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If Financial Reform Conditions Are Met, Authorizes Temporary One-Half Cent Sales Tax
City of San Diego
Majority Approval Required
Fail: 137,010 / 38.1% Yes votes ...... 222,166 / 61.9% No votes
Index of all Propositions
|Information shown below: Summary | Fiscal Impact | Impartial Analysis | Arguments ||
To help offset severe state cuts and help restore essential services, including police, fire and street resurfacing, shall the City of San Diego enact a temporary one-half cent sales tax for up to five years, only if the independent City Auditor certifies conditions have been met, including pension reforms and managed competition?
The tax increase would not be operative until the City Auditor certifies that the following conditions have been met:
2. The City adopting, by ordinance, a managed competition guide for various City services.
3. The Mayor completing a study of costs to the City of the Deferred Retirement Option Plan (DROP) program and presenting findings to the City Council. If the study finds DROP is not "cost neutral," the City will initiate "meet and confer" proceedings with labor unions to make DROP cost neutral.
4. The Mayor soliciting requests for qualifications from bidders to assume operations of the Miramar Landfill.
5. The City adopting an ordinance eliminating terminal leave for City employees. Terminal leave allows employees to remain on the payroll when they end employment, using accrued leave, instead of taking a lump sum payment. Under the ordinance, upon separation from the City, an employee may only cash out accrued leave.
6. The City reducing the total cost of "retirement offsets" existing as of June 30, 2010 for employees represented by labor organizations.
7. The City reducing its retiree health care liability existing as of June 30, 2010.
8. The Mayor soliciting proposals from bidders to provide the City's information technology services.
9. The City establishing a second tier pension plan for new employees represented by the firefighters union, comparable to one in effect for new police officers.
10. The City adopting an ordinance that would allow all City employees to voluntarily select or switch from a current retirement plan to a new alternative Defined Contribution Plan. The new plan may be subject to IRS and other governmental approvals, but obtaining such approval is not part of this condition.
News and Analysis|
San Diego U-T
|Arguments For Proposition D||Arguments Against Proposition D|
Revenue from Proposition D will help maintain and restore essential City services such as fire, paramedic, police, library hours and pothole repair, end fire station brownouts, and help improve 911 emergency response times.
By law, funds from this temporary five-year measure can only be collected after the independent City Auditor verifies the City has initiated 10 financial and pension reforms that can produce hundreds of millions of dollars in savings.
City budget cuts totaling over $180 million have led to rolling brownouts at fire stations, delays in 911 emergency response times, and loss of nearly 200 police, fire and paramedic positions.
But San Diego still faces an ongoing budget deficit of over $70 million next year - caused in part by Sacramento seizing tens of millions of local tax dollars. By law, Proposition D's funds cannot be taken by Sacramento.
Proposition D establishes 10 fundamental financial reforms - among the most comprehensive ever undertaken by a California city, including reforming City pension and retirement benefits.
Because of the risk of further drastic service cuts, public employee unions are offering historic concessions. Implementing Proposition D reforms could reduce pension and healthcare liabilities by up to $500 million and reduce taxpayer costs for pension and retiree healthcare by up to $50 million annually.
Longtime adversaries - Mayor Jerry Sanders and Councilmember Donna Frye - along with firefighters, police, business and labor leaders concerned about protecting public safety, jobs and our economy, support Proposition D because it is the most fiscally responsible and realistic alternative to avoid further devastating cuts in public safety and other essential services.
Prop D: More WASTEFUL Spending