The San Luis Obispo Chamber of Commerce is in full support of the citizen’s initiative for the Better Roads for All SLO County ballot measure. Despite our traditional tendency to advocate for lower taxes, we believe this half-cent sales tax measure represents a critical investment in our business community’s future by tapping into funds not previously available to our community. We hope you will dive deep into the details of this issue to best inform your position.
Supporting a sale tax ballot is not a position we’ve taken lightly. The Chamber has always championed fiscal responsibility and opposed unnecessary tax increases. However, after careful analysis, we’ve concluded that the SLO County Self-Help Sales Tax for Transportation is fundamentally different from typical tax proposals. It’s a strategic investment that will directly strengthen our local economy and business climate, and this particular effort has a unique and impact return on our local investment dollars.
How does the current infrastructure crisis impact you?
San Luis Obispo County’s transportation funding has plummeted by more than 50% since 2018, dropping from $7.8 million to approximately $3.6 million today. This dramatic decline means our roads, highways, mass transit and transportation infrastructure are deteriorating faster than we can maintain them. Poor road conditions increase vehicle maintenance costs for your employees and customers, create liability concerns, impede deliveries and make our county less attractive to potential businesses and tourists.
When the similar ballot measure narrowly failed in 2016, our county lost access to hundreds of millions of dollars in transportation funding that went to neighboring counties instead. Over the past decade, San Luis Obispo County has missed out on an estimated $700 million in infrastructure improvements. Our businesses have paid the price through delayed projects, increased congestion, reduced accessibility and a worse commuting experience for locals and visitors.
How will this measure unlock far greater investment beyond the tax itself?
The half-cent sales tax will generate approximately $35 million annually in local funding. However, the real economic impact comes from what these local dollars unlock. Many state and federal transportation grants require local matching funds, which is money we currently don’t have. By establishing a stable local funding source, Better Roads for All SLO County positions our county to compete for and secure hundreds of millions of additional dollars in state and federal grants that currently bypass our region.
This is leveraged investment at its best. Every local dollar we contribute can multiply into several dollars of outside funding, meaning we get far more transportation improvement than we pay for. This is sound fiscal strategy and smart economic development.
What are the benefits to the business community if this measure passes?
Better Roads for All SLO County will generate millions of dollars in construction, engineering and maintenance contracts, and along the way will create well-paying local jobs and support our business members. Improved roads and reduced congestion mean lower operating costs for businesses that rely on transportation and delivery. Enhanced infrastructure makes our county more competitive for business recruitment and expansion. Better transit options, including services for seniors and people with disabilities, expand the available workforce and customer base.
The measure includes strong accountability provisions, including restrictions preventing funds from being diverted to other uses, independent annual audits, public reporting requirements and a citizens’ oversight committee. Every dollar raised stays in San Luis Obispo County and is invested based on local priorities determined here, not in Sacramento.
When state and federal grants begin to flow into SLO County to fund our local transportation infrastructure, local businesses and their employees will thrive and have significantly more revenue/earnings to spend in their local community. Job growth funded by Better Roads for All SLO County is focused on private sector jobs, not government jobs. Only 1% of funds generated will assist government with accounting for, tracking and delivering on the guarantees baked into the ballot language. Better Roads for All SLO County will funnel funds not currently available directly into our local economy.
What would the revenue distribution look like?
55% of revenues would go directly to cities and unincorporated areas for local road repairs and safety improvements based on local priorities. 40% would support larger regional projects that would benefit the entire county based on a county-wide assessment. 4% would be dedicated to improving mobility for seniors, people with disabilities, veterans and others with special transportation needs, expanding access to businesses and services. Funds would be distributed proportionally and equitably, so every community receives its fair share. The remaining 1% supports oversight and accountability coordinated by existing government staff.
How is the tax burden shared?
Essential purchases such as groceries, healthcare and housing remain exempt from sales tax. The approximately 7.5 million visitors to our county annually will pay their fair share when they purchase goods and services here, reducing the burden on local residents and businesses. This means tourists, who use our roads and infrastructure extensively, would help fund the improvements they benefit from.
What’s the cost of inaction?
Without this measure, our transportation infrastructure will continue to deteriorate, costs for emergency repairs will escalate, our county will continue losing out on state and federal funding opportunities and businesses will face increasing challenges from poor road conditions and inadequate infrastructure. The question isn’t whether we’ll pay for transportation improvements, rather it’s whether we’ll pay less now through strategic investment or far more later through emergency repairs and lost economic opportunity.
Competitive Positioning for SLO County
Our neighboring counties have self-help transportation measures. They’re capturing grant funding and making infrastructure improvements that make them more competitive for business development and tourism. Without Better Roads for All SLO County, we will continue falling behind. This isn’t just about roads, it’s about our county’s economic future and our ability to compete regionally.
We recognize that any tax increase deserves scrutiny. However, after thorough analysis, the SLO Chamber’s leadership has concluded that Better Roads for All SLO County represents exactly the kind of strategic, locally controlled investment that will strengthen our business environment and economic competitiveness.
This measure gives us local control over our transportation destiny rather than leaving us dependent on declining state funding and vulnerable to Sacramento’s budget priorities. It positions us to leverage outside dollars rather than leaving money on the table. It addresses real infrastructure deficits that are costing our businesses money every day.
The SLO Chamber supports Better Roads for All SLO County, not despite our commitment to fiscal responsibility, but because of it. Sometimes the most fiscally responsible choice is strategic investment in the foundations of economic prosperity. We believe this is one of those times.
We encourage you to review the details of the initiative, ask questions, and reach your own informed decision. We’re confident that when you examine the full picture, including the infrastructure crisis we face, the funding we’ve already lost, the leverage opportunity this creates and the direct benefits to our business community, you’ll better understand why the Chamber believes this measure deserves support.