Measure A would increase Oakland sales tax if passed in Tuesday's special election

OAKLAND, Calif. (KGO) -- Much of the attention in Oakland's special election Tuesday has been on the mayor's race, but there are two other issues on the ballot: the race for District 2 city council member and Measure A.

"Sales tax is a last resort but that's where we are right now," Oakland Interim Mayor Kevin Jenkins said.

Mayor Jenkins was talking about Measure A, which would increase Oakland's sales tax from 10.25% to 10.75%. It could raise upwards of $30 million annually for a city facing a $140 million structural deficit.

"This is not an Oakland issue, this is a systemic issue," Jenkins said. "This is what is happening to cities after the pandemic. Receipts aren't coming in how they were at one point. So, this isn't an Oakland spending issue."

MORE: Polls open in historic Oakland special election, which will name city's 4th mayor since December

By the city's own accounting, it projects a 5-year deficit through 2028. Mayor Jenkins says if Measure A passes, it takes effect immediately and the money collected will be booked in this current budget, which he is preparing to present on May 1.

Those who support Measure A add that the increase will bring Oakland's sales more in line with other Bay Area cities.

Measure A money would be unrestricted, meaning it can be spent at the city's discretion, which is one of the concerns of those who oppose the measure.

"Frankly speaking, I understand what a lot of voters say, that they are opposed to it because they don't trust the city to spend their tax dollars wisely," says Oakland City Council Member Janani Ramachandran, who is chair of the Finance Committee.

Ramachandran supports Measure A, but she has been critical of past budget decisions such as tying the sale of the Oakland Coliseum to last year's budget cycle. She says this city council is already committed to making big spending cuts in the new biennial budget process - across all departments.

MORE: Oakland mayor: Barbara Lee, Loren Taylor make their final push ahead of special election

"You will see the committee trying to crack down on what some of these city departments are asking the city to dole out money for. And we are getting more and more critical, and this is a new era in Oakland politics," Ramachandra said.

Len Raphael, who is a Certified Public Accountant, ran for city council in November. He says he isn't against raising taxes. He is more concerned about how the money will be spent.

"Passing Measure A would be the equivalent of giving an alcoholic a bottle of good booze," Raphael said.

He argues for the past few budget cycles, city council ignored the warnings from city staff of the growing deficit, making decision based on political capital instead of sound economics. He adds that Measure A is also a regressive tax, meaning it'll hurt lower income voters the most.

"They spend a much higher percentage of their income on sales taxable items," suggests Raphael.

The polls are currently open through Tuesday.