South Gate families know the math of a tight month. Rent or the mortgage comes first. Groceries and medicines come next. Whatever remains goes to the lights, the phone, cable television, streaming services, gasoline, and maybe a little entertainment.
Measure SG asks these same families to pay South Gate politicians 8 percent more on nearly every bill they pay, forever. Voters should say no.
Measure SG imposes an 8 percent utility users tax on electricity, natural gas, water, telephone service, cable, satellite, and internet-based calling. The city expects the tax to cost residents roughly $10.4 million a year, and the tax runs “until ended by voters.” No sunset. No expiration date. No finish line.
The ballot label calls Measure SG a “fiscal emergency” measure. Emergencies end. Measure SG never does.
The most troubling part of the tax measure hides in plain sight. For the first time ever, South Gate would tax the subscription services families use every day: Netflix, Disney+, Spotify, and more. Every one of those services would cost 8 percent more per month, every month, forever. A household with four subscriptions would pay the tax four times over. City Hall has found a way to tax residents for sitting on the couch.
Many South Gate families cut the cable cord years ago to save money. Measure SG follows them to their streaming services and takes a cut there, too.
Add it all up, and unless Measure SG is defeated, the average South Gate household will pay about $600 more each year. The U.S. Census Bureau reports that South Gate’s median household income at $74,571. For working families at that level, $600 is real money, not a rounding error.
Compare that average household to the people who would spend the new revenue. According to South Gate’s payroll data, nearly one in four city employees already earn more than $100,000 a year. At least 25 take home more than $200,000 – nearly triple the typical South Gate household’s earnings.
Nobody begrudges a fair wage for public service. The real question is who pays for the raises. Measure SG answers that question plainly: the average South Gate family living on $74,571.
Meanwhile, city spending continues to climb. South Gate’s general fund budget rose from $65.9 million in 2022-23 to roughly $78 million in 2025-26, an increase of about $12 million, or 18 percent, over three years. This was more than the city’s revenue could support, so City Hall dipped into reserves to cover the gap. Now, the City Council wants residents to cover the difference permanently.
South Gate does not have a revenue problem. Its politicians have a spending problem, and a permanent tax would only reward that problem.
Supporters promise street repairs, crossing guards, parks, and police. Read the fine print. Measure SG is a general tax. Every dollar flows into the city’s general fund, where the politicians can spend it however they choose, this year or 20 years from now.
South Gate voters have heard this pitch before. They were told Measure P would help fund essential city services. Now, rather than demonstrating that existing revenues are being managed responsibly, City Hall wants taxpayers to lock in another permanent tax increase. If the City’s finances remain strained, voters deserve answers before they are asked to pay more.
A better path exists. Rein in payroll growth before reaching into residents’ pockets. Publish a line-by-line accounting of Measure P dollars so residents can see what they already bought. If the need remains, return to voters with a plan that includes a sunset date and enforceable guarantees.
South Gate families balance their budgets every month without a permanent raise from anyone. South Gate’s politicians should be expected to do the same.
Protect your family’s paycheck. Demand accountability. Vote no on Measure SG.
Robert Gutierrez is president of the California Taxpayers Association