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LA WATCHDOG - Mayor Bass, the City Council, the City’s public sector unions, and many special interests, all of whom feast on our hard earned money, are working overtime to place measures on the ballot to increase our taxes and fatten their wallets. But nowhere is there any action for the reform of City’s budget process and finances that have resulted in chronic deficits, lunar cratered streets and broken sidewalks, neglected parks, lapses in public safety, and pervasive homelessness.
The City Council is considering placing the following three tax increases on the June primary ballot with proceeds deposited in the General Fund.
- The Transient Occupancy Tax would be increased from 14% to 16%, yielding an additional $50 million a year.
- The Parking Occupancy Tax would be bumped from 10% to 15%, producing an additional $70 million a year.
- The Olympic Ticket Tax of 6% on sale of tickets for events held within the City and is expected to result in a one time infusion of $100 million in 2018.
The Bureau of Street Lighting is also preparing a ballot measure for the City’s 500,000 property owners that would double the annual assessment to around $90 million a year.
The LAFD union, United Firefighters of Los Angeles City, is now collecting signatures to place a measure on the November ballot which, if approved by a majority of the voters, would increase our sales tax by one-half cent to 10¼%, raising an additional $500 million to supplement its existing budget of $900 million.
There is also a petition that has been submitted to the City Clerk to allow proponents to collect signatures to place a measure on the November ballot which, if approved by a majority of the votes, would increase our sales tax by one-half cent, to benefit the Department of Recreation and Parks by an additional $500 million. This is in addition to the charter mandated funding of $300 million.
There is also an effort by Climate Resolve to create the Los Angeles County Resilience District that would be funded by a quarter-cent increase in our sales tax that, if approved by a majority of the voters, would raise an estimated $600 million, of which $250 million would fall on City residents.
Consideration is being given to place a measure on the November ballot to authorize a bond measure of an undetermined amount to repair and maintain the City’s infrastructure. The City’s deferred maintenance budget is north of $7 billion.
[Note: There may be other measures to increase our taxes on the June and November ballots. This may include the County, a parcel tax to benefit LAUSD, and the State.]
Unfortunately, there are no efforts by City Council or the not so independent Charter Reform Commission to introduce real reforms to the City’s budget process and finances as suggested by the Neighborhood Budget Advocates (see below) and the City Controller. Underlying this failure is the City Council’s refusal to accept any oversight and the objections of the campaign funding bosses of the public sector unions who essentially own City Hall and can demand budget busting wage increases and oppose any reforms of the City’s dysfunctional civil service rules and regulations.
It is time for the City to eliminate the Structural Deficit that is expected to exceed $600 million over the next four years. It is time to place measures for real reform on the ballot. Until then, we Angelenos need to send a message to City Hall to clean up its act by voting NO on any tax increases.
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The Neighborhood Council Budget Advocates seven recommended reforms are an excellent beginning.
- The Four-Year General Fund Budget Outlook needs to be updated to reflect anticipated raises for City employees.
- Develop a two-year budget as recommended by the City Controller.
- Conduct open and transparent labor negotiations that require significant outreach to Angelenos before, during, and after the negotiations.
- Place a measure on the ballot that would prohibit the City from entering into any labor agreement that would create a current or future deficit. In the short term, pass an ordinance.
- Develop a long-term infrastructure plan to address deferred maintenance and future capital expenditures.
- Create a robust Reserve Fund that can only be used in declared emergencies, not to balance the budget as is the current procedure.
- Establish an Office of Transparency and Accountability to oversee the City’s budget and finances in real time as recommended by the LA 2020 Commission.
(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at [email protected].)
