San Diego Housing Bubble News and Analysis

A "quality of life" measure that would boost the sales tax you pay at the mall is a step closer to reality after a vote Wednesday in Sacramento.

The Assembly Local Government Committee voted 6-0 to pass a bill by Sen. Christine Kehoe, D-San Diego, that would set the stage for a potential hike of a half-cent on the dollar in 2010 to pay for billions of dollars worth of environmental endeavors.

Such projects could beef up North County's thinning shoreline, clean up area rivers and bays, purchase open space and fund trains and buses.

If it were to pass, the measure would boost the 7.75 percent existing sales tax in much of North County. The exception is Vista, where shoppers pay 8.25 cents on the dollar.

The legislation, Senate Bill 1685, would open a way for a regional planning agency, the San Diego Association of Governments, to place the measure on the ballot. It cleared the Senate on a 23-15 vote April 28. Now it is headed for the Assembly floor where passage is considered likely.

Under current California law, the association has authority to seek voter approval for a sales tax of up to 1 percent, but can use those funds only for transportation. The Legislature has to authorize spending for other purposes, such as the environment.

A sales tax measure is not a foregone conclusion, however, said Gary Gallegos, executive director for the San Diego Association of Governments. The association's board is considering other potential sources of revenue, such as hotel taxes, car rental fees and real estate transfer fees.

But the sales tax is one of the more lucrative tools for financing local public works projects and is at the top of the list of options.

"In today's dollars, a half-cent generates about $240 million a year," Gallegos said in a telephone interview from Sacramento following the committee's hearing.

Gallegos said the board is expected to appoint a panel in July to begin crafting an environmental measure, selecting projects to be funded and recommending a funding source. With a target election date of November 2010, the committee would have a little less than two years to map out a strategy.

The idea of a "quality of life" measure was broached in the months leading up to the 2004 TransNet extension measure, which funds freeway and transit construction projects through a half-cent sales tax.

At the time, local politicians were worried about the difficulty of passing the measure given the high bar required to clear for passage ---- 66.7 percent approval. And they figured any organized opposition from well-funded groups would derail the campaign.

Consequently, board members invited conservationists to hop aboard by offering to come back a few years later with a similar measure for environmental projects.

But San Diego County Taxpayers Association Executive Director Lani Lutar noted the specific promise called for exploring funding for habitat preservation. Nothing was stated explicitly about the other components being considered for the emerging measure, she said, and for that reason the taxpayers group opposes Kehoe's bill.

"We don't agree with the addition of beach sand replenishment, water quality and funding for transit operations," Lutar said.

If the association wants to expand the purpose, she said, it should ask for the public's help in determining precisely what should constitute a "quality of life" measure.

"Someone might argue that if you are talking about quality of life, fire protection should be at the top of the list," Lutar said.

Conservationists support the additions.

"We have to do something about beach closures," said Eric Bowlby, spokesman for the Sierra Club's San Diego County chapter. "Healthy water is important for our economy. We don't want the world to think that San Diego has polluted coastal waters."

Bowlby didn't take part in the 2004 negotiations. But Dan Silver, executive director of the Endangered Habitats League in Los Angeles, did.

Silver said habitat, water, the shoreline and transit all are wise investments.

"What this would do is allow San Diegans to invest in their future in a very broad way," Silver said. "TransNet, you might say, was part one. And now we need to do phase two."

Steve Aceti, executive director of the Encinitas-based California Coastal Coalition, which represents 35 cities and five counties, said, "Something like this is going to be crucial because the Army Corps of Engineers is not turning out to be a reliable partner in beach restoration. And who knows when the state will get its budget in order