In abstract
In Los Angeles County, the place greater than 75,000 individuals have nowhere to name house, voters will determine whether or not to tax themselves to assist get individuals off the road.
Los Angeles voters’ choice a couple of new gross sales tax subsequent month could have a major impact on the assets devoted to California’s largest homeless inhabitants: Both the county can be set to obtain about $1 billion yearly, or it can have till 2027 to discover a new funding stream.
Measure A would repeal an present quarter-cent gross sales tax and exchange it with a half-cent gross sales tax, barely growing what shoppers pay for the whole lot from garments to sporting gear. If it passes, it’s anticipated to boost greater than $1 billion a yr for shelters, housing and different providers in a county the place greater than 75,000 individuals have nowhere to name house. If the measure fails and nothing else replaces it, the prevailing tax that funds a lot of the county’s homeless providers will expire in 2027. Officers and repair suppliers fear that will intestine LA County’s homeless response system at a time when it’s most wanted.
“To not have those services at our disposal to address the crisis that we’re seeing on our streets would be an absolute travesty,” Los Angeles County Supervisor Lindsey Horvath stated.
Supporters of the measure embrace native nonprofits such because the Los Angeles-area branches of United Approach and Habitat for Humanity. As of late September, 49% of doubtless voters surveyed in a ballot co-sponsored by the LA Occasions stated they’d vote for Measure A — simply wanting the bulk the measure must go. One other 33% stated they’d vote no, and 17% remained undecided.
However with few apparent indicators of enchancment on the streets, even after seven years of taxes, some critics ponder whether placing extra money into present packages is the suitable method.
“We pour too (many) tax dollars into a system that is broken,” stated Lance Christensen, vice chairman of schooling coverage and authorities affairs for the California Coverage Middle, a conservative fiscal watchdog group. The group hasn’t taken an official place on Measure A.
What would Measure A do for homelessness in Los Angeles County?
Los Angeles County voters in 2017 handed a quarter-cent gross sales tax dubbed “Measure H.” That tax helped the county ramp up its battle in opposition to homelessness and right now helps fund lots of the space’s packages, together with Pathway House, which launched final yr to maneuver individuals out of encampments, into inns, and in the end into housing. This yr, it can make up a couple of third of the Los Angeles Homeless Providers Authority’s complete funds, stated Paul Rubenstein, deputy chief exterior relations officer for the authority.
In all, funds raised by the 2017 tax have helped transfer greater than 42,000 individuals into everlasting housing and 80,500 into non permanent housing, in line with the county’s Chief Govt Workplace.
If the unique tax expires in 2027 with out a alternative, and housing packages funded by that tax shut, the county’s Chief Govt Workplace estimates unsheltered homelessness may improve by 28%or almost 15,000 individuals.
Measure A would repeal and exchange that tax with one that’s bigger and would fund a greater diversity of assets. For instance, the prior tax paid for shelters and providers, however not for brand spanking new housing. If Measure A passes, cash additionally could be put aside to construct new inexpensive housing.
“Services alone don’t solve the problem,” Horvath stated. “We need both.”
Practically a 3rd of the cash raised by the brand new tax would go to the LA County Reasonably priced Housing Options Company, to be spent on new properties and providers aimed toward stopping individuals from going by means of eviction or foreclosures. Many of the relaxation could be spent on homeless providers.
“To not have those services at our disposal to address the crisis that we’re seeing on our streets would be an absolute travesty.”
Lindsey Horvath, Los Angeles County Supervisor
Measure A additionally would include some guardrails constructed into the spending course of. Two new oversight our bodies are tasked with setting particular objectives for packages that spend Measure A {dollars}. The primary is the Govt Committee, which incorporates two county supervisors, Los Angeles Mayor Karen Bass, Newsom homelessness advisor Hafsa Kaka, and officers from different cities across the county.
The second is the Management Desk, which incorporates service suppliers, individuals from the enterprise group, metropolis and county staffers and three individuals who have expertise being homeless themselves. The inspiration for each teams got here from Houston. A delegation of LA County leaders visited the Texas metropolis in 2022 and got here again wanting to copy the best way its metropolis, county, enterprise, religion and repair leaders work collectively, in line with Peter Laugharn, president and CEO of the nonprofit Conrad N. Hilton Basis, which led the journey.
Collectively, the 2 teams will set objectives for Measure A-funded packages, monitor their outcomes and doubtlessly reallocate funds away from underperforming initiatives.
“I think we’re going to come up with some very good stuff,” stated Laugharn, co-chair of the Management Desk.
Proponents hope these two oversight our bodies will add an additional layer of transparency and accountability at a time when homelessness spending on the state and native ranges is beneath intense scrutiny.
A scathing audit launched earlier this yr discovered California fails to trace each how a lot it spends on homeless providers, and whether or not that spending is efficient. And the Los Angeles Homeless Providers Authority (one of many major companies that distributes homeless funding in Los Angeles County) is presently being audited as a part of a authorized settlement between advocates for the rights of unhoused residents and town and county of LA. A federal decide overseeing that settlement not too long ago blasted the Los Angeles Homeless Providers Authority for failing to make information of its spending obtainable, in line with LAist.
“We pour too (many) tax dollars into a system that is broken.”
Lance Christensen, vice chairman, schooling coverage and authorities affairs, California Coverage Middle
Critics of Measure A aren’t satisfied the brand new oversight our bodies will assist the county spend the tax {dollars} extra properly.
“This is too much administration. Too much bureaucracy,” stated Susan Shelley, spokesperson for the Howard Jarvis Taxpayers Affiliation, which wrote the official assertion in opposition to Measure A that may seem on voters’ ballots.
However the affiliation’s major grievance is even less complicated: A tax improve just isn’t the best way to fund the county’s battle in opposition to homelessness.
Los Angeles County already has a number of the highest gross sales tax charges in California, with some cities above 10%.
“This is very harsh on people,” Shelley stated, “especially with inflation pushing prices up.”
