Early returns show San Diego voting "no" on Measure E.
Why it matters
If passed, Measure E would increase the sales tax within the City of San Diego by 1% starting April 1, 2025. Budget analysts estimate it would add $360 to $400 million to the City of San Diego’s general fund, which pays for core city services, in the first year.
The city faces a $200 million structural budget deficit. Plus, the city needs an estimated $9.25 billion over the next five fiscal years to address its infrastructure backlog.
"It is the opportunity to address long standing shortages that have been around for decades, and have held our city back, and have caused our infrastructure and public assets to fall into disrepair," Mayor Todd Gloria said before the City Council voted to put it on the ballot.
By the numbers
The current sales tax rate in the city is 7.75%. The city of San Diego gets 1% of that, or one cent on each dollar that is subject to sales tax. If passed, Measure E would increase the rate to 8.75% and bring the city’s sales tax revenue to two cents per dollar.
It would put the sales tax rate within the city on par with others in San Diego County.
“If you’re a San Diego resident and you shop or eat or pay for things in eight of our neighboring cities, you already pay a higher sales tax when you visit those businesses,” District 7 City Councilmember Raul Campillo said. “If you live in La Jolla and you drive to Del Mar for lunch at Board and Brew, you’re paying a higher sales tax by eating there. If you live in Barrio Logan and you go to buy a car at National City Mile of Cars, you’re paying a higher sales tax.”
Del Mar and National City both have sales tax rates of 8.75%.
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Looking ahead
The outcome of Measure E could play a major role in future city budget decisions.
This year, city leaders balanced the budget by moving money from some special funds into the city's general fund and using grant money and excess savings to pay for ongoing expenses. The City Council considered cuts to equity programs, libraries and other departments in order to balance the budget.
District 1 City Councilmember Joe LaCava warned that those kinds of cuts could be coming next year without additional revenue.
“The safety valves we used to balance the FY25 budget will not be available to us,” he said before voting to put Measure E on the ballot.
In a city budget guide published Oct. 29, Independent Budget Analyst Charles Modica said Gloria will release a five-year financial outlook on Dec. 4, "which will allow time to factor the results of the November election into the forecast."
Counting the ballots
According to the County Registrar of Voters, the first returns available around 8 p.m. on election night only include mail-in ballots and vote center ballots received before Election Day.
After that, results on election night will include only the vote center ballots cast on Nov. 5. The Registrar continues to count remaining ballots and post returns until the election is certified on Dec. 5.
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