Escondido’s City Services, Community Programs at Stake in Sales Tax Vote 

In Escondido, years of financial challenges are taking a toll on city departments, affecting services and putting the futures of a historic arts center and the city’s only public library at risk. 

This election season, many residents, first responders and some of the city’s own elected officials are hoping a sales tax measure on the November ballot could bring some relief. 

In July, the Escondido City Council agreed to put a one-cent sales tax measure that started out as a citizen’s initiative on the upcoming ballot. If voters approve it, the city’s sales tax rate will see an increase of one cent, or 1 percent. The current sales tax rate is 7.75 percent, which is among the lowest in San Diego County. 

The measure, called Measure I, is projected to generate around $28 million per year in revenue. It’s backed by the San Diego County Taxpayers Association, the Escondido Firefighters Association, the Escondido Police Officers Association, the Escondido Chamber of Commerce and more. There’s some opposition, but the greatest hurdle will be convincing voters, who have rejected a sales tax increase in the past.  

Still, supporters say it could help close, or at least reduce, the city’s ongoing structural budget deficit, which is projected to reach $18 million each year over the next 20 years. 

In June, city officials had to close an $11.3 million budget deficit using one-time funds and other cost-saving measures. The city used similar methods to close an $11 million deficit last year and an $8 million deficit the year before that. 

To balance these budgets, the city has had to defer maintenance on city facilities and parks, eliminate vacant staff positions, put off critical infrastructure needs, reduce or cut funding to some city programs and more. 

Last year, Voice of San Diego reported that one of the biggest impacts has been to Escondido’s maintenance and public works. That includes upkeep of parks, playgrounds, recreation centers, pools, streets, sidewalks, bridges, storm drains, and other city facilities.    

City finance director Christina Holmes told Voice in 2023 that an estimated $8 million of maintenance has been deferred annually since about 2008, which is now roughly $128 million in backlogged fixes that Escondido still can’t pay for.  

According to its website, the city has had to declare two local emergency proclamations this past year to fix aging infrastructure that failed, costing nearly $13 million.  

In a review of Escondido’s proposed sales tax measure, the San Diego County Taxpayers Association warned that continuing to defer maintenance can have long-term negative impacts that could result in people leaving the city. 

The Association also acknowledged in their report that “Escondido cannot tax itself out of a structural budget deficit,” and will likely have to identify other significant structural changes to solve its budget woes even if the measure passes. 

Escondido leaders have also reduced or eliminated staff positions across many departments. Patrick Wallace, the vice president of the Escondido Firefighters Association, said the fire department’s administrative side is severely understaffed. 

“There are only a handful of people doing the job of like 20 or 30 people,” Wallace said. “They’re running on a skeleton crew and so, they’re tired, they’re less efficient and just like everybody else in the city, they’re overworked.” 

He added that the city’s fire department also needs new equipment, ambulances and fire engines. Some of the vehicles they have now are aging, which in turn, end up costing more to maintain, Wallace said. 

California Center for the Arts, Escondido 

In May, city leaders began looking for a new entity to take over the operations and financial obligations of the California Center for the Arts, Escondido in an effort to save money. 

The city owns the arts center, which opened in 1994, but the California Center for the Arts Foundation, a nonprofit overseen by a board of directors, manages it.  

Each year, Escondido pays a monthly management fee to the foundation for the operation of the Center and pays for all gas and electric bills for the facilities. The city also provides some maintenance and administration work either through direct payments to the foundation or through city employee staff time, according to a city staff report.  

This year, the city will pay $660,000 in monthly management fees to the Center, as well as $1.1 million in gas and electricity costs, plus $108,000 in insurance costs.  

City officials are now accepting proposals from entities that would take over operations of the Center by April 2025, including its associated annual costs, as well as around $5.8 million in necessary upgrades and renovations. 

Gina Lopez, the Center’s CEO, told Voice that a new management structure could mean that drastic changes will be made to the Center.  

“Unfortunately, the process has really damaged our organization,” Lopez said. “People are afraid to book their events and weddings here … because it might not be available after April 2025. We’ve seen donors pull back donations because they want to wait to see if we’re going to be here. My staff, the 150 people that live and work in Escondido, they’re afraid for their jobs.” 

Lopez told Voice that she supports the sales tax measure, but she has been told that the bid process for a new manager will likely continue regardless of whether the measure passes. 

Escondido Public Library 

Escondido’s only public library is also facing an uncertain future because of the city’s structural budget shortfall. 

The library, which has a current annual budget of roughly $3.8 million, has historically been funded by the city’s general fund. But for the next two years, the city will have to use one-time Covid relief funds to pay for the library’s operations. 

After the next two years, it’s unclear where funding for the library will come from. 

Library Director Rino Landa told Voice that at this point, he believes there will still be a library if the sales tax measure doesn’t pass, however, cuts would likely need to be made to maintain any library services. 

“If the measure does not pass, what library services look like in Escondido will have to radically change,” Landa said. “There is almost no scenario where funding can be found quickly enough to continue the exact same level of services. Unless the city and the City Council make the choice to reallocate funding from elsewhere, we’re dealing with a limited pool of funding.” 

A reduction in services would likely mean less hours that the library would stay open, which would impact circulation of library items and the amount of programs and events the library holds. 

It’s Up to Voters to Decide 

It’s impossible to predict whether voters will approve Measure I this November. Escondido voters rejected a similar ballot measure in 2022 called Measure E.  

Critics of a sales tax increase have said the cost of living is too high to place another financial burden on residents. And, they argue, taxes are often regressive, meaning low-income taxpayers may end up paying a disproportionate share of the tax burden. 

Reform California, a political action committee chaired by Assembly Candidate Carl DeMaio, and the San Diego Tax Fighters are among those opposed to the measure. 

Councilmember Consuelo Martinez acknowledged this risk but said there is a similar risk to not passing the measure. 

“There’s the argument of the most vulnerable communities would have to pay, but also the most vulnerable communities stand to lose without it because of increased fees on community services and recreation, as well as the overall reduction in services, which will impact them the most,” Martinez said. 

City staff have said over the years that unless revenue is increased on an ongoing and structural basis, the city could face more drastic cuts to city services, community programs, public safety and public works.