Making Tough Choices

Councilman Wes Pratt gave a prescription for leadership last week that the rest of the San Diego City Council would be wise to adopt as it addresses the city’s deepening fiscal crisis: “I’m not here to get reelected. I’m not here to run for higher office. I’m here to deal with the real financial crisis we have before us.” Without that philosophical foundation, it’s difficult for elected officials to lead. Yet, the city’s elected leaders--the mayor and the council--seem to want the voters to make the major decisions. That happened in 1988 with growth management, and it’s happening again now as the council tries to find $60 million to balance next year’s budget.

This approach does not bode well for coming to grips with the city’s $100-million to $200-million-a-year long-term needs such as increasing police service, building a new central library and repairing a deteriorating infrastructure.

New taxes and fees are needed, in the short term and the long term. San Diego city government has been trimmed down in the 12 years since property taxes were cut under Proposition 13. It has fewer employees than 48 of the largest cities and lower property tax revenues than 35 of the largest cities, according to a report of the Citizens Finance Committee.

But, before taxes and fees are raised, the taxpayers deserve a well-thought, long-term plan with priorities and a clear rationale for the expenditures.

Then the council should implement what it can of the plan, passing the taxes and fees it has the power to impose and putting on the ballot those items that must be decided by the voters.

Admittedly, the long-term planning begun last year when the council appointed the Citizens Finance Committee was complicated by next year’s budget shortfall. Some short-term solutions are needed to avoid reducing services further than they were last year. The council must decide by Tuesday what it will put on the June ballot. It has already decided to ask the voters to waive the unrealistically low Gann spending limit. This will not cost taxpayers anything; but, without the waiver, city budgets would have to be trimmed as much as $700 million over four years. Passage of this waiver is critical to the economic health of the city. It could be threatened if the ballot is loaded with tax increases.

The council should try to make up next year’s shortfall with revenue measures it can pass, such as increases in the business license fee, which is lower here than in many major cities, and a utility tax, which many other cities have. Shifting some of the hotel tax from promotional programs would help, and some cuts might need to be made.

The council so botched the property tax increase that it passed and then rescinded, that it is probably not a realistic option for this year. But it illustrates the need to lay groundwork for tax increases.

New programs such as increases in the police force and the housing trust fund should be deferred and included in the long-term financing plan.

These are very difficult and politically risky decisions facing the council. But, as Pratt summed up the council’s job: “We were elected to make tough decisions.”