City to Chamber: Charter Amendment Bad for Santa Monica

By Jorge Casuso

Feb. 19 – After hearing from City officials, who warned that a charter amendment circulated by education advocates would be devastating to the municipal budget, the Chamber of Commerce board Wednesday took no position on the measure slated for the November ballot.

Instead, several chamber board members indicated they would like the City and the measure’s sponsors -- the Community for Excellent Public Schools (CEPS) -- to hammer out an alternative to the “divisive” measure, which would require the City to give at least $6 million to the cash-strapped School District every year.

“We probably will take a vote eventually,” said Kathryn Dodson, the chamber’s executive director. “I don’t think there’s a big move to do something right away.

“If it came down to a vote, I’m not sure what would happen,” Dodson said. “We’re not there yet.”

Mayor Richard Bloom -- who attended the closed-door meeting along with Councilman Herb Katz, the city manager and finance director -- said it was “significant” that the chamber board, which already heard from CEPS, has taken no stance.

“I thought it was appropriate,” Bloom said after the meeting. “It shows the chamber was stepping back and perhaps reconsidering. Some people thought this was something they should automatically support.

“I was really glad the chamber waited, and they appeared to be listening about how irresponsible the measure is,” the mayor said. The chamber not taking a position, he added, “Is very significant from my perspective. It’s a positive sign.”

“I’m happy,” Katz said after the meeting. “I’d like you not to support it,” Katz said he told the board, “but I’d be happy if you hold off and not take a position.”

The core of the City’s case was made during an hour-long presentation by Finance Director Steve Stark, who projected colored graphs highlighting the municipal budget and the fiscal challenges facing the City, those who attended the meeting said.

Stark explained how the City Council closed a $16.8 million funding gap in the current budget and how it faces a $4 million shortfall in the 2004-05 fiscal budget the council will hammer out in May.

The finance director also told the chamber that the council provides $3 million a year to the school district (an amount it boosted to $5.25 million in the current fiscal year) and another $12.1 million a year to fund youth programs.

“We think all of our money is allocated for some City service,” Stark said. “Additional costs would have to come from some additional revenue source or cuts in City programs.”

Bloom warned that if the measure -- which requires the signatures of about 8,000 registered voters to make the ballot -- passed, the City would have to slash services.

“The measure is well-intentioned, but fatally misguided,” Bloom said after the meeting. “It will be devastating to the funding of something, because this money has to come from somewhere, and $3 million budget cuts is very, very serious. Proponents have failed to say where the money would come from.”

Bloom also worried that the measure does not require any oversight.

“There’s virtually no oversight allowed,” he said. “If there was gross mismanagement or malfeasance, there is nothing the City could do about it. We still have to send the money. That’s not the way we do business in Santa Monica.”

Katz said the measure was “rigid” and “landlocked” the City’s decisions at a time when the State’s budget woes require it to be flexible. He said the City and the measure’s sponsors should come up with an alternative.

“Let’s come up with something we can all agree with, a contractual agreement, instead of a charter amendment that is set,” Katz said. “It’s a divisive issue. It will take everyone down the pike.”

Katz said City Manager Susan McCarthy would meet with Schools Superintendent John Deasy next month and that he “is trying to set up a meeting with the CEPS people and try to work something out.

“I don’t think (the charter amendment) is the answer,” Katz said.

Sponsors of the measure contend the City can afford to give the district the $6 million a year required by the charter amendment. (Funding would be increased each year if the City’s revenues grow by at least 3.5 percent.)

“They’re facing trying financial times, but they’re not broke,” said Ralph Mechur, a member of CEPS. “We feel that they can find a way to do what we’re asking.

“They’re saying we won’t do anything without a new revenue source,” he said. “There are certainly some viable ideas out there” to provide the $6 million.

Mechur said CEPS has always been willing to pull the initiative if an agreement with the City can be reached.

“We’ve always been working on two fronts,” he said. “We’ve been preparing the initiative and talking to the City all along to convince them to create policy.