Coalition of Sensible Taxpayers Marin Countys Taxpayers Voice

Coalition of Sensible Taxpayers Marin County’s Taxpayers’ Voice Cost. Marin. org

WHY CO$T?

WHAT IS CO$T? Nonpartisan Advocate for SENSIBLE Solutions Affordable Fiscally responsible Fair Transparent

WHO IS CO$T? Transpartisan Coalition • Leaders with Financial, Public Service, Legal, and Technical Expertise • Supporters – 600 Strong and Growing

CO$T’s Public Service Activities REACH FAR Research, analyze Educate Advocate Create better ideas Host public meetings Facilitate-partner Advise local officials Represent taxpayers on advisory committees

CO$T’s Sensible Tax & Fee Criteria Necessary: To improve/protect vital services; not duplicative Affordable: Not escalating faster than incomes Inclusive: Democratic vote Equitable: Protect those least able to pay Shenanigan-free: Truthful, transparent, regular election Sunset: Appropriate lifetime

CO$T Advocates for Sensible Spending and Transparent Process It’s Our Money. Spend it wisely. - Reprioritize urgent needs – e. g. , wildfire prevention - Deprioritize what fails the sunlight & urgency tests

CO$T’s Key Activities to Date TAM sales tax cap hike – tabled MMWD rate hike - reduced Larkspur essential services tax - passed w/ our support SB-1 Gas tax – opposed (backing repeal initiative) San Geronimo Golf Course purchase – oppose Novato Measure E flood parcel tax And more…

Coming your Way in 2018 – Q&A Regional & Statewide Taxes and Fees OPPOSE Regional Measure 3 – $3 hike Bridge tolls (June 2018) SUPPORT Gas/registration tax repeal – SUPPORT (Nov) TBD SB 827, SB 828 - Housing bills that’s a stealth tax Split roll – Changes Prop 13 (Nov)

Coming your Way in 2018 – Q&A Marin Tax Measures and Fees OPPOSE Dixie School District May special election parcel tax measure CO$T Position TBD: Marin Sanitary Services 8% rate hike (subject to 4/24 Supervisors’ OK) Corte Madera sales tax hike – June Transportation Authority of Marin sales tax renewal - Nov Tamalpais Union High School District parcel tax – Nov

PENSION CROWD OUT

The Future is Now: Pension Tsunami Reaching Shore

Marin Taxpayers’ Dilemma - Rising Public Sector Benefit Costs: Pensions AND Health Care - Vital services starved for funding: Schools, safety, transportation - Sophie’s Choice: Cut Services or Raise Taxes/Fees?

Pension Problem? What Pension Problem?

“Small” Parcel Taxes Add Up to Big Dollars

Myth Buster Not everyone in Marin can afford to pay more! 400 $ thousands/Year 350 300 250 200 150 100 50 0 1 st 2 nd 3 rd 4 th 5 th County Mean Household Income by Quintiles

California Schools Face Increasing Financial Pressure - State mandated costs growing rapidly: pensions, special ed - Revenue growth moderating with housing cycle - Numerous districts face financial squeeze

CONSIDER COST CUTS THAT DON’T HURT STUDENTS 11 Largest Marin districts for which recent data available, plus Marin County Office of Education: Number of Superintendents: 12 Total superintendent compensation with benefits: $3. 260 million Number of schools: 49 Median # of schools per district: 6 (3 districts have only 1 -2 schools) Number of students: 27, 034 ALL THESE DISTRICTS HAVE ADDITIONAL STAFF AND OPERATING EXPENSES For Comparison: Los Angeles Unified School District Number of Superintendents: 1 Total superintendent compensation with benefits: $398, 000 Number of schools: 1, 147 Number of students: 734, 501

Benefits Consuming More of Schools’ Revenue Pie

Unfunded Mandate: Sharp Hikes in Employer Contribution Rate to Cal. STRS, CALPERS CA Schools' Employers' Mandated Pension Contribution, % of Salaries 30. 00 25. 00 20. 00 15. 00 10. 00 5. 00 0. 00 2014 2015 2016 2017 2018 2019 Cal. STRS 2020 Cal. PERS 2021 2022 2023 2024 2025

Marin School Financing Dilemma: Revenues Not Tied to Enrollment - Most Marin schools rely on local funding sources Basic property taxes Parcel taxes Fund raising foundations (esp’ly in wealthier areas) - Local revenue growth isn’t tied to enrollment - Enrollment drivers Demographics Young SF families buy Marin houses (if they can) New apartment complexes, which don’t pay fair share Students cross district lines

The Current Fix: Parcel Taxes – Not Fair. Not Sustainable. - Burden falls on single family homeowners - Slams modest-income condo owners - New apartments add students but minimal parcel tax - Commercial properties don’t contribute meaningfully - Many (most? ) Marin voters don’t directly parcel tax Senior exempt – 1/5 of population; ¼ of voters Renters – 37% of population - don’t see direct linkage to their costs - Want it all vs. can’t afford it all: Divisive parcel tax elections

Creative Alternative – Building Square Footage Parcel Tax - Enacted in 2016 in 3 East Bay Unified School Districts Passed by overwhelming margins - Advantages Spreads tax burden more uniformly across all taxable properties Lessens burden on moderate income homeowners May provide extra money for schools - Problem – Risk averse consultants highlight litigation concern CO$T encourages school districts to explore fair alternatives!

Integrity Matters: GAMES CONSULTANTS & DISTRICTS PLAY (with our money) • All-mail special elections – select the most sympathetic voters • Selective notification/outreach • Voter stalking • Pension denial (pensions poll poorly!) • “These funds will only be used for…. Not a penny for pensions, admin. . ” • Hide the ball • “Renews funding for education”… • Gun to Head - Imminent service cuts, fake deadline, housing crash, floods • “Inflation” increases – these are FIXED escalators >> CPI • Longest possible term • And more!

Perspectives on Tam Union’s Proposed Parcel Tax - Insolvency Notice: operating deficit depleting reserves - Tabled bond measure to focus on deficit - Cost reduction is key part of plan - Strong community outreach and decent disclosure - Parcel tax on Nov 2018 general election ballot - Issue will be apparent need vs. affordability

Taxpayer-Voters: Get Involved. Join Our Coalition! - Sign up for Alerts. Get Informed - Volunteer - Donate Cost. Marin. org

COALITION OF SENSIBLE TAXPAYERS Marin County’s Taxpayers’ Voice Cost. Marin. org