As climate change and its consequences become increasingly apparent, local governments are urged to take proactive and preventive measures to address its impacts. In San Diego, a variety of propositions and initiatives have been introduced to confront climate challenges, ranging from renewable energy efforts to policies that may entail some focus on climate change-related issues. At Hammond Climate Solutions Foundation (HCSF), we continuously analyze these options to better understand what is best for our community and how we can expedite positive change toward a just and livable future. We believe that it’s essential for citizens to be informed about the options available on this year's 2024 ballot.
Proposition 4
In recent years, environmental groups and renewable energy advocates have pushed for increased investment in climate action, particularly after Gov. Gavin Newsom and the Legislature approved a $54.3 billion plan known as the "California Climate Commitment" in 2022. However, due to budget constraints, this commitment was scaled back to $44.6 billion for the current fiscal year.
Proposition 4 is a significant measure on California's ballot, proposing a $10 billion bond aimed at addressing the state's most pressing environmental challenges. If passed, the bond would provide funding for projects related to drought, flood prevention, wildfire mitigation, and sea-level rise, among other climate-related concerns. The initiative is part of California’s broader commitment to lead in climate action. However, the bond raises concerns about long-term financial implications, particularly given the state's existing deficit.
Key Goals
The largest portion of the bond, $3.8 billion, would be allocated to projects related to drought, flooding, and water supply. These funds aim to improve water availability and quality, reduce the risk of flooding, and upgrade water facilities. Specific initiatives include enhancing water recycling and transforming wastewater into potable water for homes and drinking.
In addition, $1.5 billion would go toward "Forest Health and Wildfire Prevention," focusing on strategies like tree thinning and the removal of overgrown vegetation to reduce wildfire risk, a particularly urgent issue for the state.
Another significant portion, $1.2 billion, would be used to address sea-level rise and coastal restoration efforts. The goal is to mitigate the risks posed by rising ocean levels and to protect coastal ecosystems and fish populations.
Other notable allocations include:
$1.2 billion for land conservation and habitat restoration.
$850 million for renewable energy infrastructure, including offshore wind energy.
$700 million for expanding and repairing local and state parks.
$450 million for reducing the impacts of extreme heat on communities.
$300 million to help farms respond to the effects of climate change and adopt sustainable agricultural practices.
Fiscal Impacts
While the proposed bond addresses a wide range of pressing environmental concerns, the financial implications for California’s taxpayers are significant. According to the Legislative Analyst’s Office (LAO), the state would incur an additional $400 million annually over the next 40 years to repay the bond, potentially increasing the state’s existing deficit. This comes at a time when California is already facing a projected $46.8 billion in its budget.
This could lead to difficult decisions in future budget allocations, as funds will need to be diverted to service the debt from the bond. While the environmental projects are undeniably important, voters will need to weigh these benefits against the financial strain that Proposition 4 could impose on the state’s economy.
Balancing Climate Action and Fiscal Responsibility
Proposition 4 represents a critical investment in California’s climate future, but it also highlights the tension between taking immediate climate action and managing long-term fiscal health. The bond would finance necessary projects to combat drought, wildfires, sea-level rise, and other pressing environmental issues, potentially making California more resilient to climate change. However, the reliance on debt financing raises questions about whether the state can sustain these investments without exacerbating its fiscal problems.
Voters may also consider alternative approaches to achieving these climate goals without incurring additional debt. Options like community-based climate initiatives, rooftop solar projects, and more efficient water management could provide cost-effective and sustainable solutions. Proposition 4’s goals are well-aligned with California’s commitment to addressing climate change, but its reliance on debt may not be the most financially prudent path forward. Voters will need to carefully balance the need for immediate climate action with the state’s long-term fiscal responsibility
Measure E
Measure E is a proposal by the City of San Diego to implement a 1% general transactions and use tax (sales tax) increase. If passed, this would raise the current sales tax in San Diego from 7.75% to 8.75%, with the potential to generate an estimated $400 million annually for the city’s General Fund. Unlike a special tax, which would be earmarked for specific purposes, Measure E is a general tax, meaning the revenue could be used for a wide variety of city services and initiatives.
The additional revenue could be critical for addressing major city needs, but it comes at a cost. The sales tax is regressive, meaning it disproportionately affects lower-income households who spend a larger percentage of their income on taxable goods. For San Diego residents already dealing with inflation and high costs of living, this could add to their financial burden, making the decision about Measure E a challenging one for voters.
Key Goals
The primary goal of Measure E is to generate additional revenue to fund the city’s broad array of public services, including:
Public Safety: Enhancing fire, police, and emergency services.
Infrastructure Repair: Allocating funds for the maintenance and improvement of streets, sidewalks, storm drains, and other city infrastructure.
City Services: Supporting parks, libraries, recreational facilities, and other community resources.
While there are no legally binding restrictions on how the funds will be spent, the city has indicated that the proceeds would be used to maintain or improve upon the existing level of services, rather than replacing current spending.
Fiscal Impacts
If Measure E is approved, the additional $400 million annually would boost the city’s financial resources, providing more flexibility to address both immediate needs and long-term projects. The new revenue would be subject to the same auditing and oversight as other General Fund revenues, with annual reports to the City Council ensuring accountability. This could allow for more sustained investments in infrastructure, public safety, and community programs.
However, the measure has sparked concerns about the potential burden on consumers, particularly low-income residents. Sales taxes are regressive, meaning they disproportionately impact lower-income households, who spend a larger percentage of their income on taxable goods. This could create financial strain for some residents, particularly in the context of economic challenges like inflation.
Balancing Climate Action and Fiscal Responsibility
Although Measure E is not explicitly tied to climate-related projects, the revenue it generates could be leveraged to support the city’s broader environmental and sustainability goals. For example, funds could be allocated to infrastructure improvements that enhance climate resilience, such as upgrading stormwater systems to handle extreme weather or investing in sustainable public spaces.
At the same time, the financial impact on residents must be considered. Sales taxes tend to disproportionately affect lower-income residents, and in a time of inflation and economic uncertainty, some may question whether the tax is the best approach. Still, the measure offers a way for the city to address infrastructure deficits and other challenges without relying on borrowing or incurring long-term debt, a contrast to Proposition 4’s bond-financed approach.
In addition, while the increased revenue could support long-term sustainability and resilience efforts, the regressive nature of the tax could exacerbate financial inequities. As with any tax proposal, voters will need to weigh the potential benefits to the potential city services and infrastructure against the economic impact on households, particularly those already struggling with the high cost of living.
Measure G
Measure G is a proposed half-cent sales tax increase on the November 5, 2024 ballot aimed at transforming transportation across San Diego County. The measure is expected to raise approximately $900 million annually, funding critical infrastructure improvements including fire protection, road maintenance, public transit, and environmental preservation. At Hammond Climate Solutions Foundation (HCSF), we have endorsed Measure G due to its alignment with sustainability goals and its potential to significantly enhance climate resilience.
Key Goals and Fund Allocation
Measure G prioritizes a wide range of transportation and environmental improvements, with funds allocated as follows:
50% toward major public transit infrastructure projects, promoting sustainable transportation and reducing traffic congestion.
27% for capital projects to improve road and highway traffic flow and community safety.
7% for local street maintenance and repair, addressing San Diego’s crumbling infrastructure.
12% for transit operations and maintenance within the Metropolitan Transit System and North County Transit District.
2% for the repair, rehabilitation, and replacement of infrastructure within the rail transit system.
2% or less allocated for general administrative services.
These funds would be placed into a “lockbox,” ensuring that they are used exclusively for the designated projects. If any funds are misused, the oversight committee can refer cases for criminal prosecution.
Fiscal Impacts
If approved, Measure G would raise the countywide sales tax to 8.75%. While this increase may pose a financial burden on some residents, particularly lower-income households, the long-term benefits could include reduced traffic, enhanced safety, and improved infrastructure. By securing additional state and federal matching funds, Measure G would maximize local investments in transportation and environmental sustainability, ensuring a more sustainable and expansive public transportation system.
Balancing Climate Action and Fiscal Responsibility
Measure G includes stringent fiscal safeguards such as independent citizen oversight, public transparency, and annual audits. All funds remain under local control, and for every dollar generated, two dollars in additional funding will be secured from state and federal sources, ensuring billions for local improvements.
At Hammond Climate Solutions Foundation, we endorse Measure G because it offers significant opportunities to advance climate action. The measure’s emphasis on expanding public transit infrastructure, protecting natural habitats, and improving transportation safety aligns with our mission to promote sustainability. It also addresses the increasing wildfire risk by improving evacuation routes in vulnerable areas.
While the proposed tax increase poses a financial consideration, the long-term benefits of improved roads, enhanced transportation safety, and stronger environmental protections make Measure G a vital investment in San Diego County’s future. Whether the measure will fully prioritize climate action remains to be seen, but its potential for positive, lasting environmental impact is undeniable.
With the 2024 ballot offering important decisions on a variety of issues, including those related to climate and infrastructure, it is crucial for voters to engage with the options available. These measures will have long-term implications for how San Diego will address environmental concerns, public safety, and community needs.
At Hammond Climate Solutions Foundation, we encourage all citizens to stay informed and take part in the voting process. Your participation helps shape the direction of our community and ensures that we continue working toward a sustainable future.
For more information on local ballot measures and how to vote, visit the San Diego County Elections website.
