Sales tax could go up by half a cent throughout L.A. County, but
only if officials can get voters’ approval.
A bill introduced by state senator Jack Scott, D-Pasadena, would
raise the maximum allowable sales tax for the county.
Scott introduced the bill to give county officials another way
to make up for large budget shortfalls in safety and health
programs.
It would raise the maximum sales tax from 8.25 to 8.75 percent,
and could raise $536 million per year.
Scott’s bill would not immediately go into effect, and it
would not let county supervisors raise taxes on their own. Instead,
the bill would let county supervisors add a tax-raising measure to
the 2004 primary or general election.
But a press aide for UCLA’s county supervisor said it is
“extremely doubtful” that county voters would pass
another tax increase.
“We’re heading to bankruptcy on a fast track,”
said Joel Bellman, press aide for county supervisor Zev
Yaroslavsky.
The county health department is facing a budget hole of close to
$700 million over the next few years and could get worse, he
said.
County officials could lose more money because of state cuts and
court decisions, even though it has been able to raise some
funds.
In the November election, voters provided $168 million for the
county health department by increasing property taxes.
Right now, it is unclear whether the sales tax increase will
even make it on the ballot.
L.A. county already charges the maximum allowable sales tax, and
the state legislature must pass Scott’s bill to raise this
limit.
The Senate gave its approval with a 23-13 vote Monday, but the
Assembly and the governor must also approve the bill.
This year Republicans have maintained a platform of resisting
tax increases at all costs, yet Scott’s bill circumvents
their opposition.
Because it does not raise taxes, it only takes a simple majority
to pass, allowing Democrats to win on a party line vote. So far no
Republican has supported Scott’s bill.
It also gets around the opposition of some tax lobbyists ““
such as the California Taxpayers Association ““ by not
mandating a tax increase without a ballot measure.
They would resist attempts by the county Board of Supervisors to
raise taxes on their own but not if the measure is placed on the
ballot, according to press aide Ron Roach.
“It’s a democracy,” Roach said. “If
people want to vote to tax themselves, they should be able to do
that.”
Even if the tax increase is approved, Bellman said it would be
too late to help with the county’s mounting financial
woes.
Last week, a judge prevented the county from eliminating 100
beds from L.A. County-USC hospital and closing Rancho Los Amigos
rehabilitation hospital because it would endanger public
health.
The county made the closures to save money, because it does not
have the funds to operate all the public hospitals.
Budget estimates were made assuming the closures would not be
challenged in court.
This leaves the county unable to save money and ““ unless
the tax increase is approved ““ unable to raise money either,
Bellman said.