August 25, 2010
CONTACT: Gayle Lynn Falkenthal, APR
619-997-2495 or firstname.lastname@example.org
Second Lawsuit Filed Challenging Proposition D
Prop D’s “fiscal impact analysis” alleged to be inaccurate, misleading, and not impartial
(San Diego) – The “fiscal impact analysis” prepared for Proposition D, the City of San Diego’s half-cent sales tax initiative is being challenged under California Elections Code §9295 in a lawsuit which alleges that the required analysis provided by the City of San Diego is “not impartial, not accurate, and misleads the public.”
"It's time the voters are told the truth about this measure," said plaintiff April Boling, former chairperson of the City Pension Reform Committee. “They should not rely on a flawed and misleading fiscal statement to help them cast a vote on this critically important decision.”
In the lawsuit prepared by attorney Bob Ottilie, plaintiff Boling alleges:
a) “The Fiscal Impact Statement for Proposition D” is false and misleading because it is “largely speculative puffery”;
b) The so-called “savings chart” upon which the Fiscal Impact Statement is based is flawed, false and misleading;
c) The ten “conditions” tied to implementation of the sales tax are independent actions unrelated to the sales tax and are matters the San Diego City Council could have addressed before placing Proposition D on the ballot;
d) Proposition D itself has ZERO fiscal impact. However, imposition of a sales tax could result in a potential cost to taxpayers of $510 million.
Named as defendants are Elizabeth S. Maland in her official capacity as City Clerk, City of San Diego; Deborah Seiler, in her official capacity as Registrar of Voters, San Diego County; and Does 1-10. Also named as a Real Party-In-Interest are the City of San Diego and Mayor Jerry Sanders, whose office was assigned responsibility for drafting the fiscal analysis.
The filing states “As drafted, if Prop D passes, it has no impact at all. It has no cost savings. It has no fiscal impact... While there may be some savings from implementation of some of these independent actions, if all ten of them are certified as being met, then the sales tax will kick in with an estimated cost to taxpayers of $102 million annually for five years. Thus, the proposition itself never results in cost savings; it could potentially result in a $510 million cost to taxpayers.”
A growing coalition of taxpayer advocates, civic leaders, business owners, and neighborhood activists is emerging to fight Prop D. For more information visit www.StopTheSalesTax.com.
NOTE: To access a copy of the complaint, please click here.