Hayward’s financial crunch has been exacerbated by the categorical inability of our State’s legislature to hammer out a working budget.
In these tough economic times, the public is taking increased notice of how the financial condition of California has affected public services.
Cal State East Bay Senior and Hayward native Ian Espejo’s concerns are not unusual.
“Nothing’s been done about the cracks and potholes on Carlos Bee Blvd.,” says Espejo. The condition of local roads, walkways, and street lights top the list of concerns voiced by Espejo and other students.
The City of Hayward has not sat idly by as foul economic conditions continue to cast a shadow over California. Hayward Mayor Mike Sweeney explains that “the State since 1992 had been taking away property tax from local government.”
Approximately $3.6 to $3.7 billion per annum from local property taxes would then be deposited into public education funds. After the money was transferred to public education, the State would then seize an equal amount from the public education fund to place in the State’s General Fund.
Once the money reached the General Fund, the State could then route the money wherever it pleased. With a large portion of the State’s budget mandated to go to specific programs, every inch of leeway brought by raiding other funding sources has been pursued. This has allowed the State to fund a myriad of programs and services not covered by mandated funding mechanisms; in the State’s constitution.
“The reason they did that is because constitutionally property tax must stay local. So, in essence the State laundered the money through the schools,” says Mayor Sweeney. By indirectly transferring property tax revenues to the General Fund using public education earmarks, the City of Hayward loses between $5 and $6 million per year.
Mayor Sweeney indicates that the State’s requisitioning of local government monies is not just a Hayward problem; it is a statewide problem.
“The State continually takes money away from us and other local governments to balance the State’s budget,” say Mayor Sweeney.
The city recently finalized a budget that will be balanced for the next two years. The Mayor indicates that the services provided through the current city budget could have been broader and more effective, but he indicates that the main stumbling block that stands in the way of efficient service is habit of the State to take away money as it pleases from local government to balance the State’s budget.
“We could provide more services and do a better job for our citizens if the State of California would allow local government revenues to stay local,” said the Mayor.
“We have been working hard as a community to hold things together but the State keeps coming back to take more money. We’ve managed to balance our budget in these difficult times and we think the State of California should do the same thing.”
In spite of the challenges to balancing the City’s books brought about by forced financial levies from the State, Mayor Sweeney remains confident of Hayward’s ability to cope.
“We managed to [create a balanced two year budget] without having to layoff police officers or close any fire stations, or worse,” said the Mayor. “All things considered Hayward has done a good job so far to keep our heads above water.”
While it is unlikely that casual complaints about Hayward’s ability to provide services will end, some Cal State East Bay students come equipped with a perspective that allows them to compare Hayward’s services to those of other cities.
“Roadways are by far better here than they are in San Francisco,” says Cal State East Bay student Christopher Greco. “I have noticed a much quicker response time to fill potholes here than in the City.”