Pensions and Investment: Public pension debt took an unusual bite out of taxes in Sonoma County last year, playing a role in the rejection of a ¼-cent sales tax increase by 63 percent of voters.
A broad business-labor-environmental coalition said the tax increase was needed to repair deteriorating streets and roads, reduce traffic congestion, improve transit services, create safer pedestrian and bicycle routes, and allow faster emergency response.
But the opposition ballot argument said that instead of being a specific tax to fund roads, requiring approval of two-thirds of voters, Measure A was a “bait and switch” general tax, only requiring majority approval, that could be used for any lawful purpose.
“It is also well known the County has a generous employee pension plan that has a significant funding deficit,” said the argument. “Probably it is fair to say the drain the pensions have on the General Fund have a role in the County’s motivation to enact this new tax.”
There, you see. Put the vote to the people in the right sized political unit and bingo, they figure out the thrust, the side effects, and the hidden agendas. Political research scientests discovered this effect in the 60s. What does this say about public choice theory?
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