The assessed valuation of all properties in San Diego County grew from $10 billion in 1979 to almost $400 billion in 2008. That represents almost $4 billion in Prop 13 property taxes. Each year 10.5% (approx. $400 million) of those taxes is being "diverted" to Redevelopment. That is why the schools have a huge deficit.

The graph below traces the explosive growth in property taxes.

After deducting various exemptions, e.g. the homeowners exemption, the net taxable valuation in 2008 is $374 billion. The next graph shows the breakdown by land use. Note that Residential is 78% of the total!

Each year the County publishes a misleading document entitled "The Largest Taxpayers". This is the result of lobbying by the 30 largest corporations in the County. Much of these taxes are in fact "tax increment" and diverted to "Redevelopment".

The truth is that the largest taxpayer by far is the typical hard-working, two-job San Diego family who purchased their American dream, a single family home or condominium. They are struggling to make massive mortgage payments while shouldering the lion's share of explosive property taxes. They are now being asked to shoulder an additional of $2.1 billion school debt.

The estimated property tax on a typical $500,000 San Diego house or condominium is $6,250 per year or $520 per month. That is more than most working families pay on their typical two car payments. Prop "S" will increase that burden and further reduce home affordability.

The total valuation of all commercial properties in the county is $51.3 billion, while the total valuation of all residential condominiums in the county is $52.5 billion. In other words the hard-pressed residential condominium owners alone pay more property taxes than all the commercial business owners put together.

San Diego City accounts for 44% or $166 billion of the total valuation of San Diego County. See the pie chart below for a breakdown by city.

It is clear that property tax on the densely populated areas within the City of San Diego is the main cash cow for all governmental agencies in San Diego County, including the San Diego Unified School District. No wonder developers and planners love density.

That $166 billion in assessed valuation translates into $1,666 million in tax revenue (1% as per Prop 13). Of that $1,666 million tax, $1,295 million is collected from residences. The greater the housing density the less taxes businesses have to pay.

Based on the latest data available from the County Tax Assessor, the distribution of the County's 1% tax revenue per agency is approximately as shown in the following pie chart:

Note that almost $400 million per year is going to Redevelopment countywide. Approximately 43% of that ($172 million) is what schools alone are losing to Redevelopment each year.

The County recently settled a law suit with the City of San Diego Redevelopment Agency by diverting (already diverted) taxes back to itself (the Grantville case). No such settlement was made for schools. The schools had not sued Redevelopment.

Servicing this new $2.1 billion school bond will impact particularly heavily on young people who purchased their homes in the last few years as they have the highest assessed valuations. This is a very regressive tax!

That is not how it is supposed to be. Section 33680 of the California Redevelopment Law clearly states:

"(a) The Legislature finds and declares that the effectuation of the primary purposes of the Community Redevelopment Law, including job creation, attracting new private commercial investments, the physical and social improvement of residential neighborhoods, and the provision and maintenance of low- and moderate-income housing, is dependent upon the existence of an adequate and financially solvent school system which is capable of providing for the safety and education of students who live within both redevelopment project areas and housing assisted by redevelopment agencies. The attraction of new businesses to redevelopment project areas depends upon the existence of an adequately trained work force, which can only be accomplished if education at the primary and secondary schools is adequate and general education and job training at community colleges is available."

Three agencies of local government are represented on the map below: Schools (the flags), Planning (the districts) and Redevelopment (the red areas). But they function entirely independently of each other!

The biggest factor families use in deciding where to live, is schools.

How can a city plan its communities without control of this single most important livability factor? The school should be the center of planning! It should be the community's economic engine and meeting place.

As it is right now, there are three separate "pots" of money: (1) City's General Fund, (2) Redevelopment tax increment, (3) School bonds.

Each "pot" of money has its own bureaucracy, jealously guarding its own power. The result is piecemeal planning and substandard schools.

The best way to get these bureaucracies' attention is to say:
"no more money until you get your act together - literally".
The present funding system is not working and needs to be fixed.

Vote No on Proposition S

Please help defeat this dishonest Proposition.
It will not benefit your children.

In fact, a "Yes" vote would transfer the cost of your children's education onto their own shoulders when they grow up. That is not how it is supposed to work.

In fact, a "Yes" vote would be a donation to the business interests who would waste this $2.1 billion as they wasted the last $1.5 billion from Prop MM.

None of the proceeds of these bonds can go to teachers by law. It is $2.1 billion corporate "pork".

The defeat of this corporate welfare measure will require radio and TV advertising. The big business proponents will spend lots of their corporate money.

Our children deserve the best education we can give them. Prop "S" is NOT the way to finance their education.

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Inquiries

Letters

Blog of San Diego Can revenue from predicted assessed property increases bail out San Diego Schools' and San Diego City's deficit spending? (October 21, 2008)

Why is the Girl Scouts actively promoting the School District's $2.1 billion Bond measure? (October 13, 2008)

Proposition S is a Second Mortgage on all our homes. (Sept 4, 2008) Sacramento Bee Redevelopment property tax shift is overdue (Sept 2, 2008)

Voice of San Diego No Money for School Bond Opponents (October 6, 2008)

Taxpayers Association: Thumbs Up on Bond against advice of staff (Aug 15, 2008) Taxpayers Association Criticizes New Bond (Aug 14, 2008)

Blog of San Diego

Can revenue from predicted assessed property increases bail out San Diego Schools' and San Diego City's deficit spending?
(October 21, 2008)

Why is the Girl Scouts actively promoting the School District's $2.1 billion Bond measure?
(October 13, 2008)

Proposition S is a Second Mortgage on all our homes.
(Sept 4, 2008)

Sacramento Bee

Redevelopment property tax shift is overdue
(Sept 2, 2008)

Voice of San Diego

No Money for School
Bond Opponents
(October 6, 2008)

Taxpayers Association: Thumbs Up on Bond
against advice of staff
(Aug 15, 2008)

Taxpayers Association Criticizes New Bond
(Aug 14, 2008)