K-12 Tax & Spending Climate: Public unions and housing mandates sock a San Francisco Bay area town
Portola Valley officials last week raised alarms about dwindling cash reserves owing to rising expenses tied to a new sheriff’s contract and the state’s affordable housing mandate. The town of about 4,500 has about $1.6 million in general reserves, nearly all of which is committed to paying retiree benefits.
Like many small towns, Portola Valley relies on its adjoining county sheriff’s office to provide public safety. The San Mateo County sheriff’s union negotiated a rich new labor agreement in 2022 whose costs are being passed on to localities. Portola Valley’s sheriff’s payments are set to increase to $2.1 million next year from about $1 million in 2021.
Other employment costs are also soaring as the town is paying millions for consultants to comply with California’s affordable housing mandate. Homes in the town are worth $3.8 million on average. The state has threatened to withhold federal and state grants if Portola doesn’t rezone land to accommodate multi-family housing. This, by the way, is the essence of Kamala Harris’s housing plan: Leverage taxpayers dollars to compel states and localities to build more low-income housing.
