Council Strikes Down School District's Sales Tax Initiative

No further action will be taken by the  to place  on the November ballot. The decision came Monday night during  dedicated to discussion of whether the city should pursue the sales tax.

A 4-2 vote effectively killed any city involvement in bringing either a quarter-cent or a half-cent general sales tax before voters, something the  as they .

Lines were drawn early on during council discussion between those in favor of pursing the tax and those opposed.

Council members Cat Tucker, Dion Bracco, Bob Dillon and Mayor Al Pinheiro all expressed opposition to the tax, with the latter three vehemently assailing it.

Bracco, perhaps the most emotional over the initiative, said he viewed the district’s pursuit of a general tax, which only requires a simple majority of over 50 percent to pass, as a move to circumvent legal funding avenues.

"What we are being asked to do here is to try to go around the legal process and try to do it in way that gets the results some want," he said. "I believe this is illegal and that we'll spend a lot of money when this gets challenged [in court]."

Bracco's position as  in a fledgling economy colored his decision.

"People are hurting right now," he said. "I make one-third of what I made five years ago. To ask people for more of their hard-earned money is ludicrous."

The threat is there for shoppers to take their business elsewhere, Pinheiro pointed out, if the city's sales tax was to increase.

Councilman Peter Leroe-Munoz, who joined Peter Arellano in the minority, said he agreed that a loss of business is a valid concern, but said that without the sales tax, there might not be a school district worth saving later on.

"Crises don't happen when they're convenient," he said. "I don't want to be Emperor Nero while Rome is burning."

Over a half dozen community members spoke out both in support and against the tax, though the majority expressed disapproval for the initiative.

"There are already plans for tax increases on the November ballot," said Gilroy resident Susanna Rodriguez. "Measures like these are going to stifle what little recovery has occurred in our economy."

She suggested the city and school district try living within their means before asking the citizenry to foot the bill.

Another speaker, who said he worked as a sales consultant for General Motors and Ford, said a sales tax would adversely affect Garlic City retail.

"You would be amazed how many people will go out of their way to save a quarter-cent on a sales tax," he said.

GUSD board member Jaime Rosso also addressed the council, saying the district has gone through all of its mitigation measures to "live within our means."

"We are talking about cutting staff and cutting the school year by 10 days," he said of the district's fiscal situation. "That's our mitigation. That's living within our means."

Pinheiro asked Rosso why school board members are asking the council to move forward with the tax, instead of doing it on their own. 

Rosso responded that the district is simply asking the city to "continue the conversation."

Pinheiro also asked why the district decided not to pursue a property tax, which can placed on the ballot without council involvement, besides the fact that it requires a two-thirds vote to pass. 

"A property tax is only charged to property owners," Rosso said. "A sales tax would be spread out throughout the population."

Leroe-Munoz, making a final plea in favor of the pursuing the tax, asked the council to consider the alternative to saving consumers a few dollars.

"A sales tax may bring about a fear of loss of revenue, but there is also the very real loss of property ownership, loss of the best students and loss of a sense of community," he said. "We may keep our competitive deals, but at what cost?"

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