Former Modesto City Councilmember Bruce Frohman always offers thoughtful analysis on issues involving local government. Below, he argues against Measure H, Modesto’s proposed sales tax increase. Following Bruce’s argument, The Valley Citizen presents its own argument in favor of Measure H.
Ever since Proposition 13 passed in 1978, cities throughout California have seen their budgets shrink via inflation.
While total dollars in Modesto’s annual budget have swelled from about $200 million in year 2000 to $500 million now, the rate of inflation and increase in operating costs have been greater than the rate of annual budget increases.
Thus, no one should doubt that Modesto can use the proposed increase in the sales tax. The funds are needed to replace tax revenue lost as a consequence of the State of California and Stanislaus County diverting tax revenue away from the cities. An alternative is to continue cutting services, which has already occurred to a substantial extent.
So why oppose the sales tax revenue increase?
Harm to Low-Income Citizens
Modesto has a large population of low-income citizens who will be hurt more by the sales tax increase than by the cut in services. How many have delinquent utility bills? How many live paycheck to paycheck and can barely pay rent or put food on the table?
A one percent increase in the sales tax will hurt minimum wage workers and deprive them of necessities. If the annual sales tax adds $150 a year to the cost of goods, ten hours of extra labor will be needed by the worker just to cover the tax increase.
Fact: The sales tax is the most regressive form of taxation because it adversely affects low-income citizens the most.
Lost Proposition 13 Revenue has been Replaced
While Proposition 13 reduced future property tax collections, other taxes and fees within the State of California have more than made up for revenue not collected due to Proposition 13. In every tax and fee increase, Proposition 13 has been blamed and used as the justification.
The dishonest aspect of the entire tax collection system is the State of California and Stanislaus County have retained the lion’s share of tax and fee increases while letting the cities starve for money. Then, when cities cut services, the higher-level governments justify more taxes using the bogus excuse of service deficiencies as caused by Proposition 13.
We can discuss at length how Caltrans wastes billions of dollars with ineffective and inefficient road construction projects while Modesto cannot even afford to repair and repave all its streets. If Cal Trans were abolished and all the money were given to the cities, we would see enormous improvements in services statewide.
Other state agencies, like the unemployment department, also waste taxpayer money by using inefficient and obsolete computer operating systems.
Since Proposition 13 passed in 1978, the sales tax has risen from 6 percent to the current 7.785 percent in Modesto, up to 10 percent in some Bay Area Counties, the gasoline tax has increased, vehicle registration fees are up, income from property tax due to inflation and capital gains tax revenues are up, and property tax reassessments due to resales have increased total revenue state wide to the point where California had a budget surplus of $97.5 billion dollars last fiscal year.
So, with so much tax revenue at the state level, why aren’t the cities getting more help? Why should we vote ourselves higher taxes when the total tax revenue within the state is enough money to accomplish the mission?
Money equals power. The politicians running the state are intoxicated with power and do not see what needs to be done. They are insensitive and do not exercise the responsibility and duties of the offices they hold.
This year’s state tax rebate is a travesty when cities have so many unmet needs. The rebate is a blatant political tactic to buy votes and is not responsible government.
Dubious Modesto City Budget
As a former Modesto City Council Member, I am reluctant to criticize the present Council. I am sure that they believe they are doing the best possible job with their half a billion dollar annual budget.
A previous City Council reinstated infrastructure subsidies to the single-family residential housing industry. The city is subsidizing growth in housing that is sold to out of area buyers, not to the multi-family unit buildings needed in the community.
The Centre Plaza convention center continues to be a drag on the annual budget. It has never showed a profit or ever generated the promised economic benefit. Either it should be a moneymaker or it should be sold. Now.
In spending money on homeless programs, the City has taken over responsibility for programs historically run for the homeless by Stanislaus County and for the mentally ill by the State of California. While it is ok for the city to manage the programs, the higher levels of government need to reimburse Modesto for the operating costs. It is not ok to cut essential services to fund non-traditional programs.
Modesto needs to join other cities in an all-out effort to obtain a greater share of state and county tax revenues. The present distribution system is beyond unfair — it is intolerable.
Until tax revenues are reallocated within the various levels of government inside the state and wasteful expenditures at the state level are eliminated,
support of any local tax increase is like throwing money down the drain. In the short term, local services will be covered. In the long term, financial shortfalls will return and another sales tax increase will be in our future. The problem will be kicked down the road when it should be addressed. NOW.
The Valley Citizen Supports Measure H, by Eric Caine
Few Modesto residents today remember former Mayor Ted Brandvold’s 100 Day Review of the city budget. Conducted in 2016, the review was going to expose waste and find money to hire more firefighters and police officers. What it found was what the previous Mayor Garrad Marsh had been telling voters all along: there was little, if any, waste in the Modesto City Budget.
Grandstanding about government waste has been a tried and true campaign tactic for as long as anyone can remember, but Ted Brandvold soon learned the hard lesson that most Valley cities realized long ago: You can’t pinch pennies when there aren’t any pennies to pinch.
Modesto has been de facto bankrupt for years. It’s avoided the formality of declaring its dire financial status only through severe cuts to public safety and deferred maintenance on infrastructure and the city’s urban forest.
We agree with many of Bruce Frohman’s points about the City of Modesto Budget and urban funding in California in general. Yes, the State of California and Stanislaus County shortchange cities with inequitable funding and distribution of resources. Like Bruce, we’re also against the punitive effects of regressive taxation. However, when the patient is on life support in the Emergency Room, arguing about causes and distant remedies only worsens an already grave situation.
Modesto is ranked the worst of all cities of comparable size in traffic accidents per capita. Bruce argues that the sales tax proposed in Measure E will hurt low-income residents, but so do car crashes and pedestrian injuries resulting from insufficient traffic control. In fact, the poor suffer disproportionately when funds for public safety are cut and cut again.
Lower income residents tend to live in high crime neighborhoods where there’s a greater need for police services. They’re less likely to have comprehensive insurance coverage when involved in an auto accident, for both health care and their vehicles.
Poor roads are more damaging to the older vehicles driven by low-income residents, and the presence of homeless people and trash in public parks too often deprives low-income residents of one of the few inexpensive choices they have for recreation. Closed restrooms and the harmful effects of public defecation affect low-income people to a far greater degree than those with enough money to afford entertainment venues like the Gallo Theater for the Arts.
We agree with Bruce Frohman that Caltrans dollars are too often ill-advisedly spent, but any changes there are years away. Bruce’s proposal to abolish Caltrans altogether will never happen.
Modesto needs help now. Deferred maintenance of Modesto’s roads, sidewalks and urban forest only means an almost daily cost increase in the form of more expensive repairs when repairs finally come. Deterioration accelerates as time passes.
Bruce has mentioned past city councils and things they might have done better, but no city council in Modesto history ever had to endure the devastating effects of a pandemic that killed over a million American citizens and devastated small businesses everywhere. With Nick Bavaro joining the Council after next election, there will be three Councilmembers who have been successful local businesspersons. Bavaro will join Chris Ricci and David Wright on a council that offers in-house experience getting the greatest return from every investment dollar.
San Joaquin Valley towns like Modesto are inordinately dependent on sales tax revenues from restaurants, retail stores and other vendors hard hit by lockdowns. The turn to online shopping when many shoppers thought it too perilous to venture into traditional shopping venues was yet another hit.
Bruce concludes that budget deficits need to be addressed now, but proposed solutions like selling Centre Plaza and upgrading computer systems at the unemployment department are most likely years away; selling Centre Plaza may never happen.
We agree that Stanislaus County must do its part in addressing homelessness in Modesto, especially the manifold problems with mentally ill homeless people. However, unless Modesto Mayor Sue Zwahlen and Stanislaus County Supervisor Mani Grewal act more aggressively on behalf of their constituents, the county will continue its long history of neglect. Even in the unlikely event that Zwahlen and Grewal step up, money for homelessness will not address public safety, infrastructure, urban forest and other urgent needs. These needs are critical and immediate.
Modesto’s Measure H sales tax proposal exempts groceries and prescription drugs. These exemptions will lighten the tax burden on low-income families. Those same low-income families will benefit greatly from enhanced public safety and improved infrastructure.
The City of Modesto has had decades of cuts to law enforcement and deferred maintenance for roads, sidewalks, parks and its urban forest. Its sales tax is lower than most surrounding cities’. Modesto can’t survive more cuts and consequent declines in public safety and quality of life. Modesto needs Measure H now.
Although I share many of Bruce Frohman’s concerns, I believe the city tax increase is necessary to bring our rate to what’s being levied in several other cities throughout our County.
Why is Modesto, the largest city in Stanislaus County and a shopping and entertainment hub, receiving less tax revenue per dollar while serving other cities’ residents who use our roads and public facilities?
I won’t even get into the disappointing tenure of Ted Brandvolt, a set back we could ill afford, and I’m hoping Mayor Zwahlen and the Council writ large will push the County to step up and contribute its fair share of the property taxes apportioned for the ENTIRE County and not just the unincorporated areas. The disparity between what’s allocated to the lower populated rural areas versus the more heavily trafficked cities is appalling and is more visible in Modesto due to its being a locus of activity.
I have great faith that Nick Bavaro will add his experience and seasoned opinions to the benefit of all of Modesto’s residents and that any increase in funds will be managed judiciously.
That said, barring a modestly increased tax base, boosting the numbers of officers on the streets and firemen to fill both those departments’ much-needed open positions will be difficult to fund should the tax proposal fail.
As mentioned, food is not taxed, so my concern about the least among us doesn’t increase dramatically as there should be no impact in that critical area. So let’s not fall into the trap of thinking that raising our city tax modestly will cause children to go hungry, comments I’ve heard repeated by a few lesser informed citizens.
We must pass the tax increase. Let’s consider that much of the benefit will come not just from Modesto residents, but from folks that come in from neighboring communities to dine, shop and enjoy the use of our public facilities, people who are already paying a sales tax higher than ours in their own hometowns!
Groceries have always been tax exempt! The city has neglected the low income population for decades! Answer me this: Do you know the original plan for “Village One”? Before the city caved to the developers? Since the late 1980’s , the city has been building homes which local folks can not afford! I agree Modesto needs help. But you will not dump that burden on our most vulnerable citizens. Modesto has lost its values , the only thing important now is money! The rich in this town decided to build themselves a great music venue so they could bring into Modesto the stars they wanted to see. They pat themselves on the back all time. Too bad most citizens can’t afford to get in the door! Oh, yea, at the same time the rich were building their “shrine”, they would not help keep the YMCA open. Tell you what, you change this Measure so that any new tax only applies to the rich and we might be able to chat.
Thank you
Opposing Measure H is equivalent to supporting defunding of public safety (police and fire). With 81% of the budget going to public safety and deficit spending this fiscal year of over 8 million dollars, there is only one category to balance the budget and that is deep cuts into public safety. Say goodbye to what little traffic control we have in Modesto. Say goodbye to CHAT, HEAT and Park Rangers. Say goodbye to any further discussions about safe areas for the homeless. Say goodbye to any funds directed to tree, park and road maintenance. Two points of information for the voters of Modesto. (1) Current sales tax in Modesto is 7.85%. Of that 7.85%, only 1% goes directly to Modesto. 6% to the state and .085% to the county. (2) groceries and medication are exempt from Measure H sales tax. Thank you, Nick Bavaro
Good Day, Nicholas
You mention discussions about safe areas for the homeless, are you aware of where any such dialog is happening, other than in the Valley Citizen posts and comments, and around kitchen tables?
Where do you come down on the subject continuum of safe ground for those homeless existing out in the raw off grid? You must have given abundant thought.
Please enlighten us.
My thoughts are as follows: Stanislaus and Modesto elected officials are in collective denial about the extent of trauma living houseless has on weary souls, add to that the uptick in turbulent times they continue to have to endure.
This county, and the cities and rural areas it is comprised of, must provide safe ground for these masses (no longer the few). Other counties can tend to their own weary souls. So what they do should not hold up what we must do.
We need to restore these weary souls. They will not simply spring back to normal. We need to be so keen on these fragile souls.
I sincerely suggest, if I may, we shift perspectives to see these safe grounds for what they have to be. SOUL CARE SPACES. We must get our hearts and minds around providing hope for their futures as we restore their weary and wary souls. Anything else is in-humane. People must be accorded what freedom they show they can handle.
Since hearing from a federal person (who is in the know): “Building construction is dead in the water,” for the mean time, Stanislaus’s decision makers must not further delay. They must do for as many as possible asap.
Resources must be made available to provide toilets; trash receptacles; water for personal hygiene and laundry; “real” healthy food (cooked from scratch); potable water; and lightweight portable living quarters set up on land with trees and foliage for “forest bathing healing,” PLUS land to garden on so as to know they are being productive towards their own well-being.
I know for a fact there is long term available land that fits the above description, for rent or as donation that can be converted. Daily, reduced schedule transportation for workers. And, self sustaining management by those capable. A win win arrangement with very light oversight for most.
That will take care of many, freeing time and resources for more needier groups. This arrangement does not need months and years of committee meetings. Volunteers can assist immensely.
What say you, Nicholas? Please do not waive your opportunity to offering a thoughtful response.
Perhaps Modesto needs a new funding model. What has been explored? I haven’t heard of anything new. Are we limited by the city charter as to what’s acceptable? We can always modify if needed. Do we have staff that can even investigate? We need to be visionary and get stuff done. Leadership needs to step up soon!
Times they are a changing and at an accelerated rate! If we don’t get it together soon it’s going to get real ugly! We need Measure H and we need leadership!
The people must understand the police are not your friends and are not here to help you. People should not be calling the police for anything! The police are an occupying force that oppress the masses of the people for the benefit of the few rich elitist within our society. The police are nothing but front line occupying soldiers that ensure the people do not revolt and flip the system on its head implementing “From each according to his ability, to each according to his needs”…
The people should never trust the police or call the police, the police should be avoided at all cost!
This November the people should vote NO on Measure H Modesto’s tax increase, DO NOT GIVE THE POLICE PAY RAISES!
What do you think would happen with no police enforcement. The civilization is not moral enough to do the right thing. So we must fund the law enforcement and support their mission.
Good day, Jh
I think you have a point there.
Only, difference is that I would end with “and support our mission.”
I know by changing the ending, I may be viewed as getting into the weeds [or into semantics] yet, WE THE PEOPLE want support of our mission and never want to lose sight of our mission.
Many people see the police as perhaps having their own mission, one of non-support of our mission to be free and happy citizens with no flack.
Both ends should amount to the same, but some citizens are not certain it does.
I wanted to draw that point home.
Thank you for your input. You are wise.
This November vote NO on Measure H Modesto’s tax increase! People off the block support defunding the Police! In Modeso California about 80% of the general fund is spent on public safety. Click the link below to see how much money Fire Fighters & Police Officers make in Modesto California. Compare how much money they make to how much you make as a civilian with stagnant wages… then ask why they need more !!?? Police & Fire make enough money, they are living fat off the hog or rather fat off the steak & lobster; while you can barely afford escalating rent & food for your family with inflated prices! Vote NO on the Measure H tax increase!! DO NOT GIVE THE POLICE PAY RAISES!!!
https://transparentcalifornia.com/salaries/2021/modesto/
Before you decide to vote on this Measure, make sure you read the entire voter’s handbook on it.
From what I have read, I cannot tell how many police officers will be hired or exactly how the additional revenue will be spent. Will 81 percent of the incremental revenue go to fund more police officers (see Nick Bavaro’s comment)?
A lot of promises are made in the proponents’ ballot argument in favor of the measure. Exactly what will we get? I predict another sales tax increase will appear on a future ballot.
What bothers me most about the way we discuss these proposals is we do not discuss them beyond a superficial level. If we are going to only focus on Need and not look at how the city spends existing revenue, there will always be unmet needs without improvement of fundamental operation decisions.
We suddenly need to approve this measure because the city was allowed to deteriorate for years with little effort to right the ship of state. Now, we are in crisis? So why no outside help?
Does the CHP and County Sheriff do traffic patrols within Modesto City limits? We are within their jurisdiction, so can they help us more if the State and County aren’t giving us money? Modesto does not get any revenue from writing traffic tickets, so why can’t the State, who gets the revenue, help out more?
Police and fire could reduce administrative costs by merging their administrations into a department of public safety, like the City of Sunnyvale.
The City could solicit private donations like the Gallo Center did in exchange for naming rights.
What will happen if the Measure loses? Are the elected leaders going to sit on their hands, or are they going to start aggressively exploring alternatives?
I am not willing to support any tax that preys on our poorest citizens. Yeah, there is no sales tax on grocery store food. But there is Sales Tax on toilet paper, cleaning products and other household necessities.
BRUCE FROHMAN, YOU KNOW HOW TO GET YOUR POINTS ACROSS SO NO ONE MISTAKES YOUR THINKING.
I THINK ZWAHLEN, AND GREWAL MUST PUT FULL PRESSURE WHERE IT BELONGS TO ACHIEVE FUNDING WHERE IT IS NEEDED, RATHER THAN IMPOSE ON CITIZENS TO VOTE IN FAVOR OF THIS TAX INCREASE: MEASURE H.
GREWAL [NEWSOM SHOULD BE ASKED FOR POINTERS), AND ZWAHLEN] SHOULD KNOW [BETTER THAN MOST CITIZENS] WHICH FUNDING THEY CAN GO AFTER; HOW TO GO AFTER IT; AND GET IT.
THEY HAVE HAD PLENTY ENOUGH TIME TO RESEARCH THIS, AND BRING ON ASSISTANCE TO MAKE THIS HAPPEN.
STANISLAUS CO AND MODESTO CITIZENS ARE NOT ALL ZWHALEN’S AND GREWAL’S CHUMPS, NOR, CHUMP CHANGE.
THEY AND THE COUNCIL AND SUPERVISORS ARE BEING CALLED TO GET BUSY. THEY MUST STOP CROSSING THEIR FINGERS, WISHING WE WILL LET THEM SADDLE US WITH THEIR LAZY OMISSIONS. TIMES THEY ARE A CHANGING, AS, FRANK, SO STATED.
NO ONE VOTED ANY OF THEM IN TO LOLLYGAG. THERE IS FUNDING OUT THERE THEY KNOW WHERE IT IS LOCATED. THEY [NOT US] MUST GO STRAIGHTAWAY TO
APPLY EXERTION!
LEAVE OUR HARD EARNED PENNIES OUT OF THEIR LAZY SCARE TACTICS. WE SEE THEIR
PLANS FOR WHAT THEY ARE. IF THEY WERE SO VERY CONCERNED THEY WOULD HAVE STEPPED UP LONG AGO.
SOME LESSONS ARE COSTLY. WE SHOULD HAVE APPLIED PRESSURE ON THEM LONG AGO. NON-ACTION HAS ITS CONSEQUENCES.
CAN ANY ONE PUT INTO WRITING WHERE EACH PENNY IS EXPECTED TO BE SPENT? WE WOULD ALL BE GUESSING.
THE FIGHT FOR TRANSPARENCY MUST BEGIN. NOW IS CRITICAL
A Sales Tax is the most equitable from of Tax there is, because the necessities of life like Food and medical supplies are Sales Tax free. The poor do not have the luxury of buying non-necessities on a regular basis because they don’t have money for them.
Out of curiosity I Googled the question I asked in my prior post:
Perhaps Modesto needs a new funding model. What has been explored?
Of interest was this short video https://www.youtube.com/watch?v=5pzt68Wvr50
Are we on the path to become a ‘Smart City’?
Check it out at:
https://www2.deloitte.com/global/en/pages/public-sector/articles/smart-cities-funding-and-financing-strategies.html
Modesto needs the money.
And I will vote NO.
City “leadership” is incompetent and cannot to be trusted to spend your money responsibly.
Hire a city manager with experience and an understanding of the necessary investments to make Modesto successful, and send at least two department heads packing as well. City Council is responsible for ensuring department heads are high quality—but just look at these people.
The city has never been in worse shape and throwing money at it won’t fix the biggest problems.
a tax on growing thirsty almond tree’s and problem solved.
Turlock Citizen says
A Sales Tax is the most equitable from of Tax there is, because the necessities of life like Food and medical supplies are Sales Tax free. When Turlock voted for a 3/4 cent sales tax in 2020, I looked at my yearly expenses and found the 3/4 sales tax costs me about $20 more in taxes a year.
I’ll just keep shopping in no income tax Nevada. This includes large purchases such as vehicles and appliances. Yes it’s easy to register cars in other states like South Dakota via the internet. The wack job liberals will not take my money! Keep voting for nusance.
Shop other states for large price items.
I’m sorry I would never think of buying and registering a vehicle in another state to deprive CA of my money.
This site censors comments against the increase in sales tax.
Tim: If we did censor based on the power of opposing arguments, your comments would still be published. They are delightfully vulnerable.
Time to move out of Califairyland. Luckily I reside in multiple states and shop accordingly.
Who will allocate if passed where the money will go? As a county resident I do not get to vote on the sales tax increase not to mention the school bond measure that will also be on the ballot that will raise property taxes. There in lies the problem two taxes on this ballot that will raise prices for individuals somethings not right.
It’s not only the lower income people who are trying to survive times are tough everything is going up. Garbage rates have increased dramatically, gas prices, food and so on.
No on new taxes
Does Modesto NOT have a lobbyist in Sacramento who can lobby for a more equitable share of taxes?