For decades, the City has faced a structural budget deficit, where the many sources of revenues that come to the City do not cover the cost of ongoing services to residents. In November, City of San Diego voters were asked if they would increase the sales tax paid within the City by one cent per every dollar spent, or a 1% increase. This was Measure E.
While the City has the lowest sales tax rate in the County, and one of the lowest in California, Measure E still lost by a razor thin majority, with 50.3% of City of San Diego voters saying NO and 49.7% voting YES. Out of more than 573,000 votes cast, Measure E fell just 3,500 votes short of passage, mainly due to what the Voice of San Diego said was, “the stunning lack of interest in voting” overall.
Measure E would have generated an additional $400 million annually in general fund revenue to the City. Unfortunately, there are consequences to this decision by the voters, and the Mayor and City Council must now navigate those impacts by right-sizing (cutting) the City’s expenditures to match its revenues.
MEA has been in constant communication with the Mayor and Council on the best path forward, and we will continue to engage at every level throughout the budget process.
MEA strongly believes that the City can address its budget challenges WITHOUT laying off employees. MEA’s advocacy related to the budget (cutting services, cutting vacant positions, raising revenue, etc.) is provided with the thought of minimizing/eliminating the need for layoffs specifically in mind.
With that said, we are aware of rumors and “information” floating around the City and in some media outlets speculating that layoffs are coming. Please don’t listen to those rumors and know that decisions related to the City’s budget have not yet been made. The Mayor and City Council will ultimately make those decisions during a budget process that will play out over the next several months and beyond.
MEA will continue to engage in that process going forward and will continue to update you as decisions are made and reliable information becomes clearer. For questions, more information, or to discuss this or any other issue, don’t hesitate to reach out to MEA at info@sdmea.org or 619-264-6632.