Supervisor drops bid for sales tax hike

SAN JOSE >> For the second straight year, Santa Clara County Supervisor Cindy Chavez’s proposal to place a 5/8-cent sales tax increase on the ballot isn’t going anywhere.

Chavez pulled the tax proposal off the meeting agenda Tuesday, citing not enough support from her colleagues.

Last month, Chavez said the sales tax increase is needed to continue expanding local social service programs and as a hedge against possible state and federal funding cuts.

Placing a tax increase on the November 2020 ballot would have required approval by four of the five supervisors.

“We just weren’t going to get to four,” Chavez said during a meeting break, noting that only three supervisors voted last month to bring the tax increase forward for discussion. “Really, when I brought the issue forward, we didn’t have much conversation.”

Although supervisors didn’t discuss the measure Tuesday, some advocates who showed up said they should have given residents the chance to vote on a sales tax increase.

“Santa Clara County residents…are facing a crisis of housing, child care and health care, and I want to thank those on the board who want to decide if they want to invest in their community,” said Mulissa Willette, a San Jose resident and leader for SEIU Local 521, a county employees union. “It’s disappointing that some board members do not believe residents should be able to vote on this.”

The county also received at least two dozen emails opposing the tax increase, with several opponents saying residents are already overtaxed.

A 5/8-cent increase would raise the countywide sales tax from 9 to 9.625 percent, although consumers would pay more in certain cities where additional taxes are levied. It would funnel an estimated $250 million a year into the county’s general fund, to be spent as the supervisors wish.

A similar 5/8-cent sales tax proposal in June 2018 also failed to muster the four votes needed to make it on the ballot. Instead, the supervisors asked residents to renew a 1/8-cent sales tax with no expiration date, and 78 percent voted in the November 2018 election to do so.

Supervisor Mike Wasserman opposed the 5/8cent sales tax increase last year and reiterated his opposition to another attempt last month, when he voted against bringing the newest proposal to a full board vote.

Supervisor Joe Simitian declined Tuesday to comment on the latest tax proposal, noting it never officially came before the board for discussion.

But he noted that his comments last year when he abstained from voting on the initial 5/8-cent proposal still stands.

“This is not about being anti-tax … I just think we can’t go out to the public and make the case that we need another 200 million dollars a year in perpetuity,” Simitian said last year.

County spending has expanded from $4.9 billion to $8.1 billion in the last five years, with this year’s budget alone 15.6 percent larger than the previous year. County CEO Jeff Smith has warned supervisors this is likely the last year the county could expand, noting that a potential recession would decrease property tax revenue and other funding streams that have fueled the growth.

And while the Trump administration’s threats to cut federal spending on programs such as the Affordable Care Act and food stamps have yet to be carried out, county officials say they’re still possible.

In justifying the tax increase, Chavez pointed to a number of social service needs, including funding for domestic and sexual violence survivors, child care initiatives and mental health services. Advocates for a farmland preservation program, which supervisors launched last year but haven’t found the permanent funding for, were also hoping to see some of the new tax revenue go toward that cause.

Asked in an interview if she thought there was a scenario where her colleagues would support a sales tax hike in proposal, Chavez said it’s hard to tell because most supervisors didn’t offer any comments at the public discussion when she first brought it up.