November 2020: SFLCV Supports Prop A, the 2020 Health and Recovery General Obligation Bond
/
Proposition A is the 2020 Health and Recovery Bond, a $487.5 million General Obligation Bond to fund mental health and homelessness facilities, parks and street repairs. The funds will be spent as follows:
$ 207 Million for facilities that provide treatment and supportive housing for the homeless/mentally ill
$ 239 Million for parks and recreational facilities
$ 41.5 Million for curb ramps, street resurfacing, street structures and the pedestrian right of way
As a General Obligation Bond, the City will borrow the $438.5 million, and then pay it back from property tax revenue. It is important to note that (in keeping with 2006’s Capital Plan) the City only issues new bonds as old bond debt is retired. Property tax rates stay the same and the net effect is neutral on San Francisco’s property owners.
This measure requires a 2/3 vote to pass and is being supported by Mayor Breed and all the Supervisors as well our State Assembly delegation and numerous other elected officials. It is opposed by the Republican and Libertarian parties.
The SFLCV believes that for the most part, general obligation bonds are reasonable to use for expensive capital projects, and San Francisco has proven itself responsible in repaying such bonds and overseeing the use of the funds generated.
Furthermore, this bond addresses critical needs at this critical moment. The need for both homeless and mentally ill supportive housing and treatment facilities is dramatic. The need for parks and recreational facility improvements would be evident even without the current pandemic, which makes our parks all the more critical. Additionally, much of the streetscape spending, such as curb ramps and pedestrian right of way, is completely reasonable and necessary.
Perhaps just as critically, the timing of this measure is important. This type of government infrastructure spending is an important tool in dealing with recessions and helping many San Franciscans cope with the financial fallout of great upheaval such as this pandemic. By funding “shovel-ready” projects across the City, this bond will inject much needed infusions of cash into the local economy and bring important services and quality of life enhancements to all San Franciscans.
The one concern we at the League have about this measure is the street resurfacing component. While we agree that street resurfacing is an important need, we don’t agree that it should be funded by a general obligation bond. Street resurfacing is a deferred maintenance item and the City should *not* be debt-spending to pay for things that should be covered by the general fund. This is essentially running up credit card debt to pay for everyday spending, such as groceries. Such costs should be budgeted and allocated from the general fund.
That being said, the street resurfacing component of this measure is relatively small and will nonetheless provide important economic stimulus. We believe that though this measure is not perfect, it is important, necessary and generally reasonable and will enhance the livability of San Francisco.
We urge you to vote YES on Proposition A.