SDN Chamber opposes Proposition D

Citing hardship on residents and businesses, San Diego North Chamber of Commerce is among those opposing Proposition D.

“… now is not the time to consider raising the sales tax on the citizens and businesses of San Diego,” wrote chamber president and CEO Debra Rosen in an Aug. 24 press release.

“Most families and businesses have tightened their budgets as much as possible and a sales tax increase will only harm their livelihood further.”

The City Council approved the proposition 6-2 on Aug. 4. It seeks a half-cent sales tax increase if a series of reform measures are implemented. If approved by a majority of voters in November, the city’s sales tax would rise from 8.75 to 9.25 percent. The hike would remain for five years and is projected to add $103 million annually to the city’s general fund.

The sales tax increase is opposed by several groups, including the San Diego County Taxpayers Association. Among those working to defeat it is City Councilman Carl DeMaio, who along with Councilman Kevin Faulconer, cast the two no votes.

Rosen said the chamber’s board decided to oppose Proposition D after a recent forum with City Councilman Todd Gloria, who supports the tax increase, and DeMaio.

“(We oppose) because of the lack of guaranteed benchmarks, and clarity of where funds would be allocated,” Rosen said, adding members are also concerned over “the lack of guarantees in place as to where the money raised through a sales tax increase will be allocated.

“Money said to be raised to fund vital services could in the future be used to pay inflated pension debt and other obligations,” Rosen said. “Like the businesses and citizens of San Diego, the city needs to live within its budget and not abdicate its responsibilities.”

Proposition D opponents have said its reform measures include provisions that are in the process of being implemented. For example, managed competition was approved by voters in 2006.

“We believe this initiative (managed competition) should be implemented and not held up by proponents of Prop D as their rational for leveraging the businesses and citizens of San Diego,” Rosen said.

She also said the tax could have “the unintended consequence of driving commerce from the region, causing an even more detrimental climate for business and further perpetuating a cycle where a tax increase becomes necessary.”