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Special Report: Salinas Budget Luncheon Became Campaign for More Taxes
Posted on Friday, June 03 @ 00:35:42 EDT by Webmaster

Special Reports Dwight Stenbakkenby City Watch
Website & Bulletin Committee

On Tuesday, May 31, the Salinas Valley Chamber of Commerce held a well advertised but sparsely attended public luncheon on the Salinas City budget at the Salinas Sports Complex. 

The luncheon failed to provide any new information and became a campaign for more taxes after the keynote speech by Dwight Stenbakken.

The Salinas City Manager and his team were present for the two-hour luncheon, but the mayor and city council members were noticeably absent.
 
Chamber president Chris Steinbruner made the opening remarks which included a demand without explanation that all video and tape recording devices be turned off.  Cameras continued to record anyway throughout the meeting.
 
Also present was a panel of local financial managers who discussed the Salinas City budget.  They reported meeting with city officials and reading reports given to them, but they did not audit those reports.
 
Stenbakken is Deputy Executive Director of the League of California Cities, which represents hundreds of cities throughout the state.  He addressed statewide issues in his keynote speech.
 
Stenbakken was very critical of public employee pensions which he said had become excessive, and warned that they needed to be reduced quickly or risk voter reform.  Stenbakken also credited Governor Schwarzenegger for the success of Prop. 1A, which guarantees state funding for Salinas and other local governments.
 
The presentations by budget panelists appeared scripted and resembled reports made by city officials.  They referred to revenue amounts as per capita and avoided expressing expenses in dollars.
 
Panelists mentioned how much money state government took in city tax revenue, but neglected to mention how much money was replaced.  Salinas City budgets show $30 million in new property tax revenue by next year to replace portions of vehicle license and sales taxes taken by the state.  The property tax revenue came from public schools.
 
When questioned by the audience, budget panelists had problems answering simple questions as to the character of city government revenue and the method they used to compare Salinas with other cities.  At one point, a panelist explained he was a manager and “not an expert on anything.”
 
The budget panel included a member from local government, Mike Hutchinson with the Salinas Valley Memorial Healthcare System; a member from banking, Margaret Sprude with HSBC; and two members from agri-business, Don Barnett with NewStar Fresh Foods and Mae Woodward with European Vegetable Specialties Farms. 
 
How panelists were chosen was not revealed, but products or services sold by their employers are exempt from sales taxes.
 
The chamber supported three tax increases last year, including a sales tax increase that failed.  Now they want to try again with a costly special election.

*Published June 3, 2005

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