{"id":493393,"date":"2026-10-12T08:12:25","date_gmt":"2026-10-12T08:12:25","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/493393\/"},"modified":"2026-10-12T08:12:25","modified_gmt":"2026-10-12T08:12:25","slug":"berkeley-wants-to-double-soda-tax-as-questions-mount-over-millions-in-taxpayer-spending","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/493393\/","title":{"rendered":"Berkeley wants to double soda tax as questions mount over millions in taxpayer spending"},"content":{"rendered":"

Berkeley, the first U.S. city to introduce a tax on soda and sugary drinks<\/a> more than a decade ago, wants to double the rate as claims emerge about how the money collected is being spent.<\/p>\n

Voters are now being asked to double the 2014 tax \u2014 which is one cent per fluid ounce, or 12 cents for a can of Coke \u2014 despite questions being raised about how the tax money is spent and monitored<\/a>.<\/p>\n

The decision to increase the tax comes as businesses rage saying they\u2019re already struggling as basic city services go unmet and homeless encampments fester<\/a>. <\/p>\n

\t\t\t\t\t\t\tSign up for the California Morning Report newsletter\t\t\t\t\t\t<\/p>\n

\n\t\t\t\t\t\t\tThe biggest news, opinion and culture shaping California right now.\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n

Berkeley, the first US city to introduce a tax on soda and sugary drinks more than a decade ago, wants to double the rate. Getty Images<\/p>\n

A financial review by the California Post identified serious financial irregularities involving the Berkeley soda tax\u2019s top recipient, Health Black Families<\/a>, a nonprofit that has been awarded more than $2.2 million in taxpayer money since the tax went into effect.\u00a0<\/p>\n

Ashley Calder browses the soda section at a lcoal convenience store. Jon Putman for CA Post<\/p>\n

Wilhelmenia Wilson, CEO of Healthy Black Families Inc., filed reports with the IRS that are rife with errors. Instagram\/@wilhelmeniakwilson<\/p>\n

Department of Public Works workers walk along Harrison Street during a homeless encampment cleanup on Sept. 15. Stephen Lam\/San Francisco Chronicle via AP<\/p>\n

The decision to increase the tax comes as businesses rage saying they\u2019re already struggling as basic city services go unmet and homeless encampments fester. Nathan Weyland for CA Post<\/p>\n

While many of the programs Berkeley funds via the soda tax relate to healthy eating habits, cooking and gardening programs and dental care, other spending appears far more questionable.\u00a0 Jon Putman for CA Post<\/p>\n

The organization provides a number of community services targeting the African American community, including a program called \u201cThirsty for Change!\u201d as well as cooking seminars and tours of farmer\u2019s markets.<\/p>\n

But in filings with the IRS, Healthy Black Families\u2019 accounting records contain conflicting compensation figures, massive expenses that don\u2019t add up and hundreds of thousands of dollars in unexplained legal fees, raising questions about how carefully Berkeley officials are tracking the money it doles out.<\/p>\n

Gary Krausz, a partner at accounting firm Gursey Schneider LLP who reviewed the IRS records for The Post, said that Healthy Black Families\u2019 returns \u201cshow repeated failures in basic financial reporting.\u201d\u00a0<\/p>\n

A retired accounting professor who separately reviewed Healthy Black Families\u2019 records called the filings \u201cincompetent.\u201d<\/p>\n

Healthy Black Families\u00a0listed more than $300,000 in miscellaneous expenses in 2024 \u2014 roughly a third of total spending \u2014 without the required itemization.<\/p>\n

In 2023, the nonprofit had almost $233,000 in unexplained expenses.<\/p>\n

\u201cExpense allocations do not add up; officer compensation is reported inconsistently and changes in net assets do not reconcile,\u201d Krausz told The Post.<\/p>\n

Wilson oversees a nonprofit that was awarded $2.2 million in soda tax revenue. Instagram\/@wilhelmeniakwilson<\/p>\n

From 2021 through 2024, the organization reported no independent voting board members, no tax-return review and no written conflict-of-interest, whistleblower or document-retention policies, Krausz said.<\/p>\n

\u201cThe governance disclosures are troubling,\u201d he added.<\/p>\n

Healthy Black Families also reported $247,285 in legal expenses in 2021 and $170,187 in 2022 without explaining the underlying matters.<\/p>\n

The nonprofit\u2019s CEO, Wilhelmenia Wilson, who draws a salary of roughly $120,000, did not respond to requests for comment. <\/p>\n

In tax filings, her name and title were misspelled multiple times.<\/p>\n

Healthy Black Families\u2019 most recent accounting firm, New Leaf Accounting, emailed The Post saying it could not answer questions by press time, citing tax-filing deadlines and requesting more time to review records.<\/p>\n

Julian Ca\u00f1ete, president and CEO of the California Hispanic Chambers of Commerce, blasted the tax hike proposal. Facebook\/@julian.canete<\/p>\n

Berkeley officials \u2014 Mayor Adena Ishii, City Manager Paul Buddenhagen and members of the City Council \u2014 also did not respond to The Post\u2019s calls and emails containing questions regarding financial reviews, grant monitoring and concerns about how taxpayer money is being spent.<\/p>\n

While many of the programs Berkeley funds via the soda tax relate to healthy eating habits, cooking and gardening programs and dental care, other spending appears far more questionable.\u00a0<\/p>\n

Five grants totaling $245,000 went to a program to teach day laborers \u201clife skills,\u201d while taxpayers also funded two grants totaling nearly $125,000 for a project called \u201cArtists Against Soda.\u201d<\/p>\n

Mustafa Thotta, a manager at Middle East Market & Cafe who previously ran a 7-Eleven, said Berkeley\u2019s taxes have gotten out of control while street conditions, homelessness and crime remain problems.<\/p>\n

\u201cEach penny matters,\u201d he said.<\/p>\n

While studies have linked soda taxes to lower sugary-drink sales and some improvements in children\u2019s weight, concrete findings on health benefits have been mixed.\u00a0 Jonathan Alcorn for CA Post<\/p>\n

\u201cPeople know about their health nowadays \u2014 everybody knows what to drink, what not to drink, because of all the social media. They know everything, so it\u2019s up to them.\u201d<\/p>\n

Julian Ca\u00f1ete, president and CEO of the California Hispanic Chambers of Commerce, blasted the city\u2019s spending.<\/p>\n

\u201cIt is clear that this tax is ineffective and benefiting no one except the so-called nonprofits,\u201d he said. \u201cVoters should keep that in mind before doubling a tax for countless family-owned small businesses in Berkeley struggling to stay afloat.\u201d<\/p>\n

Berkeley\u2019s pioneering tax kicked open the door to similar levies in Oakland, San Francisco, Philadelphia and Seattle \u2014 but promises of healthier communities have been followed by fights over where the money goes.<\/p>\n

Xavier Morales, of the Praxis Project, defended the soda tax and nonprofits that have received revenue. East Bay Community Foundation<\/p>\n

In Oakland, soda-tax advisers accused officials of using the revenue to backfill city services rather than directing more money to community health programs. <\/p>\n

A 2023 analysis by the think tank SPUR<\/a> found that both Oakland and San Francisco treated the revenue as general operating funds rather than reserving it for efforts to counter the harms of sugary drinks.<\/p>\n

While studies have linked soda taxes to lower sugary-drink sales and some improvements in children\u2019s weight, concrete findings on health benefits have been mixed.\u00a0<\/p>\n

A 2024 study<\/a> tracking nearly 69,000 California adults with prediabetes found no significant reduction in new diabetes cases during four years after the taxes took effect. A separate study<\/a> of roughly one million adults found no significant overall improvement in body mass index across four taxed California cities, although Berkeley and some demographic groups showed modest reductions.<\/p>\n

Xavier Morales, executive director of the Praxis Project and a longtime member of Berkeley\u2019s soda-tax advisory panel,<\/a> cited research showing a recent drop in Berkeley children\u2019s body mass index while defending community programs.<\/p>\n

\u201cWe\u2019ve been able to use these funds in the way that we promised the voters,\u201d he said.<\/p>\n

Asked about spending concerns, he said: \u201cI don\u2019t see any of that kind of waste.\u201d<\/p>\n

Ashley Calder buys a soda. Jon Putman for CA Post<\/p>\n

When presented with Healthy Black Families\u2019 accounting discrepancies, Morales said: \u201cEverything you just described to me, I have no knowledge of.\u201d<\/p>\n

Morales said grantees submit reports, make presentations and host events for commissioners to attend, and lauded Healthy Black Families\u2019 work.<\/p>\n

\u201cI do know that they are doing great programming,\u201d he said.<\/p>\n

The American Beverage Association, which fought the original tax in 2014, issued a statement to The Post slamming the current effort to double the tax.<\/p>\n

\u201cIncreasing taxes on groceries when household budgets are already stretched thin hurts working families, small businesses and their employees,\u201d officials said. \u201cStudies have consistently shown that these taxes have not meaningfully delivered on reducing consumption or obesity, and disproportionately burden those who can least afford it.\u201d<\/p>\n

Berkeley voters have until Nov. 3 to decide on Measure AA, which would replace the penny-per-ounce general tax with a 2-cent special tax dedicated to health, nutrition and water access.<\/p>\n

Funding from the proposed tax increase would require grant disclosures, performance requirements, audit rights and provisions to recover funds \u2014 safeguards the city would have to enforce.<\/p>\n

Download The California Post App, follow us on social, and subscribe to our newsletters <\/p>\n

California Post News: Facebook<\/a>, Instagram<\/a>, TikTok<\/a>, X<\/a>, YouTube<\/a>, WhatsApp<\/a>, LinkedIn<\/a>
California Post Sports Facebook<\/a>, Instagram<\/a>, TikTok<\/a>, YouTube<\/a>, X<\/a>
California Post Opinion<\/a>
California Post Newsletters: Sign up here!<\/a>
California Post App: Download here!<\/a>
Home delivery: Sign up here!<\/a>
<\/a>Page Six Hollywood: Sign up here!<\/a><\/p>\n

\t\t\t\t\t\t