Social Safety Net Must Be Expanded

From my perspective as Chairperson of the Board of Directors for MHCAN, I have come to understand that mental and behavioral health services and support are critical elements in addressing the social challenges facing our community. Certainly, access to mental and behavioral health services and support are key components in our ongoing efforts to create positive outcomes for people experiencing houslessness. Moreover, no community policing or public safety program can hope to succeed without access to these services as a central part of the overall strategy. Although funding and providing these services is thought to be primarily a county function, the City of Santa Cruz can, and should, do its part to generate readily available mental and behavioral health resources. This is particularly true in our downtown area in terms of the "curbside" services and support such as are currently being provided by the Downtown Outreach Workers Kris Younggren and Danielle Long. This program is making a difference and should be expanded. But how, you may ask, do we fund the expansion of this innovative and results oriented program? Let me suggest this.

The Transient Occupancy Tax (TOT), also known as "hotel tax" or "bed tax," is authorized under the State Revenue and Taxation Code 7280 as an additional source of non‐property tax revenue to local government. This tax is levied at a rate of 11% in the City of Santa Cruz under the provisions of Santa Cruz Municipal Code Section 3.28.030. The tax is charged to the guest and separately stated from the amount of rent charged. Estimated revenue from the TOT for 2016 was $10 Million. 2017 revenue is estimated at $12 Million. Using those revenue figures ( which were generated by the city's own Finance Department), 1% of the TOT raises about $1 Million annually. I propose that we put a measure on the ballot which would raise the TOT to 12%. This is both reasonable and timely in consideration of the fact that the most recent increase in the TOT (from 10 to 11%) was approved by the voters of Santa Cruz in 2012. The additional $1 Million would not be entirely designated to fund mental and behavioral health services. However, it would be eminently reasonable and fiscally responsible to designate 30% of that increased revenue to fund these services. $300,000 the first year after passage of this proposed measure (and more as TOT revenues increase in succeeding years) could make a real difference is terms of measurable results produced and lives changed for the better within our city.

For all the discussion in recent times about the importance of compassion in our community, we have done precious little to extend that compassion in a real world, practical sense to those whose need is daily and ongoing. This relatively modest expansion of our social safety net is something we can do as a community because we can do better, we should do better and we must do better.

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