Measure on Nov. 2 ballot essential for city
’s financial health
Twice a year the state of Morgan Hill’s health is exposed to public view, a full State of the City address by the mayor in February, and a shorter sketch of the situation by the city manager in October.
A Chamber of Commerce breakfast, City Manager Ed Tewes laid out the details.
“The city’s financial condition is strong,” Tewes said, largely because of lower spending.
But, he said his overriding concern was proposition 1A on the Nov. 2 ballot.
“It’s critical that it passes,” Tewes said.
The proposition was placed on the ballot by Gov. Arnold Schwarzenegger, responding to a clamor by California cities and counties to stop the annual state money grab.
For the past 12 years, to make up for shortfalls, the state hijacks bags and bags of money from sales, property and vehicle license taxes intended for city and county coffers, causing even greater shortfalls there in funds that pay for police and fire protection, park maintenance, libraries and health services. Morgan Hill gave up $700,000 this year.
“This amount would pay for one 24-hour police officer,” he said. “It also equals the entire park maintenance budget.”
The smaller governments – cities and counties – put Proposition 65 on the ballot, forbidding the state to continue this practice. After the governor added 1A, most city and county officials have backed it and are willing to let 65 fail to get the governor’s help in getting the measure passed.
The difference is that 65 forbids any future state takeaways; 1A allows them for two more years only, to the tune of $1.3 billion each year.
1A also ends unfunded mandates, saying that if, in future, the state insists on a program it must provide the funds to pay for it. Since Prop. 65 and 1A both cover essentially the same issues, the one receiving the most “yes” votes wins; Tewes emphasized the need to vote “yes” on 1A and “no” on 65 to lessen confusion.
As the staff person responsible for the city budget, Tewes was emphatic that state takeaways be stopped; allowing cities to know how much revenue they will have to work with, without the specter of a state raid.
Because, since Proposition 13 put the lid on property taxes in 1978, cities rely on sales taxes to pay for police, fire and recreation services. Tewes underscored the importance of where one shops.
“If you shop in Gilroy, you help Gilroy’s general fund,” he said. “Shop in Morgan Hill when you can.”
Tewes said a 66-acre regional shopping center is in the works for the northeast corner of Cochrane Road and Highway 101.
