MCAR Blog & Forum

This week, both proponents and opponents anxiously awaited the results of Measure W, Salinas Valley Memorial Hospital’s $400 million bond effort. Much to the hospital’s dismay, the effort failed. The real news story here however, is not that the measure failed, it is that its’ failure was not unique. That same night, three hours east of Salinas in a small town named Oakdale, Oak Valley Hospital awaited the voters’ decision on their bond effort and received the same results.

District Hospitals all over the state are rushing to meet state seismic requirements by 2013 and in their quest to raise taxes in order to meet a legislative mandate, they are bumping up against what I like to call the Bond Ceiling. Looking across the state it appears as though somewhere in the last two years voters have lost their tolerance for self-taxation and managed to erect a ceiling that nary a public agency has yet to break through. Tough economic times are upon us all, our houses are worth less, our cars and groceries cost more and our jobs are not keeping up with the cost of living. The excesses of the late 90’s and early 2000’s have caught up with the energy industry, the banking industry, Wall Street and now the average American. Unlike its’ big corporate brothers, the average American, with less than $1000 in savings, is unable to pull out of the rut very quickly. Alas, the only thing the average person can control is the measure to which he or she will tax themselves.

So here is my question: is the post Prop 13 California, coupled with an economic downturn, a place where no bond can be passed for the foreseeable future? If so, what are special districts and municipalities to do? While I don’t think there is one right answer to this question, a possible answer might be: nothing. Well, maybe not nothing, but very little…let me explain.

Financial experts will tell you if you don’t have money, don’t spend money. As such, in lean economic times certain projects should be put off until a person has more disposable income. For example, in lean times when the kitchen sink breaks, you pay to fix the sink. When your house was worth 30% more and your sink broke, you may consider taking the opportunity to remodel the kitchen. The average person can appreciate the distinction between a necessary repair and a job that can wait.

It appears that local governments have entered into very lean times, along with the rest of the country. The voters are saying they won’t tolerate big projects and big spending by government because they themselves aren’t spending. Yes, this means deferring some projects that would be really nice to have done, like the building of better roads and new schools. But if government is of the people and for the people, shouldn’t it be like the people? Eventually, the economy will progress and people will begin to shout for better streets and bigger schools, and as such, maybe they will then be willing to pay for it.