04 Mar County Supervisors Put Sales Tax on June Ballot

(Screenshot captured by Samantha Kennedy / The CC Pulse)

By Samantha Kennedy

Contra Costa voters will decide this June whether or not to increase sales taxes to mitigate federal cuts to healthcare. The tax could generate around $150 million annually, according to officials.

County supervisors voted 4-1, with Candace Andersen voting against, to place a five-year 0.625% sales tax on the June 2 ballot.

If the measure passes, revenue from the tax would go into the budget’s general fund, which would allow it to be used for things outside of healthcare. A simple majority of voters, 50% plus one, would need to approve the measure for it to pass.

“We have unfunded mandates from the federal government and the state government that we have no choice but to make sure that we take care of. That’s what this looks like right now,” said Supervisor Shanelle Scales-Preston.

H.R. 1, also known as the “One Big Beautiful Bill,” cuts healthcare and social safety programs like CalFresh, the state’s version of food stamps, over 10 years. Contra Costa projects a more than $1 billion deficit by 2031 because of the cuts. Reductions to healthcare will total around $500 million through 2031, according to Contra Costa Health’s interim chief financial officer Brian Buchanan.

But those healthcare reductions were not the amount that Andersen, who supported the tax at previous meetings, said the county shared in some of its information. She said it was irresponsible to move forward with the tax at this time.

“The fact that we had to change the resolution today, that we have posted incorrect information on the website, is very, very disconcerting,” said Andersen. “To me, it’s just basic, good government [to do so].”

In the county’s initial resolution placing the tax on the ballot, the county stated that federal funding cuts and rising costs were projected to exceed over $300 million in annual revenue losses by 2029. Andersen said some information said $307 million in revenue loss.

Thomas L. Geiger, county counsel, told board members Tuesday that the amount needed to be changed to “cumulative losses of an estimated $239 million by 2029.”

Dr. Grant Colfax, director of Contra Costa Health, acknowledged the error.

“But I will just be very clear here, lives are at risk, and our entire healthcare system is at risk,” said Colfax.

Michael Arata, a member of the Contra Costa Taxpayers Association, told members that the measure needed to be pushed back.

“Now, you’re changing the game. You’re going to 2031 and have done it so late that we responders are also on the fly. This needs to be considered much more thoroughly,” said Arata.

Contra Costa is not the first to consider a sales tax to cover costs associated with federal funding cuts and the state’s deficit. In Santa Clara County last year, voters approved a similar tax that would help fund programs affected by the cuts.