“Public Information” to Promote New Taxes, Paid for by Taxpayers

Did you know your taxes are being used to advocate for more taxes? Well, not exactly. It’s against the law for public agencies to engage in “advocacy.” The people running these agencies who want to raise your taxes may only spend public funds in order to “communicate” with you about their proposals. And so they “communicate” good and hard. And then you vote.

An example of this, and there are many, is the City of Fullerton.

To cope with a projected $7.9 million deficit, the Fullerton City Council has approved a 1.25 cent sales tax increase, which voters will either approve or reject this November. The city expects to raise $25 million per year through this tax. At first glance that appears to be overkill, but first glances can be deceptive.

For starters, nobody knows how far revenue will drop. The pandemic shutdown is entering its eighth month with no end in sight. And while tax revenue falls across the state, pension costs continue to rise. For Fullerton, this is documented in the CalPERS actuarial reports for the city’s miscellaneous and safety employees. These reports, the most recent available, were released in July 2019, well before COVID-19 burst the global investment bubble.

The reports show that Fullerton was already pouring $25 million into CalPERS in the current fiscal year, an amount projected to rise to over $33 million by 2025. And with 70 percent of that going into public safety pensions that were only 64 […] Read More