Mr. Mayor, consider other funding sources
An open letter to Mayor Javier Gonzales: As you know, I have been a close follower of your pre-K/ sugary-drinks tax proposal. I have been with you in at least seven public meetings where you have spoken persuasively about the need for pre-K in Santa Fe. You have also spoken passionately of your desire to keep Santa Fe united and working together.
We each attended last Monday’s Finance Committee meeting. At the end of the evening, city Finance Director Adam Johnson presented a budget update. The news was very good: The city had found a way to reduce property taxes, and gross receipts taxes are expected to come in well above budget.
You met with us at the Greater Santa Fe Restaurant Association and said that you would consider funding alternatives for your pre-K proposal. I’m asking you to consider an alternative that would meet many, but not all, of your objectives and avoid the $70,000 to $80,000 expense of a special election while helping keep Santa Fe united by preventing an ugly election fight that we both know will be funded by two “big money” interests. As a compromise, here’s how this would this work:
We fund 400 pre-K slots at an annual cost of $3 million. Based on data in economist Kelly O’Donnell’s report, the slots would cover the unmet need for all 4-year-olds in Santa Fe, plus fund a “pre-K pilot program” for up to 50 3-year-olds.
The purpose of the pilot program would be to demonstrate that the city and its partners are able to implement a pre-K program that educationally and economically benefits young pre-K students, their families and the city at a measurable level, and elevates the performance level (star ratings) of the participating pre-K programs. (A broader program would be rolled out as soon as we see that the pilot program works.)
An additional $250,000 would be allocated for training, performance tracking and administration. The performance tracking system would monitor metrics recommended by the Early Childhood Education Commission as well as suggestions made by Councilor Carmichael Dominguez during the discussion portion at Monday’s Finance Committee meeting.
The total cost of the compromise program would be $3.25 million. Using the city finance director’s budget update, it would be funded from a combination of: property taxes available after bonds are retired, $1.5 million; excess gross receipts taxes, $1.9 million.
(By the way, the budget update was actually prepared to show the Finance Committee how the city could afford to fund a 5 percent pay increase for all employees. However, I assume that the available funds could be used any way the governing body chooses.) Here are benefits: We wait to spend $20 million-$25 million (over five years) on a pre-K program for all 3-year-olds until actually validating that we can design, implement and manage a program that produces measurable educational and economic benefits for families in Santa Fe. (In fact, implementing a pilot program for a small number of high-need students could actually improve long-term results. With just a small “test” group, it will be much easier for a highly focused monitoring team to identify what works and what doesn’t. Then, the team can apply that learning for the benefit of a broader group of 3-year-olds.)
We can offer the pre-K program sooner, making it available in September 2017 instead of January 2018, because the new funding source can be approved by a vote of the governing body.
We avoid a costly and divisive special election.
The proposed funding mechanism is more reliable than a tax on sugary drinks.
For this to work, you and your supporters would need to be open to a compromise solution. The city might need to identify additional funding sources if it is to approve a full 5 percent salary increase for all employees.
Both the Santa Fe Chamber of Commerce and the Greater Santa Fe Restaurant Association have asked you to look at alternatives to a sugar tax. I urge you and the City Council give this option a full and fair review on Wednesday night.
Thanks, Mayor.