Do LA voters want another sales tax to fight homelessness?

LA County voters will likely decide whether to approve a new sales tax increase to fund homeless services and affordable housing in the region.

On Tuesday, proponents of a ballot measure are expected to submit to the LA County Registrar-Recorder what they say are enough signatures to qualify the issue for November. The proposal is currently titled the Affordable Housing, Homelessness Solutions, and Prevention Now Transactions and Use Tax Ordinance.

What would this ballot measure do? 

Backers of the proposed ballot measure are calling it a new approach to the homelessness crisis, based on lessons learned in recent years.

Remember Measure H? That was the quarter-cent sales tax that LA County voters approved back in 2017 to fund homeless services like encampment clearing and supportive housing. It’s raised hundreds of millions of dollars each year, but it will sunset in 2027.

This new measure will replace that quarter-cent sales tax with a half-cent sales tax for the same purposes plus some additional ones, like affordable housing. Proponents say a guaranteed local funding stream is crucial because they’re staring down a fiscal cliff with Measure H revenue drying up, and the state facing a budget deficit.

“If this measure does not pass, the expansion of affordable housing will come to a halt,” says Miguel Santana, CEO of the California Community Foundation –– a major backer of the initiative. “The cost of housing will continue to climb significantly, and programs moving people from encampments into housing will largely come to an end. The cost of not moving this forward will result in an even greater number of people experiencing homelessness.”

Some voters might be skeptical since LA has spent a lot of tax dollars on homelessness already and are continuing to see more people living on the streets. Could that be an issue for this measure?

It could. Homelessness has increased annually since 2017 despite efforts to curb it. But the measure’s proponents say they are aware of these worries and are promising to do better. 

“Concerns around the cost per unit, concerns with the lack of accountability or the lack of outcomes that people may see, concerns with who controls these revenue streams. Those are legitimate concerns,” says Santana.

So now, proponents are emphasizing that this proposal has more accountability safeguards and clearer goals. Unlike Measure H, this funding would be indefinite, but it could be adjusted every five years by the county based on results. Every service provider who receives funding generated by the tax will have to report in detail to the public how the money is being spent, and how successful they are. 

Last month, the state auditor published a report questioning California’s ability to track its spending on the homelessness crisis. The month before, a federal judge overseeing homelessness in the region ordered an independent audit of the City of LA’s homelessness spending. 

Supporters of the measure point out that when you ask voters what they care about, homelessness is at the top of the list. So, they hope LA County voters will support another tax increase to provide housing and services. 

Is there any organized opposition?

There is no organized opposition yet, but there are some skeptics –– including Fix The City’s Mike Eveloff, who regularly sues LA over planning issues. He doesn’t think the accountability requirements in the measure are clear enough.

“Increasing taxes –– especially regressive taxes –– should be a last step,” says Eveloff.

Who’s behind this measure? 

The proposed measure was written by –– and is financially supported by –– a big coalition of nonprofits that work in homeless services and housing, including The California Community Foundation and United Way of Greater LA; service providers who do outreach, including PATH; affordable housing developers; and construction labor unions.