Proposed soda tax clears first committee
2-cent-per-ounce levy would fund pre-K education in SF
SANTA FE — Mayor Javier Gonzales’ controversial proposal to place a two-cent-per-ounce tax on sugar-sweetened beverages to fund early childhood education programs in the city was passed by the Public Works Committee on Monday, but some members of the panel found the idea a little too tart.
Councilor Ron Trujillo was the only member of the five-member committee to cast a “no” vote. He called it “another initiative that divides the community,” but that’s not why he voted against it.
“There’s a lot of things that still need to be answered,” he said.
Like how much will it cost to pay a city employee and a third-party collection company to collect the tax? And, “What’s next?” he asked. “A tax on salt?”
Even if the proposal gets the support of the City Council next month, it will be up to voters to decide whether to impose the tax, expected to generate about $7.2 million annually to fund the proposal.
The mayor said the purpose of the tax is to provide for programs that would allow approximately 1,000 children ages 3 and 4 in the community access to early childhood education. Many of them are from low-income families who cannot afford to pay the $900 to $1,400 per month to put a child in a program.
Councilor Joseph Maestas abstained from the vote, partly because he, too, still had unanswered questions. Since the funding would be distributed to mostly nonprofit organizations that operate or support early childhood education programs, he wasn’t sure how the city could get around the anti-donation clause because it would be public money allocated to private groups.
He also questioned whether it should be city government leading the effort, saying early childhood education was not a core function of the city.
He was also concerned about the long-term sustainability of a tax that “has the potential to max out right from the get-go.”
The two-cent-per-ounce tax would actually be placed on the distributors of sugary drinks, but retailers are expected to raise prices in turn. That could lead to a decline in sales, thus a decline in revenue to support the program.
Gonzales said a financial analysis and a survey of other cities that have imposed a similar tax indicated that consumers end up paying only a portion of the tax.
Councilors Peter Ives, Renee Villarreal and Chris Rivera voted in favor of the proposed ordinance.
The vote came after a public hearing at which most of the speakers supported the proposal. Among them were representatives of the United Way of Santa Fe County, teachers and doctors, who spoke of the negative health effects of sugar consumption.
Some of those opposed to the idea said it would hurt small businesses and were skeptical about how the program would be implemented.
A vote on an accompanying resolution setting guidelines for the early childhood initiative passed unanimously.
Both the proposed ordinance and the resolution will be considered by the Finance Committee on Feb. 27, at which time another public hearing will be held. The public will also have a chance to provide input when the matter comes before the City Council on March 8.