South OC Business Community Should be Concerned about Measure M

South OC Business Community Concerned about Measure M

By Wayne Brown

It’s no secret that a strong future economy is heavily reliant upon a well-educated workforce.

For this reason, our schools have long enjoyed tremendous support from the local business community. From sponsoring District events and campus book drives to advocating that our region gets its fair share of state education funding, our business leaders have stepped up time and time again. That’s on top of the millions of dollars in taxes levied upon south County business, property and homeowners each and every year!

Key to this support is an understanding that the money will always be spent wisely.

Unfortunately, that’s just not the case with the massive bond measure suddenly thrust upon voters by the Capistrano Unified School District.

Measure M, on the November 8th ballot throughout the District, will cost taxpayers approximately $1.8 billion to fund $889 million in school facilities improvements. Yes, that’s over $900 million more than is needed for school improvements due to interest and other costs.

Some of it will be funded through new taxes on District homeowners who will be assessed with an estimated levy of $43 per $100,000 in home and property value every year for the next 35 years. 35 years!

But what has most surprised many south Orange County business and property owners is that Measure M, if passed, would assess taxes on unsecured property as well. Such assets include office equipment, furniture, fixtures, and other business improvements.

Looking to expand your small business? You may be taxed. Investing in a new copier or delivery vehicle? Taxed. Additional examples of unsecured property that would be hit by Measure M include boats, jet skis and RVs. All would be taxed, according to the Orange County Treasurer-Tax Collector.

Combine all of these taxes and a local homeowner who also owns a growing business could face annual tax hikes of $400, $500, $600 or more! That’s on top of the one or more existing Mello-Roos taxes already being paid by many south Orange County home and property owners.

Clearly, this proposed tax load presents significant challenges to entrepreneurs new to the area or those hoping to expand their business and grow jobs in south Orange County.

What’s also concerning is that some of the money isn’t even guaranteed.

Part of the bond measure depends on the fate of statewide Proposition 51, also on this November’s ballot. If the Proposition passes, CUSD will apply for approximately $270 million in matching funds from the state. But there's no guarantee that CUSD would receive funding even if Prop. 51 were to pass.

But more than anything, this bond just asks for too much money with no clear plan for how our tax dollars will be spent.

A prudent businessperson or consumer purchasing a service will naturally ask what he or she will get for their money. They want certainty. But that’s not what we get with Measure M. Instead, voters are directed to a list on their website of all the improvements that CUSD says it may wish to tackle in the coming years.

Rather than a formal spending plan that concerned voters can review prior to entrusting millions of their tax dollars to District officials and school board politicians, we get a wish list.

Imagine: “Yes, Mrs. Homeowner, I need you to write me a check for $10,000 and you may get your new porch….or a new fence…or perhaps new landscaping. I’m just not sure. But my contract does state that I can change my mind in the middle of the project. But go ahead and write that check!”

Again, we’re not opposed to investing in our local schools, nor necessarily the facilities improvements listed on the District’s website, nor a bond amount that would allow the District to obtain $270 million in state matching funds.

What we’re opposed to is an unnecessarily massive bond measure that adds to the already oppressive tax burden faced each year by our local residents and business owners, with no formal plan for how the dollars would be spent!

As a result, a growing list of south Orange County businesses, Chambers of Commerce and advocacy organizations like the South Orange County Economic Coalition are urging voters to reject Measure M when they go to the polls November 8th.

Then, the District should come back with a more reasonable proposal that includes an actionable spending plan and perhaps a more reasonable dollar amount that doesn’t overtax our local home and property owners.

That’s just good business.