If passed, Measure J would have brought more money to the City of Chico, but since it didn't the city is adjusting its budget.
Measure J would have brought down the phone tax rate from 5% to 4.5%, but it would have added cell phones which are not currently taxed.
The city says it would have brought in $930,000. Some voters in Chico thought the last thing they needed was a tax, but others thought it was a good idea.
"It seemed like it was a bad idea," says Susan Riggins, who voted no on Measure J. "It seemed to a be a bad idea to change the tax structure."
"The city clearly needs more revenue tax base. People are losing their land lines," says Charlie Fulton, who voted yes on Measure J. "I can see how they need to replenish it somehow since everyone has cell phones now after all."
Chico City Manager Brian Nakamura says the money would have paid for up to eight police officers or two-thirds of operating one fire station.
Nakamura says there could be cuts for fire and police.