Small group of dissenters say tax measure is flawed
(Editor’s note: This is part of an ongoing series that explains both sides of Santa Monica’s ballot measures. Today is the school district’s proposal to raise property taxes. Look for continued coverage of the issues in the Santa Monica Daily Press through Nov. 5)
By Andrew H. Fixmer
Daily Press Staff Writer
Santa Monica-Malibu Unified officials aren’t taking anything for granted in their attempt to convince voters this November of the need to increase parcel taxes nearly 300 percent.
The school district’s ballot initiative, Measure EE, asks voters to approve gradually increasing their parcel taxes by 250 percent over the next three years until the current parcel tax of $101.14 would be increased to $360 by 2006.
There are 32,413 parcels in the two cities, and the increased parcel tax rate would annually give the school district an additional $9.6 million beginning in July 2003.
But to raise taxes, the school district needs its measure to pass by a two-thirds majority. Though no organized campaign against the measure has materialized, school district officials say they are fighting an uphill battle.
“Are people concerned?” asked Ralph Mechur, Measure EE campaign manager. “You bet.”
Worsening economic conditions and general apathy over the elections this year may not bring out the needed supporters, officials said.
As of Oct. 15, Measure EE supporters had shelled out more than $130,000 in campaign donations to help convince residents of the need to get out and vote on Nov. 5.
“I think once the message is clear, I think people will understand that it’s one, sorely needed but that two, everyone benefits,” said Neil Carrey, a local tax attorney who helped write the parcel tax initiative. “In the long run, it will preserve and increase property values.”
Because of a dramatic decrease in state funding, the school district faced a $4.5 million budget deficit this year. Through severe cutbacks and an additional $1.5 million donation from Santa Monica, the school district was able to balance its books.
However, district officials anticipate another $5.7 to $8 million budget deficit next year. They warn without the parcel tax increase the district will have to make even more drastic cuts.
6C1,“This is an important measure that would allow the district to continue to provide programs the district demands, and keep it the reputation it has,” said Superintendent John Deasy. “It prevents what would be draconian cuts in the budget.”
As the state legislature continues to cope with its $28.8 billion deficit, officials say education will likely continue to fall by the wayside. School districts across the state are being squeezed by precipitous declines in state funding and significant increases in the cost of health insurance and retirement plans.
In Santa Monica schools, officials also are attempting to lower class sizes over the next three years so that classes stay well below 35 children on average. To achieve that, the school district will have to go with less funding from the state, which pays districts based on the number of children enrolled.
A handful of residents are asking voters to vote down Measure EE on the Nov. 5 ballot and wait for a better worded initiative to come back during a possible spring election.
Detractors of Measure EE say parcel taxes, which are flat fees charged to property owners, are unfair because they ask the poor and the wealthy to pay the same amount. Under that system, the burden falls on the poor and those living on a fixed income, they said.
The measure’s opponents — who say they agree the school district needs more local funding — want the district to use another form of taxation.
They propose using a tax that’s proportional to the square footage of buildings on the lot — like they do in Berkeley — or charging each residence a flat fee — like they do in Davis, Calif. — to take into consideration the nearly 75 percent of Santa Monicans who live in apartments.
Opponents also want to vary rates paid by commercial and residential properties, and have exemptions for seniors and low-income families.
“It doesn’t mean you’re against education if you vote against EE, it just means you support another revenue model,” said Santa Monica resident Don Gray, who has a child enrolled at Roosevelt Elementary School.
Supporters say Measure EE has significant protections written into it that ensure the increased funds go towards paying for educational programs and not paying for increased travel expenses or salaries.
Since the state constitution forbids property taxes, Measure EE supporters say parcel taxes are the fairest way to raise the needed revenues.
Less-wealthy apartment dwellers would pay only a fraction of the increased parcel tax. Measure EE supporters say the average Santa Monica resident living in an apartment would pay approximately $3 more a month in rent.
And unlike in past years when the school district has asked for increases in the parcel tax, this time Measure EE supporters say the district is not just fixing current problems but looking down the road at future pitfalls.
“We are going to have a crisis in public education for along time to come,” Carrey said. “But what I feel good about is that we’re finally coming up with a number for a parcel tax that will not only fill-up the holes we have now but which will leave a substantial amount of money to improve things.”
“We are going to have a crisis in public education for along time to come.” — NEIL CARREY School parcel tax supporter
Originally published in the Santa Monica Daily Press print edition on October 22, 2002. Read the original PDF.