DeMaio: Sales Tax Hike a “Bailout” For City Politicians

Sales Tax Hike a “Bailout” For City Politicians on the Backs of Working Families

Without Pension Reform Funds From Tax Increase Will Be Wasted

San Diego – City Councilmember Carl DeMaio today labeled the proposed city sales tax increase a “bailout” for city politicians that have failed to implement long overdue reforms to the pension system and competitive bidding on city services. 

“The majority on the City Council has spent the past several years blocking pension reform and real competition on city services. Instead of implementing reforms, they have cut city services, browned out fire stations, resorted to questionable accounting shifts, and raided reserves. Now they are desperately seeking a bailout from San Diego’s working families in the form of a regressive sales tax hike,” commented DeMaio.

DeMaio’s office released figures showing that skyrocketing pension payments are driving the city’s need for a sales tax hike. City employees have been awarded pension and retiree healthcare benefits far in excess of comparable packages in the private and non-profit sectors in San Diego – and the costs continue to wreak havoc with the City’s finances.

“As the figures show, this tax hike will do nothing to fix the city’s financial problems caused by unsustainable pension benefits – and therefore will not save our city services,” DeMaio noted.  “Without pension reform, it will only be a matter of time before the City Council calls for additional tax increases on our working families.”

DeMaio joined a coalition of taxpayer, civic, and business groups for a press conference opposing the sales tax proposal.  Using the mantra “Reform Before Revenue,” the coalition called on the City leaders to focus on implementing pension reforms and managed competitions before considering any tax increases. 

For more information, visit:www.cleanupcityhall.com.