Voters will likely decide on several new taxes in June and
November elections
Morgan Hill – Local voters who go to the polls this year will need valid identification. They may also want to bring their checkbooks.
Morgan Hill residents are facing no fewer than four tax measures from a number of government agencies split between the June and November ballots, and depending on the outcome of the city’s Community Conversation process, that number could go up.
“There’s going to be a lot of taxpayer fatigue,” Councilman Larry Carr said. “That ought to be a concern for all of us. We’re not operating in a vacuum. We represent the same base of taxpayers and we need to be mindful of that.”
But as the county, cities, school districts and other agencies struggle with declining sales and property tax revenues and fewer state and federal funding sources, they’re turning more and more to citizens to solve budget shortfalls.
The county is looking at a $111 million budget deficit next year. Morgan Hill has a $1.3 million deficit that is expected to grow to $2.3 million by 2011, and the city is currently asking residents if they want to cut services or pay higher taxes and fees to close that gap.
Other agencies are going straight to the polls. By next year, the city’s sales tax could reach the state maximum 9.25 percent:
n The Morgan Hill Unified School District will likely refinance a 1999 voter-approved construction bond, a move that will drive up property taxes, though residents won’t get another chance to vote on it. The district also is considering placing a new parcel tax on the June ballot. That tax, approximately $120 to $150 per parcel, would need two-thirds approval and would go toward technology improvements and a host of after-school and extra-curricular activities.
n Santa Clara County is likely to place a quarter- or half-cent sales tax on the June ballot. The measure, which needs a simple majority to pass, would fund healthcare and other social services, and could be used for transportation projects as well. Supervisors will vote on the measure later this month.
n The Santa Clara Valley Transportation Authority may move forward with a quarter-cent tax to build the $4.7 billion BART extension to San Jose and other transit improvements, though its possible the agency could be funded by a new county sales tax. The VTA will likely go on the November ballot to avoid a head-to-head clash with the county tax.
And there are any number of city tax measures that could come out of Morgan Hill’s community conversation process. Depending on the results of that program, the city’s November ballot could contain a sales tax measure, new development fees and one or more of a handful of special parcel taxes or assessment district fees.
The slew of measures will not only make it tougher for any of them to succeed at the ballot booths, it also changes the political calculus for Morgan Hill leaders who may want to support other measures, but will risk losing votes for their own potential taxes by doing so.
“I’m concerned about that,” Mayor Dennis Kennedy said. “If it was a VTA quarter-cent sales tax or something for Morgan Hill on the ballot, I don’t know if I could support both or if the council could support both.”
Kennedy and other council members had hoped for a combined sales tax measure to benefit the county, its cities and the VTA, but such a measure stalled in negotiations. Tax measures earmarked for particular agencies and projects usually require two-thirds support to pass.
“My experience has been that if you have too many on one ballot they all get hurt,” Kennedy said. “It’s hard to pass any of them. I’m really concerned that by not working together we’re all going to end up losing. Communities will end up losing because of the lack of ability to work together.”
City leaders say local measures have a better shot of success because residents are more likely to see their benefit, especially through the community conversation process. Councilman Greg Sellers said the city will only move forward with one or more tax measures if that appears to be the will of the community.
“Cities tend to be in a better position because services are local and most direct,” Sellers said. “Services have the most resonance. And if it’s only us in November, that will be helpful. In June, we’ll have a sense of what voters are thinking.”
So far, the more than fifty or so residents who’ve attended community conversation meetings have expressed mixed views about new taxes. To be successful, they say, a measure will have to provide an important and concrete benefit. They are more likely to support the city over the county or the VTA.
“If I can associate the tax with the immediate benefit [I’m more likely to support it],” resident Pat Schmitzer said. “I don’t like huge measures with benefits that are somewhat immeasurable.”
Resident Anita Woodson agreed.
“There has to be a direct benefit to the Morgan Hill community,” Woodson said. “I would tend to support that more than an overall tax. We’ll have to see what the ballot measure is.”
Checkbook Ballots
Potential tax measures voters could see on upcoming ballots:
In June
- Property tax of $120-$150 per parcel to fund technology improvements and agriculture, athletics and music programs in the Morgan Hill Unified School District. Needs two-third approval.
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Sales tax of a quarter-cent or half-cent to fund county programs. Needs a simple majority.
In November
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Sales tax of a quarter-cent to fund the Santa Clara Valley Transportation Authority and extend BART to San Jose. Needs two-thirds approval.
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One or more of sales tax, parcel tax, utility tax, special assessment taxes or development fees for the Morgan Hill general fund. Needs majority or two-thirds approval, depending on ballot measure.
