CA Supreme Court upholds half-cent sales tax increase for childcare

(BCN) — Backers of an Alameda County sales tax increase to fund child care are celebrating after a ruling by the California Supreme Court has finally validated the measure, four years after voters approved it.

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Measure C passed with 64% of the vote in 2020 but was challenged by the Alameda County Taxpayers Association and others, who said it needed two-thirds approval because it was a new tax.

In a ruling Wednesday, the court said the measure was a citizen-led initiative, not a lawmaker-sponsored ballot measure, and therefore needed only a simple majority to pass.

Proponents said in a press conference Friday that the 20-year half-cent sales tax increase is expected to generate about $150 million a year.

The measure’s supporters included First 5 Alameda County, Parent Voices Oakland, the National Union of Healthcare Workers, Service Employees International Union, and other childcare advocates.

Clarissa Doutherd, Executive Director of Parent Voices Oakland, said the organization was disappointed that the measure faced a legal challenge right as the COVID-19 pandemic hit.

“It is disheartening that families have had to wait during one of the most traumatic and difficult times, economically, public health-wise, and in our systems, that families and our care workers have had to wait for four years — four devastating years — because a small group decided to target this initiative,” Doutherd said.

Doutherd said hundreds of millions of dollars that had been frozen in escrow as the legal challenge unfolded can now be accessed.

The money will be divided into two accounts, with 20% devoted to pediatric health care in an account overseen by a citizen oversight committee.

The other 80% will be dedicated to child care, preschool and early education, to be administered by First 5 Alameda County. The organization must still choose an oversight board that will establish a spending plan.

“Access to child care and early care and education is crucial for children’s development,” said Kristin Spanos, Chief Executive Officer of First 5 Alameda County.

The 2020 measure was the second attempt to pass dedicated funding for child care. In 2018, the measure narrowly failed after receiving 66.2% of the vote, just shy of the 66.67% majority needed because it was placed on the ballot by the Alameda County Board of Supervisors.

Doutherd recognized the efforts of the late supervisor, Wilma Chan, who championed both measures. Chan died after being struck by a driver as she crossed a street in Alameda in 2021.

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