To Tax or Not to Tax

Item 18 on tomorrow’s ridiculously packed agenda are proposals to put a streets and infrastructure tax on the November ballot. One includes a 15 year sunset clause and the other has no sunset at all. The no sunset option in DOA, I’m sure. The tax increase is projected to produce $15,000,000 a year.

The 6.5% sales tax increase is supposed to be restricted to infrastructure, meaning it needs a supermajority (66.6%) of voters to pass. A general tax would only need 50%+1 to pass; but that option seems to have no chance of a majority to put it on the ballot, and is not being considered. Since the August 4th meeting is cancelled so the politicians can attend the cops’ feel-good National Night Out party, this is the last chance to get something on the November ballot.

The people of Fullerton have finally had enough of bad roads that only seem to get worse. But will 67% vote for this? I don’t know. People hate bad roads but a lot of them also hate taxes.

The ad hoc Budget Sustainability Committee did not recommend this infrastructure tax increase. Two members did support it, and only on the condition that the current budget requirement for infrastructure spending remain in place, thus avoiding the usual budget switcheroo. But the idea couldn’t get a third vote. Still, the existing requirements for infrastructure are not being deleted in this ordinance, so at least there’s that.

I am extremely skeptical of Fullerton’s bean counters to keep everything straight, especially given this years accounting fiascos. The language of the proposed ordinance requires an annual audit of the funds, but we know how this goes.

I see the potential for several departments – police, fire, parks stand out – as trying to lay claim for capital project billing using these new funds. The Engineering and Public Works personnel will be the biggest employee beneficiaries since they already generously charge their time to capital projects. Does their current subsidy by the General Fund remain? I sincerely doubt it.

On the happy side, the ordinance would require 75% of the new funds be applied to streets only. Water/sewer and airport expenditures are explicitly verboten using this money, likely because they don’t need it. Still, the plan is only as good as the accounting.