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What should be cut to fund road repairs?
Thursday, August 07, 2008
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Yesterday the proposed election for a transportation tax died a quiet death in the Board of Supervisors chambers. I was disappointed because I would like to see the roads fixed, and I do not believe they will be fixed without one in any reasonable time frame, but I agree it was the right decision. Taxpayers are scared right now for a lot of reasons, and I think the final blow was our Governor proposing the 1 percent state sales tax.

On my part, I have done a lot of research into the question of the roads and road tax, and want to share some of what I have found. This is going to be a bit longer than usual but I hope you can hang with me, because this is an important issue.
Our roads are in dire straights right now, and without a major cash injection from somewhere soon many of them are going to turn into gravel. Some roads already have, as you probably know.

Traditionally, road improvements have been paid for by taxes related to transportation, mainly gas taxes and vehicle fees. Roads are traditionally viewed as self funding, as little or no general funds from property taxes or other taxes were put into roads. This is true not just of Napa County and the city of Napa, but in counties and cities throughout the state.
What happened is the state gradually began to take more of that money back, leaving cities and counties to adjust the best they can. Proposition 42 gas tax funds from the state have been taken by the state due to budget problems; the half-cent we get back of our own local sales tax is by law to be used only for transit not roads; the per-gallon tax stays at 18.4 cents regardless of how much gas prices go up; and gasoline use is going down, thereby reducing the amount from that. Finally, the city is getting more sales taxes from rising gas prices, but so far other taxes are going down so much that there is no new money there in total.

Meanwhile, the cost of fixing the roads has skyrocketed, and like gasoline prices are never really going to go back down. On top of that, asphalt roads have a 15-20 year life span, and when you don’t maintain them — which is what we are doing, not maintaining them — they cost four times as much to fix in the last quarter of that lifespan.
I hope you can see where all this is heading. The key point here is they have been trying to handle increasingly expensive roads off of an increasingly diminishing budget and it isn’t working.

Prop 13 had a lot of unintended consequences, one being that it created a steady constant flow of rising income for local governments. Another lesser known fact is it also set in stone who in the local government got a percentage of the property taxes, and it also set in stone what the percentage was. For instance, schools in Napa get about 65 percent of all property taxes, by law. So if there is a big increase in property tax collections, 65 percent of it automatically goes to the schools, whether County Supervisors think that is the best use of the money at that time or not. They cannot put any of that money into roads, even if the schools are getting new desks every two years.

When Prop 13 passed, the Congress Valley Water District got 0.0197 percent, the Fairfield Suisun School District gets 0.0158 percent, and the County General Fund only gets 17 percent of total collections. By law. So that is the amount that the county actually has to work with regarding property taxes. Last year it was about $42 million out of a $255 million budget.

That means all the extra non-covered needs of the county have to come out of that amount, for the most part. There were two areas of need that were not receiving property tax revenue at that time, roads and flood control. That is part of the reason that we need to support those with other taxes.

Now, I am not criticizing Prop 13, to me it is holy writ that has saved the taxpayers in this state. But what I am saying is the fact that roads were not on the list when it passed means road money has to come from other sources. If we are going to put more general fund money into roads, it either has to come from other parts of the budget, human services, law enforcement, etc. or it has to come from other taxes, which for the county are slim to none. Therein lies our dilemma.

My belief is citizens are going to have to get more involved in this if they expect things to change. You cannot sit back and expect everything to just run itself anymore. When budget issues come up, the vast majority of people there to speak are demanding more services, more spending, not less.

Now, $42 million is still a lot of money, and in my opinion both the county and city could make cuts to provide more of that for roads. I have frequently mentioned I believe the employees are overpaid, particularly some of them. Whenever I do that, I get bombarded with criticism, as any regular reader of my blog knows. The people who agree we are overtaxed need to speak up more, and need to be more specific about what they think should be cut.

We spend a lot of money on human services of one sort or another. Are you prepared to go to bat to cut that spending to shift some of it to roads? Then you need to speak up and be specific.

I have reached the conclusion that given these and many other factors, such as the fact that employee contracts are not going to be changed any time soon and will first require a large public outcry which has yet to happen, we cannot afford to let the roads go any longer.

So it is disappointing to see the tax vote pulled. What you are going to see is both the city and county try to put some more money into roads, which they will, but it won’t be nearly enough and you will therefore also see a continued degradation of our roads, along with no needed traffic improvements in south County to deal with the traffic down there.

Hopefully some constructive dialogue will come out of this and we will find a way next year to do better.
29 comment(s)

musikluvr wrote on Aug 7, 2008 11:20 AM:

" What should be cut? I think it is time to publish the oath of office that our elected officials take. I would like to know if they are required to protect taxpayer dollars. I think it is time to check on who their financial supporters are and I think it is time to require elected officials to protect taxpayer dollars.
Specifically I would like to know if any of them have taken donations from anyone who stands to gain from tax money - like public employee unions, contractors or anyone else. I want elected officials to have personal financial responsibility for their decisions. If they attempt to bargain with unions after they received donations, they should be idicted. If they grant contracts to contractors who have financially supported them they should be imprisoned and fined. If they cannot stand up to these requirements they should resign. Once we get the elected officials attuned to protecting taxpayer dollars I don't really think we will have to worry about road repairs. After all, they have done it for 150 years so what is the problem now? "

napablogger wrote on Aug 7, 2008 12:42 PM:

" musikluvr, all those things you mentioned, elected officials getting money from unions, etc, do go on. They are not illegal. In fact, that is how the system works.

I do think we have to cut human services, it is so swollen in this state.

One program that is a mistake is the Rob Reiner initiative that costs the state $700 million a year, Napa gets $1.4 million. That extra money every year would do a lot for local roads.

Voters have to recognized that there are limited resources, and the need for help for people is unlimited. We could spend the entire state budget on programs for kids, and there would still be massive need. Where do you draw the line? We have to. "

Bill wrote on Aug 7, 2008 1:20 PM:

" Stop funding the trolley and the tourist center. "

misfit wrote on Aug 7, 2008 4:47 PM:

" How about charging tourists to drive the Silverado Trail or Hwy 29 just like the fee charged for the 17mile drive in Carmel.
We are the ones who have to put up with the traffic they cause...it's treacherous out there. Their cars are either driving too slowly, while looking for a particular winery or, stopping suddenly to turn into the wineries driveway once they spot it or they are a bit tipsy. "

MarshaMarsha wrote on Aug 7, 2008 7:03 PM:

" Nothing should be cut. Instead, tell any developer who plans to build Industrial, commercial, or residential projects that they must agree to contribute to a "road re-development" fund before their plans will be approved. Base the amount on a percentage of the projected profit that the developer will make on the project.

This will create funds to repair roads that must handle the extra traffic from new development, as well as teach developers that they cannot simply build and run. "

napablogger wrote on Aug 7, 2008 10:56 PM:

" marsha, if we tell developers that they won't make any profit on the project, or it will cost a million dollars for an average condo, which no one will buy.

We need $15 million a year for the county alone, about the same or more for the city of Napa. We are almost built out and the building that is going on now is mostly small infill projects.

We need big money, all these ideas are too small of amounts. EVen if we could put a toll booth on Silverado, how much could we charge--$10?. That would net us what, traffic jams on 29 plus a million a year? Too impractical. "

MarshaMarsha wrote on Aug 8, 2008 8:08 AM:

" napablogger, developers will still make a profit, they just can't be as greedy. In reality, developers have no real interest in doing the community a favor by providing nice new housing: they are out to make as much money as they can before running off to the next town to "shear the sheep". If a developer is local or has a true interest in bettering our community then they will have no problem contributing a small percent of their profit to a road repair fund.

The developer can try to pass the extra cost off to the buyer, but the prices will still have to remain competitive or the project sales will lag. New hotels and wineries would make up the loss easily over time. Their percentage could be based on the real estae value of the property once completed. Developers would have to understand that they make less profit in Napa to help our roads or they build elsewhere.

This is not an idea that will completely solve the $15 million-a-year issue, but it would be a start and contribute significantly. We have to start somewhere, or start buying horses. You asked for ideas, I'm trying to offer something that cuts profits, not budgets. "

Cadence wrote on Aug 8, 2008 9:25 AM:

" The roads are ok enough as is. They add to the quaint and rural image and may in fact be a selling point: imagine if tourists could be issued Conestoga wagons (even individual ponies) to tour the valley. What novelty! How quaint! How rural! Status could be conferred by different degrees of posh - AC for the Ritz wagons, a lowly donkey hauling the Chateau folks.
I'm afraid the reality is pols hope that no road work will eventually make the voters yield and pay a special road tax.
What to cut? I'd start with practically every "oureach" program, outreach for college, outreach for free health coverage, outreach ad nauseum. If those interested in the gazillions of programs can't muster enough get up and go to go out and locate the program, then I don't think they're really too interested.
And unbelievably, I agree with you, NB, about Rob Reiner's program. Yesterday I saw a friend who works in the First Five office in Sac. She's in the process of finding another job; she tells me she can no longer stomach the waste she sees five days a week, nor the voluminous paperwork - paperwork tripled because it must occur in at least three languages. "

napablogger wrote on Aug 8, 2008 11:07 AM:

" marsha, we already charge developers up the wazoo, the things we made the Ritz do just for the privelige of locating here was long, and to me an embarassment. Developers have to make a profit, or they won't build, and we are already on the borderline of that as it is. The reason the Kimpton bailed was money, having to pay for a campaign just to build a hotel was too much.

I don't get all this hatred of developers. Do you hate the developer that built your house? They are just building things that people want. The ones that make a lot of money take huge risks.

There has to be a big reward for big risks, otherwise no one would do it and nothing would get done. Why bother risking your whole families life on a big project unless the reward is great if you pull it off?

You don't seem to understand how we get an economy and wealth. All that comes back to all the people at the bottom who get jobs and their income from the bigger risk takers who build things. We need to support them, not trash them all the time. "

MarshaMarsha wrote on Aug 8, 2008 12:20 PM:

" Oh I understand perfectly how we get our economy and wealth. I also understand that keeping up with the state's mandated development without repairing our roads will result in huge traffic increases that will ultimately destroy our road infrastructure.

I have no hatred for developers, and I'm with you on the "punishment" they have to go through to build here. I DO hate excessive traffic and driving on roads that destroy my vehicle. Development is the key reason that our roads will take more abuse. More development=more cars=more traffic=more damage to our roads. If you're looking for a money solution then first look at the people behind the key reason for the problem.

Some of Napa's roads were never designed for the amount of traffic they have to handle these days. Why is there so much more traffic? Because Napa is developing into a larger city. Growth and development are necessary, but completely pointless if the traffic infrastructure is in ruins. Doesn't it make sense to attack the cause of the problem instead of the people who suffer from it? "

napablogger wrote on Aug 8, 2008 11:41 PM:

" Marsha, I agree with you, that is why I supported the tax. My challenge is to those who don't--what is their solution? We are not going to squeeze any more out of developers, or at least enough to fix the roads. What drives development is jobs. More business means more workers means more houses means more more more.

That is why I alone (apparently) was concerned about the agreement with American Canyon. They now have 800 acres of industrially zoned space that they want to develop into jobs jobs jobs. Guess what is going to happen after that? Napa Pipe is a drop in the bucket next to what is about to happen down there and no one seems to be paying attention. "

MarshaMarsha wrote on Aug 9, 2008 9:44 AM:

" I was completely supportive of the tax as well. Of course, I can vote for it, but have to keep my fingers crossed that we'll see improvements and not survey after survey after survey before they determine that there's only enough money to re-pave the city's employee parking lots. The only reason I supported it was because I want to see something, ANYTHING, happen soon about the roads. I would've supported a bake sale.

I don't believe that there is any single solution that will provide enough revenue to repair the roads. The repairs are just too far gone. For the road repair situation to be successful it's going to have to be the top priority on many lists.

And American Canyon is suffering from "little brother syndrome": they want everything that big bro Napa has. AC will no doubt become the industial hub of Napa County, with three main connectors to Hwy 80. In ten years all that open space on the west side of 29 between AC and Napa will look like the Fremont/San Jose corridor. If our roads aren't prepared by then we're in for some serious headaches. "

napablogger wrote on Aug 9, 2008 2:54 PM:

" marsha, I agree. And all the hills east of AC that have vineyards on them now will be covered with housing.

This tax would have gone a long way to fixing the roads though, all the maintenance would have been brought up to snuff over time. "

Todd Adams wrote on Aug 11, 2008 7:01 AM:

" That's a pretty good summary of the situation. Thanks for the info NB.

Cutting spending sounds like a good idea, but I don't have any good suggestions at the County level. There may be some room to renegotiate employee salaries and benfits, but not much given how difficult it can be to fill some of the County positions. In some areas of the County turnover and recruitment are serious problems.

On the side of taxes, I don't believe a general sales tax is the answer. Road maintenance and improvements should be paid by gasoline taxes. This seems the most fair since those who use the roads the most should pay the most. In general, externalizing costs is not a good idea for market economies. "

kevin wrote on Aug 11, 2008 8:54 AM:

" Since the majority of road damage is caused by OVERLOADED TRUCKS, I would definitely force the vineyard and wineries to contribute their "fair share".

Yes I know the trucking companies pay huge road fees already, but if the CHP and the County does not MONITOR weights (and when is the last time anyone saw a load of grapes getting pulled over and checked for being over weight?) then there is an INCENTIVEfor them to carry loads that exceed the legal limit.

Either start INSPECTING trucks or impose a PARCEL TAX on wineries and vineyards to recoup the maintenance costs.... "

Bill wrote on Aug 11, 2008 2:29 PM:

" Dogone it Kevin. I hate it when you say something that makes sense. "

mikeb wrote on Aug 11, 2008 4:00 PM:

" there is not one single anwer but a multitude of areas the can be cut completely or reorganizaed to save tax dollars. The Grand Jury, again after spending a year studying various issues around the County, recently put out it's anual report wich included suggestions to eliminate inefficiencies and waste. What was the response? Same as every year, our elected "leaders" disregarded it completely and went back to business as usual. If you want to know what should/could be cut back, reorganized, or eliminated completely start by reviewing the past several years' Grand Jury reports. "

winemd wrote on Aug 12, 2008 10:47 AM:

" As far as the trucks carrying grapes, is it possible to get copies of the weighmasters' certificates at the wineries? They are weighed full and empty at many places, so the county would not even have to set up a checkpoint. They would have a lot of certificates to go through. I don't think that would work for trucks carrying bottles or barrels of wine, or other things wineries use, just grapes. "

napablogger wrote on Aug 12, 2008 11:11 AM:

" Lots of good suggestions here, Todd I am not aware that the county has any trouble filling positions at all. There may be isolated positions like the head of the jails that they had trouble with, but I don't think the problem there is the salary.

The trucking industry already pays huge taxes, and we could charge more for gas taxes but those are both state and federal matters that it would be nearly impossible to legislate locally.

There is no doubt in my mind that government worker salaries have sky rocketed over the last eight years, and pensions and benefits are all out of proportion to private industry now. The average salary for non safety in the City of Napa is in the 80 thousands. Mid management is all over 100K. Private workers this year got a net .9% cut, city of Napa mid management just got 4-5% increases on base, not to mention step increases for those who got them.

But the problem is, look at the letter today from the head of the City union. He claims that the Grand Jury and people like myself pointing this out means we are demonizing city employees. Then you have people like Ruff Limblog and others attacking us for even bringing up the issues as idealogues.

With that kind of rhetoric we are goiing to get nowhere soon. "

napablogger wrote on Aug 12, 2008 11:18 AM:

" Also, I don't know how fair it is to make only the wine industry pay for grape hauling. It only takes place for a few months in the fall, and they don't travel over Napa City streets as far as I know. They travel on 29 and Silverado Trail, on 12 in Carneros, and two out of three of those roads are state highways.

They go off those onto wineries in the county for shorter distances, but it seems like this suggestion is party due to animus to the wine industry.

Truth in advertising, I am a grape grower myself, but I just don't get all the hostility to an industry that is the goose that laid the golden egg in Napa.

Everyone is directly or indirectly feeding off of it now. I think they should pay their fair share of taxes but they do, and moreso. They pay huge property taxes now.

It is an industry resistand to globalization, from the fact that location of grape growing is the key marketing issue in wine, so the valley can't be outsourced to India. In the coming years you are going to see that become even more of a huge factor than it is now.

The rest of the world is growing rapidly economically and in capability to produce what we produce at lower cost, and here we have something highly profitable that cannot be taken to another less costly country. Most of the rest of the US is vulnerable to that. "

napablogger wrote on Aug 12, 2008 11:22 AM:

" mikeb, the Grand Jury reports, although I thought they did a good job this year, almost all involved more cost to the county and city. That is part of the reason many of the recommendations got turned down. When I was reading them it occured to me that they did not consider cost at all, and that is one criticism I would make of them. I don't think they felt that was their mandate, in fairness to them.

Previous years I don't recall well now. Did some of them specifically address cost cutting? I better look them up if I can find them. "

Bill wrote on Aug 12, 2008 12:29 PM:

" N.B. If you explain yourself long enough you usually trip over your own argument.

Two points.

1. You make Ruff appear to some kind of powerhouse and he doesn't even post here, Has not been around for awhile and when he does post it's not much more than wind.

2. I assume you mean resistant to globalization? Merely because the grapes and appellations can't be moved to India? A major portion of the Napa wine industry is owned by corporations that are multinational which is the basis for globaliaztion. Indeed they may not be from India but are still not local. You don't necessarily have to out source labor which is essentially done in the vineyard at any rate. Ownership, local control and profits can also be outsourced along with needs and concerns. The Napa Valley is not immune. "

Bill wrote on Aug 12, 2008 2:38 PM:

" Bill another point or two.

The product produced must be hauled out of Napa and delivered to market which increases the amount of Semi hauling on the roads. Jamesion Canyon Silverado Trail, Hwy 29 etc. Which as you suggest are not connecting surface streets but State responsibility.

Still the amount of ancillary traffic created by vineyard service and workers going to and fro on surface streets is generated by the wine industry and thus directly linked to responsibility of the wine industry as well as the tourism that it generates. In that sense shelling out more to improve not only their own interests but improving the the quality of life of those who in your theory live off the golden egg does not appear out of the ordinary.

Animus? Maybe blogging is now being taken a little too seriously. When industry gets a little too puffed up over it's position it sets itself up for much of the ridicule it gets.

Wait till this new marketing scheme gets rolling for some really fun perhaps LEGENDARY animus. "

cellsitegod wrote on Aug 17, 2008 6:24 AM:

" If it's the county's responsibilty. We need something to tax tourism. Be it some sort of tourist tax on lodging. Or hit the wineries. At an average of $50 a bottle of wine, they can certainly handle the extra burden of a tax. If it's the state responsibility. Then everyone needs to take a look at the state budget (I'm sure you can get it online)
Then see what we're rediculously spending money on and get those programs cut to divert the funds. "

Ruff Limblog wrote on Aug 17, 2008 7:37 PM:

" I didn't even comment on this post, but saw my name here in passing. Thanks for the introduction...

To paraphrase Ronald Reagan, "There you go again, NB, attempting to act like you know something about economics, taxes and government."

You are all concerned about how city and county employees have it just TOO GOOD, just like Dan Ross is so very concerned that vineyard workers have it TOO GOOD.

And you mention that local politicians get donations from unions, but fail to mention the big money corrupting local and national races with their stealthy last minute donations designed to evade political openess rules. The vast majority of that corrupting cash is NOT from unions or locals.

So you are pushing an agenda and pretending to be 'one of the regular guys' when you are not.

Please do continue to tell us all about how lowering the pay and benefits of a few working stiffs and giving away the store to millionaires and billionaires will make Napa, the County, California and the USA a better place for working people to live.

The word idealogue fits, but I don't recall bringing it to the table.

Cheers! ~Ruff "

misfit wrote on Aug 18, 2008 9:46 PM:

" Why is there this immediate acceptance of taxing the wineries more and yet, these same individuals practically blow a cork if one even mentions a windfall profits tax for oil companies??? "

Ruff Limblog wrote on Aug 21, 2008 8:11 AM:

" misfit - Good question?

I have another one for the "conservatives" who love those executives who make millions while laying off thousands...

Why is it that "foreign" companies can open new plants to produce cars, refridgerators, windturbines, and... well you name it right here in the USA while "American" management can only seem to dismantle what their betters built up in earlier generations?

Why is it that we continually hear about the superiority of what Wall Street calls "capitalism" while foreign companies "clean our clocks" continually and can actually make a go of it right here in the USA with this "horrible" business environment?

~Ruff "

freeport56 wrote on Aug 21, 2008 6:15 PM:

" Salaries and benefits! "

musikluvr wrote on Aug 22, 2008 12:52 PM:

" To Ruff: To answer just one of your many questions: Foreign companies can open new plants in "Right to work" states where the workers have both the right to unionize and not to join the unions but can work side by side. This means there is a free market for labor not a closed market. In other states where unions have a monopoly on labor, they have priced the labor above the point that it is marketable and business has collapsed. No foreign companies open factories in Michigan, Ohio or Pennsylvania.
Unions have only labor to offer and no capital nor entrepreneurial ability and therefore cannot produce good and services. That is why they are proliferating in government where they dominate unfairly because elected officials are bought by them and the
government officials have no ability nor interest in bargaining for the benefit of ttaxpayers. "

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