Mendocino Coast Hospital District Parcel Tax - June 7, 2005

The Employers Council of Mendocino County (ECMC) recommends a no vote on Measure R. This measure would levy a tax against each legal parcel of real estate in the District to pay for part of the Mendocino Coast District Hospital's operating expenses.

We have two basic problems. First, if a subsidy of this sort were justified the tax should focus on the people who use the hospital - residents, employees and visitors. Measure R doesn't do that, and the results aren't fair. Second, Measure R does nothing to solve the hospital's long-term problems; it simply postpones the tough management decisions necessary to get the hospital back on a sound financial footing.

This measure will create unfair results in three ways. First, people who own identical properties will pay different amounts. Some property is composed of only one legal parcel whereas other similar properties are divided into multiple parcels. Those with more parcels will be forced to pay more than others with the same amount of property.

Second, farming, ranching and other rural families will be charged more than city families because their property is often divided up into multiple parcels. The same number of people in a family, but they will pay much more tax. Third, people with bare land with no people on it will pay this tax. Land doesn't use hospitals; people use hospitals. A fair real estate oriented tax would focus on "improved" residential, commercial and industrial property, not on empty land.

Beyond these issues of fairness, we believe taxes shouldn't be raised if necessary services can be provided for less expense. Families and local small businesses can't raise taxes to cover losses. ECMC recommends the Mendocino Coast Hospital develop a serious business plan geared toward the immediate needs of the coast and realistically attempt to live within their means.

The Employer's Council represents the views of 200 businesses in the County that provide about 4000 jobs in the community.