SANDAG plans to nix mileage tax in 2023

 Until then, road user charge remains in place

By Steve Puterski

REGION — The San Diego Association of Governments board on July 8 approved plans to update its 2021 Regional Transportation Plan without a controversial road user charge, but not for another year.

The alternative plan is not expected to return to the board for approval until spring 2023.

The road user charge is a proposed per-mile fee for motorists on local highways and several major arterials to help fund the planning agency’s regional plan, known as 5 Big Moves.

For more than a year, Supervisor Jim Desmond, Republican mayors Rebecca Jones (San Marcos), Matt Hall (Carlsbad) and others have pushed for the removal of the mileage charge after many called the proposal an attempt to “tax” drivers out of their cars and into public transportation.

The $172 billion plan, which primarily focused on transit projects, was initially approved in December 2021 with the controversial road user charge intact.

Democratic mayors Todd Gloria (San Diego), Catherine Blakespear (Encinitas) and Alejandra Sotelo-Solis (National City) and SANDAG staff all claimed the mileage charge was necessary to adopt the plan quickly and avoid missing out on critical state and federal funds.

But in a surprise move, the original proponents of the road-user charge — Gloria, Blakespear and Sotelo-Solis — later flipped their positions to support removal of the charge after public backlash mounted just six months before the June primary.

At the time, Jones, whose city was the first to pass a resolution in opposition to any new taxes or charges imposed by SANDAG, questioned the authenticity and timing of the board members’ reversals.

Further analysis

The board’s most recent action to remove the road user charge — and its projected $14 billion revenue haul — requires staff to update the plan and bring it back to the board.

Antoinette Meier, SANDAG’s regional planning director, said the agency would return with an alternate plan by spring next year.

“We’ve put together a work plan to make sure the plan is compliant with state and federal law,” Meier said. “The (road user charge) influences travel behavior. Removal of the (road user charge) is considered a substantial change because it impacts a variety of factors, not just (vehicle miles traveled) and (greenhouse gases), but also revenues.”

Meier said staff conducted a comparative analysis of the current plan — with and without the mileage charge — to meet a state-required 19.1% per-capita reduction of greenhouse gases, or GHGs, by 2035.

The agency’s findings show an 18.64% reduction in emissions without the road user charge and a 20.4% reduction with the highly-contested road user charge.

“Many elements of the plan have to be updated using the latest data and assumptions,” Meier said. “The model used to create the 2021 Regional Transportation Plan was based on 2016 passenger travel data and older data for commercial travel.”

Several board members have called on staff to use post-pandemic information to gather a more reliable data set.

But an update will require a reevaluation of environmental reviews, projects, phasing and financial implications arising from inflation, Meier said.

The current version of the regional transportation plan is awaiting approval from the California Air Resources Board, which is expected to issue a determination later this month.

Six SANDAG board members — Desmond, Jones, Hall, Richard Bailey (Coronado), Chris Rodriguez (Oceanside) and Julie Ritter (Vista) — sent a joint letter to the state Air Resource Board protesting the current plan, noting SANDAG staff missed its sixmonth deadline to return the Regional Transportation Plan without a road-user charge.

“We urge (California Air Resources Board) to provide strong direction for SANDAG to pursue an inclusive and collaborative process based on the needs and realities of the entire region, including a more realistic approach to funding,” the letter reads. “Extracting billions of more dollars on the backs of already overextended feepayers and taxpayers of the San Diego region is not an option that works for all of us. We do not support any plan that includes a road user charge.”

Proponents have said the mileage fee is a “replacement” for the statewide gas tax, which can only be increased, decreased or repealed by the California State Legislature.

However, Ray Major, deputy CEO of SANDAG, told The Coast News if the plan was implemented in its current form, combustible-engine vehicles would pay both the road user charge and state gas tax. But Major also noted further studies might create alternatives to avoid a double whammy for motorists.

But even if SANDAG's road user charge is completely abandoned, state and federal lawmakers are also considering adopting similar mileage fees.

Minus a toll road

The board also approved eliminating the debt and toll-only operations on state Route 125, known as the South Bay Expressway, by 2027, according to inewsource. The debt totals $143 million, and ownership of the highway would be transferred to Caltrans.

However, an estimated $1.3 billion (in 2020 dollars) and $1.8 billion (year of expenditure) in toll revenues, plus more from debt financing backed by future tolls, is projected from 2030 as part of the funding mechanisms for the Regional Transportation Plan.

In short, the board must now find replacement income to make up for lost toll revenues.

Under the current funding, the 5 Big Moves plan also proposes 819 miles of “managed lanes,” allowing drivers to avoid traffic by paying a fee, which opponents claim are toll roads in disguise.

“These are on top of the fees you’re already paying at the DMV and at the pump,” Supervisor Jim Desmond previously said about the rod user charge and managed lanes. “These regressive taxes are going to hurt the working poor, the most who can’t afford to live next to where they work. Parents can’t hop on a bus to go to the grocery store, orthodontist appointment or take their kid to soccer practice.”

Additionally, there may be another potential budget shortfall, particularly since the board’s majority also wants “free transit for all” by 2030 — a goal that will eliminate at least another $10 billion from the plan's funding.

In the revenue column, the regional planning agency would collect roughly $21.6 billion from two special tax proposals, according to SANDAG’s financing projections.

The tax measures were projected to go to voters in 2022 and again in 2028. A third tax measure by the San Diego Metropolitan Transit System (MTS) is slated for city of San Diego voters in 2024.

But since SANDAG’s two countywide proposals are special taxes earmarked for a specific purpose, each requires a two-thirds supermajority (66.67%) from voters.

According to the most recent state court rulings, the vote requirement for a special tax via citizen initiative is a simple majority, or 50% plus a single vote — a considerably lower bar than if a local government or agency such as SANDAG were to place a tax measure on the ballot.

In a move criticized as an attempt to avoid the supermajority vote requirement for a special tax, a coalition of labor unions, environmental groups and engineering businesses started gathering signatures to place a half-cent tax initiative on the November ballot.

However, the group failed to gather enough signatures to make the cut.

SANDAG RECENTLY approved updating its Regional Transportation Plan to remove the road usage charge and come back with an updated plan in spring 2023. Photo by Steve Puterski to increase, so does the need for locally controlled funding,” said City Manager Greg Wade. “Local control in Solana Beach’s funding would allow the city to allocate funds for enhanced city services, projects and amenities that residents have come to rely on.”

A survey of around 400 city residents conducted earlier this year by True North Research found widespread support for a potential sales tax. About 63% of respondents said they would either “probably” or “definitely” support such a measure on the ballot. In comparison, 25% said they “probably” or “definitely” would not support it, and around 10% said they were unsure.

Other survey findings indicated that 84% of residents are satisfied with city services, and 96% rate the quality of life in Solana Beach as “good” or “excellent.” When asked to rate a list of services based on what should be prioritized for funding, services rated the highest included maintaining roads and filling potholes, keeping neighborhoods, parks, beaches, and public areas safe and clean, and reducing trash and pollution in local waterways and at beaches.

City officials emphasized that while the city is in good financial standing, it is becoming increasingly difficult to fund regular maintenance for its 46 miles of roads and storm drains.

“The residents have told us through the survey that they want to maintain the quality of life that is enjoyed in Solana Beach,” Wade said. “Additional and locally controlled funding would help us keep pace with and expand repairs and maintenance to our streets, sidewalk storm drains and public facilities.”

Council members largely supported the tax idea, stating that it would help the city fulfill the many infrastructure and maintenance needs identified by residents awaiting funding.

“As a council member, one of the things that you do like to be able to address the wants and needs of the community,” said Councilmember David Zito. “There are certainly a lot of them out there, and I think this is an opportunity to provide the community members a chance to start accelerating some of the requests we get. Right now, when we have some of these capital projects out there, it’s like, well, we’re getting plans, we’re wanting to do stuff, but it’s going to take a while for us to come up with the money because we’re a small city.”

Other council members were hesitant to impose more taxes on residents, but as Deputy Mayor Kelly Harless noted, those residents will ultimately have the final say in November. The measure needs at least 50% approval to pass.

“I don’t think anybody likes taxes, and I certainly wouldn’t want to encourage a tax when we don’t need it, but I do want the voters to have the opportunity to get information and decide for themselves when it comes to some of these quality of life issues, so I am supportive of letting our residents weigh in,” Harless said.

The cities of Chula Vista, Del Mar, and Imperial City each have their own 1-cent sales tax in place. Oceanside, Vista and El Cajon have implemented a half-cent sales tax measure, and La Mesa has a three-quarter cent sales tax.

The city of Escondido is also considering placing a sales tax measure on the November ballot after the majority of residents indicated they would support it.

The city clerk will now work with the county Registrar of Voters to prepare an impartial analysis and authorize arguments. Placing the measure on the ballot will cost the city approximately $40,000, according to city staff.

THE CITY’S one-cent sales tax increase proposal would help fund city maintenance and infrastructure projects.

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RACERS BREAK out of the gates during the first race on Opening Day of the summer 2022 racing season at Del Mar. Breakfast Ride (8) would go on to win. Photo by Laura Place

Horses, hats and the high life

 Del Mar sets Opening Day record handle

By Laura Place

DEL MAR — The highly anticipated 83rd racing season at the seaside oval in Del Mar kicked off impressively on Friday with a sold-out Opening Day featuring a $23.65 million handle, shattering the former record by nearly $2 million.

Del Mar Racetrack raked in record wage winnings despite the day’s attendance cap of 21,680, around half of the facility’s total capacity.

The three-day opening weekend from Friday to Sunday is the busiest of the summer season, which lasts 31 racing days concluding Sept. 11 and is expected to be the Del Mar Thoroughbred Club’s most lucrative yet.

Several of the major stake races have been raised significantly from past years. The track’s “Ship & Win” program gives owners and trainers, including several from out of state, their highest offerings in the program’s 12-year history with a $5,000 starter bonus and 50% purse supplement to dirt runners, as well as a $4,000 bonus and a 40% supplement to grass starters.

Opening weekend is a tradition for many attendees, who travel from all over the state and the country to place bets, enjoy the races and put their best foot forward.

Shouts of “Happy Opening Day!” rang out from attendees dressed to the nines as they passed through the gates just before noon on Friday, flooding into the Plaza de Mexico.

Aileen Brazeau of San Clemente said she and her close friend have been attending the races every year since their husbands, who were horse racing partners, passed away. Brazeau was also eager to bet on her friend’s horse, Rosie Ann Rules, in a race later in the day.

“We’re coming out in commemoration of opening day,” Brazeau said, clad in a blue feathered and jeweled hat with a doll of her likeness perched on top. “Since our husbands were partners for 20 years, it’s something we like to do together.”

Even before hooves met the dirt in the first race, the day’s spectacle began with the Opening Day hat contest in the plaza, as women debuted show-stopping fascinators in the categories of Best Fascinator, Most Glamorous, Best Flowers, and Best Racing Theme or other theme.

Solana Beach resident Susan Leonard has been coming to the summer races for 15 years and enjoys entering and volunteering at the hat contest. On Friday, she donned a blue sun hat with yellow tulle, blue feathers and flowers designed by Aimee Fuller to match her sunny yellow dress.

“I call it Cool California because it’s very fresh and natural, with the colors of the sea, but the feel of the race track where the surf meets the turf,” Leonard said. “It’s really fun to be around here and inspire the new contestants that have never been here before.”

Out of the approximately 160 entries, Steffi Poce of Park City, Utah, took the grand prize with her depiction of the circular Del Mar racetrack featuring a horse and rider in the center, all spanning around three feet and impressively balanced on top of her head with a yellow and blue riding outfit to match.

Visit dmtc.com for schedules, tickets and race results for the 2022 summer season.

Photos by Laura Place

TOP LEFT: JOCKEY

JUAN HERNANDEZ

departs the track after coming in first on horse Breakfast Ride in the first race on Opening Day at the Del Mar Fairgrounds. BOTTOM LEFT: STEFFI POCE of Park City, Utah, the eventual winner of the Opening Day hat contest at the Del Mar Racetrack, shows off her racing-themed fascinator on Friday. BOTTOM RIGHT:

SPECTATORS EXCITEDLY

watch the five-furlong turf race at Opening Day of the Summer 2022 season on Friday at the Del Mar Racetrack.