The Los Angeles County Board of Supervisors on Tuesday placed on the June ballot a proposed temporary half-cent sales tax increase to fund the county’s struggling health care system, which has been hit hard by federal funding cuts.
If passed by voters, the increase would bring the county’s tax rate to 10.25%. It is projected to raise one billion dollars annually over five years.
The tax would expire in five years.
The background
County health officials said Tuesday that President Donald Trump’s “One Big Beautiful Bill” will cut $2.4 billion from county health programs over three years, threatening closure of some of the county’s 24 clinics and an array of public health programs.
Supervisor Holly Mitchell, who co-authored the proposal, said the county faced a “federally imposed crisis” that in the absence of state action, could only be addressed by raising taxes on county residents.
“This motion gives the voters a choice, given the stark realities that our county is facing,” Mitchell said.
The vote was 4-1, with Supervisor Kathryn Barger the lone dissenter. Barger is the board’s sole Republican. She worried shoppers would go to Orange County, where the sales tax is 7.75%. She also said the state should take the lead on addressing federal funding cuts to county health care systems.
Public reaction
More than 700 people showed up Tuesday to speak out on the proposal. Health care providers pleaded with the board to place the measure on the ballot, saying federal funding cuts to Medi-Cal had hit them hard.
“This is a crisis,” said Louise McCarthy, president and CEO of the Community Clinic Association of L.A. County. “Medi-Cal accounts for over half of clinic funding. So these changes will lead to clinic closures, longer wait times, overcrowded E.R.’s and higher costs for the county.”
Others opposed any plan that would increase the sales tax.
“Our city is opposed to the adding of this regressive tax to overtaxed residents and making it even more difficult for cities, especially small cities, to pay for the increasing cost of basic resident services,” said Rolling Hills Mayor Bea Dieringer. “The county needs to tighten its belt further.”
Details on the proposed plan
Under the plan, up to 47% of revenue generated will be used by the Department of Health Services to fund nonprofit health care providers to furnish no-cost or reduced-cost care to low-income residents who do not have health insurance.
Twenty-two percent would provide financial support to the county’s Department of Health Services to safeguard its public hospital and clinic services. Ten percent would be allocated to the Department of Public Health to support core public health functions and the awarding of grants to support health equity.
The rest would be sprinkled across the health care system, including to support nonprofit safety net hospitals and for school-based health needs and programs.
A last-minute amendment by Supervisor Lindsey Horvath set aside 5% of funding for Planned Parenthood.
The spending would be monitored by a nine-member committee but ultimately would be up to the discretion of the Board of Supervisors.
