The California Contract Cities Association (CCCA) has formally come out in opposition to a proposed countywide sales tax measure, citing concerns about affordability impacts on residents, fiscal strain on cities, and the structure and long-term implications of the tax.
“Members of the Board of Supervisors,
California Contract Cities Association (CCCA) writes to respectfully express opposition to Supervisor Holly J. Mitchell’s recent motion calling for a temporary ½ cent general sales tax measure to be included on the June primary ballot. The revenue generated from the tax measure would go towards health and safety net services that are at risk of disappearing due to H.R.1 funding cuts.
CCCA recognizes the severe fiscal impacts of H.R.1 on L.A. County Department of Health Services’ (DHS) budget, and after hearing from county leaders at last week’s Health and Mental Health Services Cluster Meeting, we share their concerns about a future, county-wide health services crisis caused by the bill’s passage. Protecting the health, safety, and security of our member cities’ residents is central to CCCA’s mission and underpins our advocacy at the state and local levels. Therefore, we feel it is important to acknowledge the knock-on effect this measure would have on the significant financial challenges both residents and cities are already experiencing countywide.
We are concerned this measure would disproportionately burden the very residents the County seeks to protect, who are facing historic affordability pressures on housing, food, fuel, utilities, and childcare costs. This half-cent countywide sales tax increase would push the combined sales tax rates in some cities to over 11 percent, further straining household budgets. At the same time, cities are confronting their own structural budget challenges and are deeply worried about how to best address fiscal issues without compounding economic pressure on residents least able to absorb it. This is particularly distressing in the context of LA County seeking a legislative exemption that would allow this sales tax measure to bypass the state cap on local sales taxes. If such legislation passed, struggling cities that are already at or near the cap would be left overlooked with limited future fiscal options to support much-needed local services in their communities.
CCCA also feels there are significant flaws in the sales tax measure’s revenue model as outlined in the motion. First, the motion states that the funds generated by the measure would go into L.A. County’s General Fund, which technically classifies the dollars as unrestricted operating funds in future years. CCCA feels strongly that if a measure of this kind is established, it should be structured as a special tax to ensure there are guardrails on the revenue that is going towards protecting residents’ health needs. Voters and taxpayers deserve complete transparency, not creative structuring, when asked to shoulder additional tax burdens. Second, we are concerned about the temporary nature of the measure. While the motion states the measure will only be effective from October 1, 2026, to October 1, 2031, other temporary L.A. County measures have recently been extended (i.e. Measure H evolving into Measure A in 2024). Now residents reasonably question whether temporary taxes are, in practice, permanent. Further, if this general sales tax measure were to be extended, it would have serious, long-term implications on cities’ ability to generate needed revenue.
With these concerns in mind, CCCA respectfully requests that the Board reconsiders this approach and enters an open dialogue with cities about how we can work together to address the fiscal challenges of today without overburdening one another. Solutions must be equitable, transparent, and mindful of the cumulative impact on residents already struggling with affordability. Further, we welcome conversations about advancing a statewide tax measure that could go towards supporting county-level health and safety net services in Los Angeles and beyond, as we recognize that H.R 1 funding cuts are affecting local governments across California.
We appreciate your consideration of our position on the motion.
Yours in service, Marcel Rodarte
Executive Director California Contract Cities Association.”