Correction: A previous version of this post incorrectly stated that Supervisor Margaret Abe-Koga abstained from the vote. She, in fact, voted “aye” in favor of placing the sales tax measure on the ballot.
Santa Clara County residents will get to decide next November if they’re willing to tax themselves to maintain the county’s award-winning health care system, after the County Board of Supervisors (BoS) last week voted to put a 5/8-cent sales tax proposition on the November ballot.
If passed, the BoS estimates it will raise $330 million annually, but it won’t close the gap created by $500 million in cuts imposed by the Trump administration’s bill, H.R.1.
“H.R.1 presents an unprecedented $1 trillion cut to the federal Medicaid program,” said County Executive James Williams, who has been a Paul Revere on this issue for months.
Santa Clara Valley Health (SCVH) operates four hospitals and 15 clinics, providing care for one in four county residents and access to care for the county’s 1.9 million residents.
“Medicaid is the major insurance program for about one in five Americans and nearly one in two children in the United States, and the significance of that impact across the country is going to be profound,” Williams continued. “It will be hugely significant here in Santa Clara County, and most obviously, for the nearly one in four County residents who are on Medi-Cal, California’s implementation of the federal Medicaid program.”
Apparent Support for the Measure, But Does Afternoon Meeting Reflect Public Views?
All but one of the commenters from the public endorsed the tax measure.
“Sunnyvale Community Services [supports] this proposed sales tax ballot measure,” said Marie Bernard, executive director of Sunnyvale Community Services. “As one of the [county] emergency assistance network agencies, we see firsthand every day how families, low-income families and seniors are struggling. The cuts to Medicaid and other federal programs have already hurt those most in need. We are committed to helping people understand healthcare is a basic human right.”
The one critic of the tax speaking at the meeting was Pacifica resident Dan Stegink.
“It would be nice if this did something for healthcare, but it’s not dedicated. It can be used for anything,” he said. “You’ve had six months to get this done, and you’re bringing a last minute, dead of night, 24-hour tax measure here. In venture capital, when people come to us at the last minute [and] say we don’t have the money, we know they’re about to go bankrupt.”
As a general tax, the proposed measure only requires a simple majority vote to pass. A tax earmarked specifically for health systems would require a 2/3 majority.
One speaker noted that the meeting’s time — 2 p.m. — wasn’t conducive to public participation.
“I am just incredulous that this meeting is being held in the middle of the afternoon, when most people are at work,” said former Saratoga Mayor Stan Bogosian. “If you’re talking about something as important as a tax revenue measure, this [should] be offered at a time when folks can actually participate. I have no problem with the advocacy groups that have come forward today, but this is not public participation in the middle of the day.”
County Budget Threatened With Catastrophe
The H.R.1 cuts turn what was already a county budget structural deficit — ongoing disparity between revenue and spending — into a catastrophe. This prompted a discussion of the overall county budget deficit, with Supervisor Abe-Koga raising the larger question of how often Supervisors can keep asking taxpayers to approve short-term fixes.
“If we don’t do our due diligence, we can’t provide services,” she said. “We can’t just continue to keep going back to them [taxpayers]. So I appreciate the compassion of our community. I think that there is quite a bit of support for this [tax]. But that support seems to wane as we continue the same practice. So I’m saying, Look, we can’t do business as usual.”
No Choice But to Act
Right now, the county’s back is up against the wall, said Board President Otto Lee.
“Counties are disproportionately impacted and most hurt by H.R.1 because it specifically targets cuts to safety net programs,” Lee said. “We’ve already cut the fat and will be forced down to the bone marrow. We will have to talk about shutting down health care clinics, even county hospitals.
“I’ve never been a fan of raising sales tax, because it’s regressive,” Lee continued. “But as a county, we have few options for generating additional revenues.”
Of the 9.9% sales tax paid in Santa Clara County, only 1/8 of a percent goes to the county. The 5/8% increase would raise county collections to 3/4%, Lee said, adding that other counties, such as Alameda, have higher total sales taxes.
“We really have no choice but to act now,” said Lee. “We must act boldly to save the county from financial ruin. I’ve heard that some counties are talking about bankruptcy because of H.R.1. We don’t ever want to have to have that discussion.”
The vote to place the sales tax measure on the November ballot passed unanimously.
Carolyn Schuk can be reached at carolyn@santaclaraweekly.com.
Related Posts:
Santa Clara County Takes Over Regional Medical Center
Santa Clara County Adopts Budget for 2024-25
0 comments