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Smart Voter
Los Angeles County, CA March 5, 2013 Election
Proposition LA-A
Neighborhood Public Safety and City Services
Funding and Accountability Measure
City of Los Angeles

General Tax Measure - Majority Approval Required
UNOFFICIAL results as of March 6, 2:00 p.m.

Fail: 117820 / 44.8% Yes votes ...... 145049 / 55.2% No votes

See Also: Index of all Measures

Information shown below: Summary | Fiscal Impact | Impartial Analysis | Arguments |

To offset severe and repeated State cuts and provide funding for: 911 emergency response services; maintaining firefighter, paramedic, and police officer staffing levels; continuing community policing, senior services, after-school gang and drug prevention programs; repairing potholes and sidewalks; and other general municipal services; shall the City of Los Angeles enact a one-half cent transactions and use (generally referred to as sales) tax, with required independent audits, public review of expenditures, and all funds used locally?

Summary Prepared by Ballot Simplification Committee:
TITLE:
NEIGHBORHOOD PUBLIC SAFETY AND VITAL CITY SERVICES FUNDING AND ACCOUNTABILITY MEASURE

THE ISSUE:
Shall the City of Los Angeles enact a transactions and use tax (generally referred to as a sales tax) of one-half percent?

THE SITUATION:
Under state law, a sales tax of 7.5 percent is placed on nearly all retail purchases to generate revenue. The State keeps all revenue generated from 6.25 percent of this amount, with the rest of the revenue distributed to counties for transportation projects (0.25 percent), cities and counties (0.75 percent) and schools (0.25 percent).

State law allows local City and County governments to impose up to an additional 2 percent of local sales, transactions, and use taxes, and another 0.5 percent to fund Los Angeles County transportation projects, with the approval of the voters.

Under State law, the maximum sales tax allowable in Los Angeles County is 10 percent. The current sales tax in the City of Los Angeles is 9 percent. Current sales tax rates in California cities range from 7.5 percent to 10 percent.

THE PROPOSAL:
This measure would enact a transactions and usc tax of one-half percent to provide funding for a variety of City services, including police and fire emergency services, senior services, gang and drug-prevention programs, pothole and sidewalk repair, and others. All funds will be used to fund local City programs and services. Expenditures will be reviewed by a citizen's oversight and accountability committee, and will be subject to independent audit under existing law.

A YES VOTE MEANS:
You want to cnact a transactions and use tax (generally rcferrcd to as a sales tax) of one-hIM percent to providc funding for City services.

A NO VOTE MEANS:
You do not want to enact a transactions and usc tax (generally referred to as a sales tax) oronehalf percent to provide fun ding (or City services.

Fiscal Impact from
Miguel A. Santana,
City Administrative Officer:
This measure would increase the local retail transactions and use tax (commonly referred to as a "sales" tax) within the City of Los Angeles by a half-cent (0.5%). The revenue from this tax will be deposited in the City's General Fund and will not go to the State or County. This revenue may be used for any City services, including restoring fire and emergency services, maintaining police services, funding gang reduction efforts, and repairing streets and public infrastructure.

Currently, the sales tax rate in the City of Los Angeles is 9.00%, of which the City's share is 0.75%. If this measure is adopted, the total sales tax rate will increase to 9.50%, and the City's share will increase to 1.25%. The estimated General Fund revenue will be approximately $211 million annually, of which approximately $106 million will be received in its first year of implementation in Fiscal Year 2013-14.

Impartial Analysis from
Gerry F. Miller
Chief Legislative Analyst
California State law, known as the Bradley-Burns Unifonn Local Sales and Use Tax Law, establishes a State Sales Tax of 7.5 percent on nearly all retail purchases, with certain exceptions. Of this tax levy, 6.25 percent is for the State, 0.25 percent is for county transportation projects, 0.75 percent is for cities and counties, and, pursuant to recently approved Proposition 30, 0.25 percent will be levied for schools beginning January 1,2013.

The Law authorizes local government, with voter approval, to levy up to an additional 2 percent in local sales, transactions, and use taxes. Currently, the County of Los Angeles has utilized 1 percent of the 2 percent cap for transportation projects. In addition, the California Legislature authorized Los Angeles County, with voter approval, to levy a 0.5 percent sales tax, specifically to fund Los Angeles County transportation projects.

Based on State law, the maximum possible sales and use tax rate in Los Angeles County is 10 percent. Tax rates in California cities currently range from 7.5 percent to 10 percent. The City of Los Angeles, along with 280 other California cities, currently has a 9 percent sales tax ratc. If approved by the voters, the City's tax rate would rise to 9.5 percent, which would be on par with the tax rates in nearby cities such as Santa Monica, Inglewood, and El Monte.

Based on the 2012-13 Adopted Budget, the City of Los Angeles expects to receive approximately $3 .78 billion in unrestricted tax revenues to pay for city services, of which $333 million is anticipated from sales tax revenues. More than 72 percent of all unrestricted revenues will be used to pay for public safety, including police (55 percent) and fire serviccs (17 percent), leaving roughly 28 percent to pay for other city services, such as after-school and gangprevention programs, senior services, pothole and sidewalk repair, tree trimming and streetsweeping.

To reduce costs and balance the City budget, since 2009, the City has eliminated nearly 5,000 positions, consolidated multiple departments, increased current employees' share of their pension and benefit costs, and established new and reduced pension benefit plans for new civilian and sworn employees. Total City staffmg is now the lowest it has been since 1989. With projected shortfalls in the foreseeable future, further service impacts are likely in order to maintain a balanced budget.

This ballot measure would enact a transactions and use tax (generally referred to as a sales tax) of 0.5 percent to generate revenue to maintain and enhance City services, including police, fire, and paramedic services, and all other municipal services. All funds will be used for local City programs and services. These tax revenues and expenditures will be reviewed publicly by a Citizens Oversight and Accountability Committee chaired by the City Controller, and will be subject to independent audit to ensure appropriate use.

This ordinance will become effective if approved by a majority of voters.

  Official Information

City of Los Angeles
City Channel 35

Argument in Favor

Argument Against
Easy Voter Guide from League of Women Voters of Los Angeles

Now:

People who live or shop in the city of Los Angeles pay a sales tax of 9% on most things that they buy. Almost all of the money from this tax goes to the state of California and to the county of Los Angeles. The city receives a small amount from the state: less than 1%. Many cities in California charge an additional city sales tax, but the city of Los Angeles does not.

If Proposition A passes:

The city of Los Angeles would charge an additional ½% sales tax, so that people who live or shop in the city would pay a sales tax of 9½%. The money from this tax would go into the city's General Fund, which is used to pay for many city services.

Effect on the city budget:

The city's General Fund would receive about $106 million in sales tax revenues in 2013 and about $211 million in each year after this.

People for Proposition A say:
  • The city has a budget deficit of more than $200 million. The money from this tax will prevent severe cuts to the fire department, the police department, and paramedic services.
  • Everyone will pay their fair share, including businesses, tourists, and people from nearby cities who shop in Los Angeles.

People against Proposition A say:
  • This tax will not solve the city's budget problems. Instead, the city needs to find ways to cut spending.
  • This tax will hit working people and businesses the hardest, and will encourage people to shop in nearby cities that have lower taxes.
More Resource Information

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Arguments For Proposition LA-A Arguments Against Proposition LA-A
Vote Yes on Proposition A:
the Safe Neighborhoods and Vital City Services Protection Measure.

Over the last five years, Sacramento has taken over one billion dollars from the City of Los Angeles money that goes toward vital City services, including fire, police and 911 emergency services. In addition, money has been taken that would maintain youth gang prevention and after school programs, graffiti removal and fix potholes and sidewalks.

Despite a significant reduction in the City's workforce and reforming the pension system, Los Angeles faces a budget deficit of more than $200 million that further threatens our most essential services. Additional cuts to fire, police and paramedic services are not an option if we want to maintain the current level of protection for our neighborhoods and families.

Proposition A will help restore a severely understaffed fire department, help maintain police, and paramedic staffing levels and ensure fast and effective 911 response services to make sure residents receive quality emergency medical care and get to a hospital quickly. Without Proposition A's additional revenue, a minimum of 500 police officers that patrol our neighborhoods will be laid off and our historically low crime rates may be in danger.

Proposition A also ensures that everyone pays their fair share, including businesses and the millions of tourists and people from nearby cities who visit Los Angeles every year to shop, eat and attend events.

Proposition A will cost the average Los Angeles resident less than 10 cents a day, and by law the tax cannot be applied to food and medicine.

Proposition A requires annual independent audits, public review of expenditures and most importantly, these funds cannot be taken away by the state and will only be used to maintain vital City of Los Angeles services.

We urge you to protect our firefighters, police officers, paramedics and vital City services -Vote YES on Proposition A.

Charlie Beck
Chief of Police

Marķa Elena Durazo
Executive Secretary-Treasurer L.A. County Federation of Labor

Bill Rosendahl
Los Angeles City Councilmember

Richard H. Close
Sherman Oaks Homeowners' Association

Frank Lima
President, United Firefighters of Los Angeles City

Brian Cummings
Fire Chief

Rick Tuttle
Los Angeles City Councilmember (Ret.)

Joe Buscaino
Los Angeles City Councilmember

Andre Quintero
Los Angeles Neighborhood Prosecutor

Rebuttal to Arguments For
Do you trust City Hall with your money?

That's the question you must ask yourself when deciding bow to vote on the regressive $200 million sales tax increase sought by city officials.

Raising our sales tax{ to a crippling 9.5% will drive businesses, jobs, and consumers out of Los Angeles. It's nothing but a temporary bailout to cover up City Hall's failure to deal with soaring payroll costs - another $750 million over the next four years!

Remember when they tripled our trash fee to keep 10,000 cops on the street? Where did all that money go? Now they are threatening to fire 500 officers if we don't approve this raid on our wallets.

Los Angeles is heading over a fiscal cliff because the City Council failed to deal with the $11.5 billion pension liability and the looming $1.1 billion budget deficit.

Don't reward bad behavior. Enough is enough. NO on A!

Jack Humphreville
Director / EVP
http://WWW.RECYClER.COM / Recycler Classifieds

David W. Fleming
Valley Civic Leader

Kenneth S. Alpern, M.D.
Boardmember, Mar Vista Community Council

James O'Sullivan
President, Miracle Mile Residential Assocation

Richard J. Riordan
Former Mayor
City of Los Angeles

Glenn Burley
Neighborhood Council Board Member

Mark Seigel
President, Sunland-Tujunga Neighborhood Council

Dominick W. Rubelcava
Attorney at Law

DEMAND REAL BUDGET REFORM.
VOTE NO ON THE REGRESSIVE SALES TAX

City Hall has failed year after year to control runaway spending. Now it wants us to cover up its addiction with a permanent half cent increase in our sales tax, jacking it up to a crippling 9.5%, one of the highest in the nation.

This sales tax. hike is bad for LA, bad for hard working Angelenos, bad for job-creating businesses, and bad for the City's reputation. It's a regressive tax that will have a disproportionate impact on working and middle class Angelenos, and encourage consumers to shop in nearby lower taxed cities.

Worst of all, it doesn't solve the budget crisis, and will make finding real solutions so much more difficult in the future while delaying desperately needed repairs to our streets, sidewalks, and other infrastructure.

For example, the $215 million in new revenue will not even cover next year's $300 million increase in labor costs or the $768 million escalation over the next four years.

Our elected officials continue to mislead us about the City's finances. The steps they have taken in four years of economic challenge have been grossly inadequate.

Paying off workers to retire early added to the massive unfunded pension liability. Transferring workers to the DWP contributed to soaring water and power rates. Increased employee pension contributions are dwarfed by the salary increases of 25% since 2005.

The Mayor's pension "reform" plan saves only about 1% of the $1.3 billion of the city's pension contribution in 2017. And the City Council contemptuously ignored Mayor Riordan's call for real pension reform.

It's time for City Hall to stop "kicking the can down the road" to insolvency.

It's time for real REFORM. Don't reward bad behavior. Vote NO on Proposition A.

Jack Humphreville
Director / EVP
http://WWW.RECYClER.COM / Recycler Classifieds

Richard J. Riordan
Former Mayor
City of Los Angeles

Bernard Parks
Council Member
City of Los Angeles

Cary Brazeman
Candidate for City Controller
City of Los Angeles

Stuart Waldman
President
Valley Industry & Commerce Association

Jan Perry
Council Member
City of Los Angeles

Kevin James Candidate for Mayor
City of Los Angeles

Patricia Donaldson
Chair
South Bay Association of Chambers of Commerce

Ron Kaye
RonKayLA.com
Writer

Rebuttal to Arguments Against
Proposition A opponents want los Angeles to go over a fiscal cliff, causing:

  • Longer response times for 911 calls;
  • Higher crime rates with over 500 fewer police on patrol;
  • More potholes and broken sidewalks;
  • Cancelled afterschool programs.

Many of these opponents supported the programs that caused this crisis. Now they won't take responsibility for their own record. Instead, they are attempting to cut vital public safety services to fix their mistakes.

Sales tax is the only tax paid by businesses, tourists, residents, citizens and non-citizens. There are no loopholes.

Proposition A will cost the average Los Angeles resident about $30 dollars per YEAR, less than a dime a day. State law prohibits this tax from applying to medicine, food and gasoline.

Los Angeles has also taken the first steps to fixing our budget - cutting 5,000 positions, reversing previous pension giveaways and for the first time approving real pension reform.

Vote YES on Proposition A.

Charlie Beck
Chief of Police

Marķa Elena Durazo
Executive Secretary-Treasurer L.A. County Federation of Labor

...

Bill Rosendahl
Los Angeles City Councilmember

Andre Quintero
Los Angeles Neighborhood Prosecutor

Brian Cummings
Fire Chief

Richard H. Close
Sherman Oaks Homeowners' Association

Frank Lima
President, United Firefighters of Los Angeles City

Joe Buscaino
Los Angeles City Councilmember


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Created: May 2, 2013 14:24 PDT
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