5 years after raising sales tax with Measure X
By Denise P. Kalm, Contra Costa Taxpayers Association
Little more than five years after raising our sales taxes, the Contra Costa Board of Supervisors is going back to the well. On Tuesday, they voted unanimously to move forward with another sales tax increase, further increasing the costs of everyday essentials and making the County even more unaffordable for seniors and working families alike. (See related article)
Although Supervisors express pride over how 2020 Measure X sales tax revenue was spent, many of us question whether the money is going to core government functions. A recent oversight report listed these Measure X funded projects: Office of Racial Equity and Social Justice, Diversity, Equity and Inclusion in Democracy Initiative, African American Holistic Wellness Center & Resource Hub and a Guaranteed Income Pilot. While many readers may agree with these projects, many taxpayers do not, and so they should be privately funded.
As the accompanying graph shows, County revenues have risen sharply in recent years with the passage of the Measure X and increased federal grants to County programs. When I quoted statistics from this graph, Supervisors questioned my accuracy, so let me assure them that the numbers come from the County’s own audited financial reports and budget.
Source: CoCoTax
A large share of the increase relates to Medi-Cal, a federal/state program that funds healthcare for low-income residents. Contra Costa County has aggressively involved itself in Medi-Cal, creating a pioneering Health Maintenance Organization (HMO) plan to provide care to Medi-Cal beneficiaries.
Between 2020 and 2025, the cost of Contra Costa County’s Medi-Cal Plan surged 157% from less than $900 million to almost $2.3 billion. A major contributor to this growth was the decision to extend Medi-Cal benefits to adult undocumented immigrants. According to state data, over 30,000 undocumented Contra Costa adults were receiving free healthcare through Medi-Cal last year.
Until recently, this was not a financial problem for the county because it was able to shift the cost onto the state and federal governments. But now this is becoming more difficult with Congressional Republicans, the Trump Administration and even the state government restricting reimbursements for undocumented immigrant coverage.
To continue growing this program, the Supervisors are now looking to residents to cover the tab by adding 0.625% to our sales taxes Countywide.
I realize that neighbors have a variety of views about immigration. Personally, I think the US should allow more of the talented people we need as well as a program to allow temporary, migrant workers to come here, which might go to support their request to immigrate here legally.
While I am for legal immigration, I do not agree that local communities should be on the hook to provide free medical care to anyone who comes here and completes an application. That policy is unsustainable, and unfair to the rest of us who pay a lot of money for healthcare. There are hundreds of millions of people around the world who would love to come to northern California and not have to worry about our high cost of living, including our high healthcare costs.
While I think we should welcome new neighbors, we should expect them to either shoulder the costs of living here or find friends, relatives, and charitable organizations that will help them do so.
Finally, the pro-tax side may portray your yes vote as a way to resist Trump and DC Republicans. But I urge you to hold two opinions simultaneously that may seem contradictory yet aren’t: you can hate the Administration’s hostile treatment of immigrants while also believing that local government should be fiscally responsible. We have to manage our budgets carefully; those taking our tax money should be just as responsible.
If Supervisors are able to pass this sales tax in 2026 by a wide margin, there is every reason to think that they will come back for even more taxes in the years ahead with cities following them. We already know that a transit sales tax increase of 0.5% is likely to be on the November ballot, another case of failing to manage BART and AC Transit money prudently. So, I hope you’ll vote no in June, talk to your friends, and consider volunteering with our group to oppose this measure.
For more information about the Contra Costa Taxpayers Association visit www.cocotax.org.
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