Measure A, a proposition that seeks to increase the Los Angeles sales tax by half a cent, is slated for a vote on the upcoming March 5 ballot. The increased sales tax seeks to generate somewhere between $208 million and $215 million.

Following the passage of Proposition 30 in the November General Election, which raised the Los Angeles sales tax to 9 percent, passage of Measure A would result in the rise of the sales tax to 9.5 percent.

The tax proposal is intended to cover the city’s projected budget deficit of $216 million dollars by July 2013, assuring that city services such as fire and police staffing, gang-prevention programs, after-school programs, graffiti-removal programs, and other municipal services would not be cut from the city budget.

Proponents of the measure argue that the costs the sales tax would impose on the tax payer is minimal, stating that the increased sales tax would cost the average tax payer less than 10 cents a day.

In addition, Measure A proponents argued that is the sales tax were to fail, the city would be forced to cut 500 police officer jobs, thereby putting the city in increased danger of violence.

With 72 percent of the city’s budget going to public safety services, including police and fire, many people representing the city police and fire services have publicly endorsed Measure A. Chief of Police Charlie Beck has come out in support of the measure, as has Fire Chief Brian Cummings and United Firefighters of Los Angeles City President Frank Lima.

Opponents of Measure A have argued that an increase in the city’s sales tax will have a disproportionate effect on middle and lower income individuals. Those against Measure A also contend that a high sales tax is bad for working-class citizens and small businesses, and discourages business creation in the city.

City council members Eric Garcetti and Jan Perry, who are both running for mayor, as well as mayoral candidate Wendy Gruel have opposed Measure A, stating that the measure would disengage the business community.

One major opponent of Measure A, former Los Angeles Mayor Richard J. Riordan, has argued that this potential rise in the city’s sales tax is really meant to pay the rising costs of employee pensions. Riordian has instead championed pension reform in order to reduce costs.

Measure A proponents have rebutted the opposition by saying that the city of Los Angeles has already cut 5,000 positions, and has already passed pension reform in order to address the city’s budget issues.

The committee for Measure A has thus far raised $185,000, with major contributors including the NFL stadium developer Anschutz Entertainment Group, which has contributed $100,000 towards the measure. Other contributions included $25,000 from a real estate development company 3150 Wilshire, which is currently constructing two apartment towers in Koreatown, and $25,000 from Crew Knitwear, an L.A. based apparel company.

L.A. City Council President Herb Wesson, who is championing Measure A, has stated that he intends to raise $2 million in support of Measure A.

 

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