May 9, 2006
SUBJECT: Positions on State and Local Ballot Measures for the June 2006 Election
REPORT IN BRIEF
This report provides an opportunity for the Sunnyvale City Council to take positions on state and local measures on the June 6th Ballot. The report summarizes each of these measures, provides the City’s adopted policy on the issues, the position of the League of California Cities (LCC) when appropriate, and a staff recommendation. Generally, staff only recommends a position on a ballot measure if there is an existing City policy on the issue or significant impact on the City.
Staff recommends the following positions on the ballot measures discussed in this report:
State Ballot Measures:
Proposition 81: Support
“California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2006.”
Proposition 82: Support
“Preschool Education. Tax on Incomes Over $400,000 for Individuals; $800,000 for Couples. Initiative Constitutional Amendment and Statute.”
Local Ballot Measures:
Measure A: No Position
“Sales Tax -- County of Santa Clara”
Measure B: Support
“Operation of Parks -- County of Santa Clara”
Measure C: Support
“School Bond -- Foothill-De Anza Community College District”
BACKGROUND
Staff is providing this report to afford the Sunnyvale City Council an opportunity to take a public stand on state and local measures on the June 6th 2006 ballot. Staff’s recommendations are based on existing City policies from documents such as the General Plan and the Legislative Action Positions. Past positions of the Council also guide staff recommendations. New positions taken by the Council will become official policies of the City and will be added to the Legislative Advocacy Positions (LAP).
EXISTING POLICY
Goal 7.3C: Participate in intergovernmental activities, including national, state and regional groups, as a means to represent the City’s interests, influence policy and legislation, and enhance awareness.
7.3C.1: Represent City policy in intergovernmental activities in accordance with adopted policy guidelines.
DISCUSSION
Proposition 81: California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2006.
Summary:
The California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2006 was proposed in response to the growing demand in California for public library services, to help improve literacy and provide more educational opportunities for community members throughout California. If approved, library jurisdictions would be able to apply for $50,000 to $20 million per library construction or renovation project. The total available for such projects throughout the State of California would be $600 million. The funding would be awarded as a matching grant, 65% from the State and 35% from the local jurisdiction. The funds would cover construction-related capital costs on a reimbursement basis.
Proposition 81 prioritizes specific types of projects. Under previous legislation, Proposition 14, there were a number of public library projects that were reviewed and prioritized but left unfunded due to the lack of adequate resources. Under Proposition 81, a maximum of $300 million would be reserved for those pending library projects as first priority. Another $25 million would be reserved for new public library/school joint use projects which could involve a public education institution such as a K-12 school district, County Office of Education, Community College District, California State University Campus or University of California Campus. The remaining $275 million would be allocated to library jurisdictions submitting new applications for construction or renovation projects.
In order to pass, it is required that 50% + 1 of all voters in California vote “Yes” for Proposition 81. If the Ballot Measure passes, a new board will be established to develop the application process, evaluate the applications requesting funds for construction and renovation projects, and determine the amount of the awards. The new board will be composed of the State Librarian, the Treasurer, the Director of Finance, an Assembly Speaker Appointee, a Senate Rules Committee Appointee, and two members appointed by the Governor.
Staff Analysis:
Council has previously voted to support the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2006 through the LAP, RTC No. 06-038. Based on information compiled through a survey of library jurisdictions by the California State Library, there is a clear need in California for new and improved library facilities in order to offer improved literacy and education-related services.
It is anticipated that there would be a number of benefits to communities that would receive funds from Proposition 81:
- More homework centers and safe places for children to go after school
- College and career centers for students and adults entering the workforce
- Expanded spaces for children’s reading programs
- Better services for senior citizens
- Improved access for people with disabilities
- Updated technology infrastructure and increased access to computers and the Internet
- More programs to combat illiteracy and to support literacy at all levels
- New and innovative partnerships between public libraries and schools
Fiscal Impact:
No direct fiscal impact on the City of Sunnyvale.
However, should Proposition 81 pass, and if Council determines that there is a need for library construction or renovation and Council chooses to apply for Proposition 81 funding, the potential impact would be that 65% of the capital costs related to the construction project could be available on a competitive basis for grant funding from the State of California for up to a maximum of $20 million.
City Policy:
The Library Sub-element of the General Plan was adopted by Council on April 8, 2003. The development of this 10-year strategic plan involved an extensive, public process that formed the foundation of a community vision for library services. The Library Sub-element includes Goals, Policies, and Action Statements that are specific to issues that Proposition 81 seeks to address: library facilities, collaborations to meet the needs of the community, and support for literacy and educational opportunities.
Goal 6.2D: Maintain library facilities and materials that are easily obtainable and appropriate based on changing community needs.
Goal 6.2F: Foster a collaborative organization to attain a high performance and customer-focused library.
Policy 6.2D.2: Maintain a full service library adequate to meet community needs.
Action Statement 6.2D.2a: Study the space needs of the library as the population grows and diversifies, and recommend the most appropriate configuration for services and facilities.
Action Statement 6.2D.2b: Provide a variety of areas in the library to permit individual and group study, browsing and comfortable seating for recreational reading.
Action Statement 6.2D.2c: Provide a children’s room environment unique to the needs of children and families.
Action Statement 6.2D.2d: Give high priority to developing library facilities where the library is a common focal area for the community and to provide meeting spaces for community activities, public discussion and programs for groups of different sizes.
Action Statement 6.2D.2f: Periodically assess the adequacy of public points of contact for library services.
Action Statement 6.2A.2b: Promote childhood literacy.
Also, Council recently adopted an LAP to support bond act funding for library construction in California. The LAP was adopted by Council on February 7, 2006, RTC No. 06-038.
LAP 6.2 Library (12): Support passage of the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2006. [2004 Library Staff Recommendation]
The Council as well as the Sunnyvale community supported a similar California Ballot Measure, Proposition 14, in the March 2000 Election. Proposition 14, which passed, was approved in Sunnyvale by 64% of the voters.
LCC Position: Support
Staff Recommendation: Support
Proposition 82: Preschool Education. Tax on Incomes Over $400,000 for Individuals; $800,000 for Couples. Initiative Constitutional Amendment and Statute.
Summary:
The Preschool Education ballot initiative proposes using the existing public/private preschool system to establish voluntary public preschool program for all four-year-olds in California. The new state program would be funded by an additional 1.7% tax on individual income over $400,000 and couples’ income over $800,000 (less than 1 percent or about 100,000 of total personal income taxpayers in California). The initiative mandates specific qualifications and compensation levels for teachers and requires the development of a system of accountability to the public. The initiative establishes:
- the right for all children to receive one year of voluntary state-funded preschool (at least 3 hours a day for 180 days a year) beginning 2010;
- increased standards for preschool teachers by requiring all preschool teachers to have a four-year degree by 2014 and a new early learning credential by 2016; and
- funding through an additional 1.7% tax on individual income over $400,000 and couples’ income over $800,000 and uses the new tax revenues solely for the new preschool program.
Staff Analysis:
Proponents of the Preschool Education initiative argue that preschool programs have a profound, positive impact on a child’s brain development, readiness for school and long-term academic success.
According to proponents, the primary benefit of a statewide program is that preschool education would be available to all families regardless of income. Supporters claim studies indicate that preschool education increases a child’s chances of succeeding in school by:
· reducing the likelihood of being held back a grade and needing special education;
· increasing high school graduation rates;
· reducing teen pregnancy rates; and
· increasing standardized test scores.
In Sunnyvale, the cost of preschool is approximately $6,000 annually for a part-time program which prohibits many families from accessing preschool programs. Currently, Sunnyvale families earning less than minimum income requirements (i.e., $2,650 monthly gross income for a family of four) are eligible for state preschools operated by the Sunnyvale School District at Columbia Middle School and at Cherry Chase Elementary School. However, these sites have the combined capacity to serve 55 preschool age children. 150 children are currently on waiting lists and many of these families have expressed frustration at the lack of alternatives for free or low-cost preschool for their children.
Opponents of the Preschool Education initiative are skeptical of a public preschool system for several reasons. First, opponents contend that California has many other pressing education needs in its K-12 system that could be funded by the additional $2.4 billion in new spending. Second, opponents argue that according to California’s nonpartisan Legislative Analyst and a study by the RAND Corporation, approximately 65% of preschool age children in California already attend preschool and supporters of proposition 82 admit the measure will likely only increase enrollment to 70%. Moreover, the Legislative Analyst predicts the new program will cost as much as $8,000 per student for a part-time, three-hour per day program (almost as much as we spend per student for full day K-12 instruction). Finally, opponents state that while the Preschool Education proposition is purported to be “free”, there is a provision in the in the proposition that allows the state to assess a fee on parents if the program costs more than expected. Alternatively, the state legislature could also raise taxes on all of us to fill the gap.
Fiscal Impact:
No direct fiscal impact on the City of Sunnyvale.
Collaborative opportunities may arise with local school districts and child care related organizations charged with implementing the new program. Staff anticipates that these collaborative opportunities can be accommodated within the 2006/2007 Youth, Family & Child Care Resources operating budget.
City Policy:
Goal 5.1H.1: Support efforts to increase the availability, quality and affordability of child care in North Santa Clara County.
LAP 5G/H Health and Social Services (24): Support Universal Preschool legislation that requires the provision of free, voluntary preschool for all four-year olds, provided that the legislation does not have a negative financial impact on the City of Sunnyvale. [Council Action 11-1-05 RTC 05-326]
LCC Position: No Position
Staff Recommendation: Support
Local Ballot Measures
Consistent with other ballot measures, no public funds have been or will be used to endorse or oppose these measures.
Measure A: Sales Tax -- County of Santa Clara
Summary:
Measure A asks voters to approve a one-half cent sales tax increase for 30 years for such general county purposes as:
- County hospital and clinics;
- Trauma and emergency services;
- Affordable homes for families and seniors;
- Health insurance for uninsured children;
- Prevention programs for at-risk youth, families and seniors;
- Transportation improvements approved in city and countywide transportation plans; and
- Services for abused and neglected children.
The measure would also create a Citizens Oversight Committee to help ensure fiscal accountability by reviewing an Annual Audit.
Staff Analysis:
The County of Santa Clara maintains that it has eliminated 1,200 jobs and made deep service cuts in order to close a $640 million budget gap over the past four years. This has resulted in fewer sheriff deputies on patrol, a lower number of doctors, nurses and other medical professionals on duty at county hospitals and clinics, longer emergency room wait times, longer wait times at traffic lights, and decreased road maintenance. Further, the demand for services is growing while state and federal funding for mandated programs continues to decline. A sales tax increase will help ensure that social service and infrastructure needs are met for the County’s residents.
Proponents argue that Measure A will generate critical local funds for high-priority local needs (funds that by law cannot be taken away by the state or federal government). Such funding will benefit those who directly access county services, as well as local governments within the County that may gain vital infrastructure funding. In terms of indirect impacts, Sunnyvale residents who avail themselves of the County’s social services, public safety and public health programs may benefit from increased funding streams.
Opponents argue that increasing the sales tax will unfairly burden low income families and seniors who need the County’s services the most. Critics of the measure also point to the fact that the County’s revenues are increasing (ostensibly suggesting that they do not need the funds), and that the Valley Transportation Authority (VTA), characterized as an inefficient agency, will be a major beneficiary of the increased sales tax. Furthermore, there is potential loss to both the City and the County if residents decide to shop outside of Santa Clara County due to lower sales tax elsewhere, or if local businesses decide to relocate as a result of lost revenues due to the increased sales tax.
A one-half cent increase would bring Santa Clara County’s sales tax rate to 8.75%, in line with Alameda and Contra Costa Counties. Sales tax rates for the other Bay Area Counties range from 7.25% to 8.50%.
Fiscal Impact:
The City of Sunnyvale will likely gain direct and indirect financial benefits from a countywide sales tax increase, but this would be difficult, if not impossible, to quantify. As a countywide tax measure for general purposes, the County has the ultimate discretion on use of funding. To the extent that increased general purpose revenues are utilized for transportation infrastructure improvements, Sunnyvale may receive direct allocations from the County to fund Sunnyvale projects (for example, when the voters passed Measures A and B in 1996 which increased the County sales tax rate by 1% to 8.25%, Sunnyvale received approximately $8 million for pavement management and other transportation purposes, including the Sunnyvale Caltrain Station). There is, however, no guarantee that Sunnyvale would receive any funds.
City Policy:
The City has no direct LAP or other specific policy that would indicate a support or oppose position for a County ballot measure to increase the sales tax for general tax purposes.
Staff Recommendation: No Position
Measure B: Operation of Parks -- County of Santa Clara
Summary:
Measure B would allow, without increasing taxes, the Santa Clara County Charter to be extended to provide for the acquisition, development, maintenance, and operation of parks, by continuing the annual transfer from the general fund of an amount estimated to equal $0.01425 per one hundred dollars of assessed valuation of all real and personal property commencing on July 1, 2009 for twelve years.
Staff Analysis:
This measure would continue the current portion of property tax for the Santa Clara County Park System. The most direct impact the county park system has on Sunnyvale is its lease of lands for Baylands Park to the City. Should the City or County choose to not renew the lease when it expires in April 2011, funds provided by the Park Charter Amendment could assist the County in financing the operations and maintenance of Baylands Park along with all the other county parks that are used by Sunnyvale residents.
Fiscal Impact:
No direct fiscal impact on the City of Sunnyvale.
The county parks system fulfills a need for regional open space and trails serving all county residents that are not met by local city park systems, including Sunnyvale’s.
City Policy:
Open Space and Recreation Sub-Element Policies C.1: Support activities and legislation that will provide additional local, county, and regional park acquisition, developments, and maintenance and recreational opportunities.
Open Space and Recreation Sub-Element Policies C.2: Support public and private efforts in and around Sunnyvale to acquire, develop and maintain open space and recreation facilities and services for public use.
LAP 2.2 Open Space (1): Support state and federal funding programs for the acquisition, development and preservation of parklands and open space including river parkways, creeks, stream improvements and wetlands habitats. [First Appeared 1993/2002,2003,2006 NLC Resolution; Modified/2003 Parks & Recreation Staff Recommendation]
LAP 2.2 Open Space (5): Encourage open space districts to purchase urban/suburban lands as appropriate and feasible. [1998-Council suggestion]
In addition to the aforementioned City policies, Council adopted a Resolution in support of Measure B at its April 25, 2006 Council meeting.
Staff Recommendation: Support
Measure C: School Bond -- Foothill-De Anza Community College District
Summary:
The passage of Measure C would allow the repair/upgrade of Foothill and De Anza Colleges, improve job training/university transfer, and would allow Foothill-De Anza Community College District to issue $490.8 million in bonds, at legal rates, with mandatory audits, citizen oversight and no money for administrators' salaries.
Staff Analysis:
This measure would authorize Foothill and De Anza Colleges to issue a bond for repairs/upgrades and improved job training. The most direct impact would be to residents of Sunnyvale attending Foothill and/or De Anza Colleges or participating in job training programs.
Fiscal Impact:
No direct fiscal impact on the City of Sunnyvale.
City Policy:
Goal 5.1E: Support efforts to improve the availability and quality of education made available in Sunnyvale.
Policy 5.1E.1: Support educational reforms that will cost-effectively result in better education.
Policy 5.1E.7: Support reforms to improve educational quality.
Policy 5.1E.8: Support appropriate funding for community colleges serving Sunnyvale.
LAP 5.E/F Education and Training (10): Support increased flexibility and resources for the local community college system that will enhance retraining of the dislocated worker adult population. [2005 staff recommendation]
Staff Recommendation: Support
FISCAL IMPACT
Proposition 81: None
Proposition 82: None
Measure A: Potential gain of direct and indirect financial benefits
Measure B: None
Measure C: None
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk's Office.
ALTERNATIVES
1. Adopt the following positions on the ballot measures:
State Ballot Measures:
Proposition 81: Support
Proposition 82: Support
Local Ballot Measures:
Measure A: No Position
Measure B: Support
Measure C: Support
2. Adopt alternative positions on the ballot measures.
3. Take no action at this time.
4. Other action as directed by Council.
RECOMMENDATION
Staff recommends Alternative 1, adopt the positions listed above on the ballot measures. A statement explaining staff’s recommendation on each measure is noted below.
Proposition 81: Support
“California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2006.”
Staff recommends support of Proposition 81, The California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2006, because it is consistent with the outlook and values expressed by Council and the community in their support of literacy, education and library services, as expressed in the Library Sub-element of 2003 and by the results of a previous, similar ballot measure.
Proposition 82: Support
“Preschool Education. Tax on Incomes Over $400,000 for Individuals; $800,000 for Couples. Initiative Constitutional Amendment and Statute.”
Staff recommends support of Proposition 82, the Preschool Education ballot initiative, because it is consistent with previous Council positions and existing City policy.
Measure A: No Position
“Sales Tax -- County of Santa Clara”
Staff recommends no position on Measure A due to a lack of existing City policy specific to the ballot measure. As a countywide tax measure for general purposes, the County has the ultimate discretion on use of funding and there is no guarantee that Sunnyvale would receive any funds.
Measure B: Support
“Operation of Parks -- County of Santa Clara”
Staff recommends Council support Measure B because of existing relevant City policy.
Measure C: Support
“School Bond -- Foothill-De Anza Community College District”
Staff recommends Council support Measure C because of existing relevant City policy.
Reviewed by:
Approved by:
Amy Chan
City Manager
Attachments
A. Chart of Select June 2006 Ballot Measures (.doc)