Health care tax may go on ballot
Sales tax
By Rebecca Vesely, STAFF WRITER, The Oakland Tribune
Thursday, November 06, 2003

A proposed countywide half-cent sales tax to fund health care is moving forward, as stakeholders hammered out details Tuesday night for the measure that will likely appear on the March 2004 ballot.

If at least two-thirds of voters approve the measure, Alameda County would have the highest sales tax in the state -- at 8.75 percent -- surpassing San Francisco County, which has a sales tax of 8.5 percent, according to the state Board of Equalization.

A blue ribbon task force of stakeholders, including labor and community groups, physicians and county officials -- led by Supervisor Nate Miley -- debated which health services would benefit from the approximately $90 million the tax would raise annually.

The task force voted to recommend to the Board of Supervisors that at least 70 percent of the revenues fund the county medical center, which includes Highland Hospital in Oakland, Fairmont Hospital in San Leandro and three clinics -- in Oakland, Newark and Hayward.

The medical center is facing a $51 million budget deficit and in June closed two outpatient clinics in Oakland and San Leandro amid funding problems. In July, a plan to close the trauma center at Highland Hospital and all remaining outpatient clinics was floated.

"The only reason we're doing this (ballot measure) is because the medical center is about to go down the tubes," said Kay Eisenhower of Vote Health, a consumer advocacy group.

Under state law, the county is required to provide health services to the poor. Because of this, some say the county medical center should get nearly all -- maybe 90 percent -- of the money the new tax would raise.

"The medical center is the only truly public institution that has an obligation to take care of people," said Charlie Ridgell of Service Employees International Union Local 250, representing health care workers at the medical center. "I would be very opposed to giving Sutter or any other private hospital a percentage."

Others raised concerns that dedicating so much of the proposed sales tax revenue to county hospitals could hamstring the county if it were to lose key state funds, such as the vehicle license fee tax hike. Gov.-elect Arnold Schwarzenegger has pledged to repeal the car tax increase. The car tax brings in about $30 million for Alameda County, of which $15 million goes to health services, according to county officials.

"The car tax is so important to us," said Dave Kears, director of the county's Health Care Services Agency, who originally proposed that only half of the new sales tax revenue go to the medical center, with the rest earmarked for other hospital emergency rooms, community health groups, discretionary funds and long-term capital investments.

The Board of Supervisors will vote on the 75-word initiative language at meetings on Nov. 25 and Dec. 2.

Board president Gail Steele cautioned that because the county-run hospitals are in Oakland and San Leandro, getting support from voters in Fremont and Pleasanton could prove difficult if none of the money went to facilities serving those areas.

"I'm committed that we find language that would reflect that the money would follow the indigent in the county," Steele said. "Then I think we would have tremendous support throughout the county for this."

A poll of 600 people countywide found that 72 percent supported a half-cent sales tax for health care. Fifty-four percent favored funding for health care generally and 47 percent favored funding for health care for low-income people. The poll was conducted by Evans/McDonough as part of research on support for a new tax.

One way to make the tax more appealing to voters in the southern and eastern sections of the county, some task force members said, would be to include the Alameda Health Consortium as one of the beneficiaries. The consortium is a network of clinics serving the poor, including Tri-City Health Center in Fremont and Valley Community Health in Livermore and Pleasanton.

Contact Rebecca Vesely at

rvesely@angnewspapers.com

There's little time to debate the details. The final language, after it is approved by the supervisors, must go to the registrar 88 days prior to the March vote -- on Dec. 5.

"This deadline puts our backs against the wall," Supervisor Miley said.

Contact Rebecca Vesely at rvesely@angnewspapers.com