure M is a vote to allow the District to issue bonds of $315,000,000 to be repaid by an annual property tax. - Measure N — Live Oak School District Bond. Measure N is a vote to authorize the District to issue and sell bonds of $45,000,000 to be financed by an annual property tax. - Measure O — Scotts Valley School District Bond. Measure O is a vote to authorize the issuance of bonds of $85,000,000 to be financed by an annual property tax. - Measure P — Soquel Union Elementary School District Bond. Measure P is a vote to allow the District to issue and sell up to $73,000,000 in general obligation bonds and financed by an annual property tax. - Measure Q — Santa Cruz County Water & Wildfire Protection Act. Measure Q is a vote to add Chapter 4.65 to the County Code and allow a special parcel tax of $87 to be collected annually until ended by voters for specific eligible projects. If passed by a majority of voters, it is estimated that the measure would raise approximately $7.3 million annually. - Measure R — Central Fire District of Santa Cruz County Bond. Measure R is a vote to authorize the Fire District to issue and sell bonds of $221,000,000 to be repaid by an annual ad valorem tax placed on real property. - Measure S — Scotts Valley Fire Protection District Bond. Measure S is a vote to authorize the Fire District to issue and sell bonds of $24,500,000 to be repaid by the levy of an ad valorem tax on real property. - Measure T — Zayante Fire Protection District Tax. Measure T is a vote to allow an annual parcel tax ranging from $50 to $290, depending on the size and improvements of the land, with a possible annual increase, initially raising an estimated $440,000 annually. - Measure U — San Lorenzo Water District Rate Initiative. Measure U in a vote to amend the San Lorenzo Valley Water District’s rates as detailed in the full text of the measure. - Measure X — Scotts Valley Business Tax Measure. Measure X raises the base rate from $90 to $150 per business, with rates increasing incrementally for larger businesses based on gross receipts as provided in the ordinance, generating approximately $1,100,000 annually. - Measure Y — City of Capitola Sales Tax. Measure Y replaces its current quarter-percent sales tax, approved by voters in 2016, with a one-half percent sales tax, generating an estimated $2.2 million annually for general government use, for ten years, with independent audits. - Measure Z — City of Santa Cruz Beverage Tax. Measure Z is a vote to add to the City’s Municipal Code a Sugar-Sweetened Beverage Tax as detailed as 2 cents per ounce of sugary beverage which is estimated to collect $1,300,000 million annually. After a quick review of the summary language of these ballot measures, there is increased pressure on local government entities to find new revenue sources to help pay for public services, facility improvements, and related benefits for each jurisdiction. These bond and tax measures, if approved, would provide an accumulative net increase to local government jurisdictions of $826,400,000. That is a large sum of bond and tax revenue for our small Santa Cruz County. Our population is approximately 261,547 based on a March 14, 2024 count. (The 2020 US Census reported a population of 270,861). Doing simple math, the $826,400,000 bond and tax collection over multiple years could equal approximately $3,159 million/per Santa Cruz County resident. Each jurisdiction must analyze its overall finance and debt services to pay for and improve its facilities and public services. It also needs to account for the cost associated with its proposed bond or tax measure and provide unquestioned value to its constituents. I am not second-guessing the leadership of these public entities as they evaluate their economic needs to provide the public services that their constituents desire. The unanswered question is: Will the bond and tax measure be enough to support the facilities and public improvements in the short and long term? During every election cycle, we see local governments marching out a laundry list of public facility improvements that are considered necessary to address the benefits their residents want or desire. There appears to be a pattern that repeats itself at least every two years. In this election cycle, unlike in past years, the Santa Cruz County Chamber is not taking a position on any of the proposed ballot measures. After reviewing the various measures and after a long pause, the Chamber has determined that the legislation and policy intent of the proponents of these bond measures may create avoidable unintended economic consequences. With respect to our public sector officials throughout our county and we appreciate their efforts to address local policy and financial shortfalls, however, we don’t believe that the accumulative cost of these measures at this time is prudent economic policy for our county.
The election clock is ticking as voter ballots have arrived in mailboxes; California and local government voter pamphlets sit on your coffee table, ready to provide you with an explanation and definition of each ballot measure and candidate. We are seeing the campaign signs dotting residential front yards, corner lots with optimal viewing, and along oddly placed rural properties seemingly miles away from the district boundaries of a specific candidate.
We are seeing local newspapers aligning their editorial board’s opinion on supporting or opposing a candidate or ballot measure. The ritual of campaign finance reporting hitting specific reporting deadlines is fast approaching. The next report is coming up on October 24. That is the last report before the Nov. 5 General Election. In today’s campaign financing, it is common practice that larger sums of contributions are collected during the last two weeks of the election cycle, and the campaign financial reports are submitted after the election. In some instances, the last-minute funds can be a telling sign of the outcome of a specific election. We’ll just have to see how that plays out.
Let’s take a moment to outline what is at stake with the local Santa Cruz County ballot measures. The language below is directly from the Santa Cruz County Election Office reports of each ballot measure:
- Measure D — Aromas-San Juan School District — Measure D is a vote in favor of allowing the District to issue and sell up to $44 million in general obligations bonds.
- Measure L — Bonny Doon Elementary School District Bond. Measure L is a vote to authorize the District to issue and sell bonds of $7,000,000 to be financed by an annual property tax.
- Measure M — Pajaro Valley Unified School District Bond. Measure M is a vote to allow the District to issue bonds of $315,000,000 to be repaid by an annual property tax.
- Measure N — Live Oak School District Bond. Measure N is a vote to authorize the District to issue and sell bonds of $45,000,000 to be financed by an annual property tax.
- Measure O — Scotts Valley School District Bond. Measure O is a vote to authorize the issuance of bonds of $85,000,000 to be financed by an annual property tax.
- Measure P — Soquel Union Elementary School District Bond. Measure P is a vote to allow the District to issue and sell up to $73,000,000 in general obligation bonds and financed by an annual property tax.
- Measure Q — Santa Cruz County Water & Wildfire Protection Act. Measure Q is a vote to add Chapter 4.65 to the County Code and allow a special parcel tax of $87 to be collected annually until ended by voters for specific eligible projects. If passed by a majority of voters, it is estimated that the measure would raise approximately $7.3 million annually.
- Measure R — Central Fire District of Santa Cruz County Bond. Measure R is a vote to authorize the Fire District to issue and sell bonds of $221,000,000 to be repaid by an annual ad valorem tax placed on real property.
- Measure S — Scotts Valley Fire Protection District Bond. Measure S is a vote to authorize the Fire District to issue and sell bonds of $24,500,000 to be repaid by the levy of an ad valorem tax on real property.
- Measure T — Zayante Fire Protection District Tax. Measure T is a vote to allow an annual parcel tax ranging from $50 to $290, depending on the size and improvements of the land, with a possible annual increase, initially raising an estimated $440,000 annually.
- Measure U — San Lorenzo Water District Rate Initiative. Measure U in a vote to amend the San Lorenzo Valley Water District’s rates as detailed in the full text of the measure.
- Measure X — Scotts Valley Business Tax Measure. Measure X raises the base rate from $90 to $150 per business, with rates increasing incrementally for larger businesses based on gross receipts as provided in the ordinance, generating approximately $1,100,000 annually.
- Measure Y — City of Capitola Sales Tax. Measure Y replaces its current quarter-percent sales tax, approved by voters in 2016, with a one-half percent sales tax, generating an estimated $2.2 million annually for general government use, for ten years, with independent audits.
- Measure Z — City of Santa Cruz Beverage Tax. Measure Z is a vote to add to the City’s Municipal Code a Sugar-Sweetened Beverage Tax as detailed as 2 cents per ounce of sugary beverage which is estimated to collect $1,300,000 million annually.
After a quick review of the summary language of these ballot measures, there is increased pressure on local government entities to find new revenue sources to help pay for public services, facility improvements, and related benefits for each jurisdiction. These bond and tax measures, if approved, would provide an accumulative net increase to local government jurisdictions of $826,400,000.
That is a large sum of bond and tax revenue for our small Santa Cruz County. Our population is approximately 261,547 based on a March 14, 2024 count. (The 2020 US Census reported a population of 270,861). Doing simple math, the $826,400,000 bond and tax collection over multiple years could equal approximately $3,159 million/per Santa Cruz County resident.
Each jurisdiction must analyze its overall finance and debt services to pay for and improve its facilities and public services. It also needs to account for the cost associated with its proposed bond or tax measure and provide unquestioned value to its constituents.
I am not second-guessing the leadership of these public entities as they evaluate their economic needs to provide the public services that their constituents desire. The unanswered question is: Will the bond and tax measure be enough to support the facilities and public improvements in the short and long term?
During every election cycle, we see local governments marching out a laundry list of public facility improvements that are considered necessary to address the benefits their residents want or desire. There appears to be a pattern that repeats itself at least every two years. In this election cycle, unlike in past years, the Santa Cruz County Chamber is not taking a position on any of the proposed ballot measures. After reviewing the various measures and after a long pause, the Chamber has determined that the legislation and policy intent of the proponents of these bond measures may create avoidable unintended economic consequences.
With respect to our public sector officials throughout our county and we appreciate their efforts to address local policy and financial shortfalls, however, we don’t believe that the accumulative cost of these measures at this time is prudent economic policy for our county.