Measure A would improve Oakland gross sales tax if handed in Tuesday’s particular election

OAKLAND, Calif. (KGO) — A lot of the eye in Oakland’s particular election Tuesday has been on the mayor’s race, however there are two different points on the poll: the race for District 2 metropolis council member and Measure A.

“Gross sales tax is a final resort however that is the place we’re proper now,” Oakland Interim Mayor Kevin Jenkins mentioned.

Mayor Jenkins was speaking about Measure A, which might improve Oakland’s gross sales tax from 10.25% to 10.75%. It may elevate upwards of $30 million yearly for a metropolis dealing with a $140 million structural deficit.

“This isn’t an Oakland concern, it is a systemic concern,” Jenkins mentioned. “That is what is going on to cities after the pandemic. Receipts aren’t coming in how they had been at one level. So, this is not an Oakland spending concern.”

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By the town’s personal accounting, it tasks a 5-year deficit by 2028. Mayor Jenkins says if Measure A passes, it takes impact instantly and the cash collected will likely be booked on this present funds, which he’s getting ready to current on Could 1.

Those that help Measure A add that the rise will convey Oakland’s gross sales extra consistent with different Bay Space cities.

Measure A cash can be unrestricted, that means it may be spent on the metropolis’s discretion, which is without doubt one of the considerations of those that oppose the measure.

“Frankly talking, I perceive what plenty of voters say, that they’re against it as a result of they do not belief the town to spend their tax {dollars} properly,” says Oakland Metropolis Council Member Janani Ramachandran, who’s chair of the Finance Committee.

Ramachandran helps Measure A, however she has been essential of previous funds selections reminiscent of tying the sale of the Oakland Coliseum to final 12 months’s funds cycle. She says this metropolis council is already dedicated to creating massive spending cuts within the new biennial funds course of – throughout all departments.

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“You will note the committee attempting to crack down on what a few of these metropolis departments are asking the town to dole out cash for. And we’re getting increasingly more essential, and it is a new period in Oakland politics,” Ramachandra mentioned.

Len Raphael, who’s a Licensed Public Accountant, ran for metropolis council in November. He says he is not in opposition to elevating taxes. He’s extra involved about how the cash will likely be spent.

“Passing Measure A can be the equal of giving an alcoholic a bottle of excellent booze,” Raphael mentioned.

He argues for the previous few funds cycles, metropolis council ignored the warnings from metropolis employees of the rising deficit, making choice primarily based on political capital as a substitute of sound economics. He provides that Measure A can be a regressive tax, that means it’s going to damage decrease earnings voters probably the most.

“They spend a a lot greater proportion of their earnings on gross sales taxable objects,” suggests Raphael.

The polls are at the moment open by Tuesday.