City leaders throughout the region are raising concerns that AB 1768 continues a troubling pattern of repeated legislative increases in local sales tax caps, reducing cities' future flexibility to address essential municipal priorities.

Furthermore, cities across Los Angeles County are already facing unprecedented fiscal pressures, including rising costs related to public safety, infrastructure, emergency preparedness, homelessness response, and aging facilities.  Preserving financial management over remaining revenue options is critical to maintaining essential services residents depend upon every day.

The coalition emphasized that opposition to AB 1768 is not opposition to healthcare funding or regional services. Legislators should prioritize a statewide solution to backfill healthcare cuts caused by H.R.1, rather than a piecemeal approach for individual counties that leave service gaps for millions of Californians. Instead, cities are concerned about the cumulative impact of continually increasing local sales tax caps through Sacramento legislation.

Key concerns raised by cities include:

• Reduced local flexibility and return for taxpayer-generated revenue
• Diminished ability for cities to pursue future local funding measures
• Increased voter fatigue and declining public trust regarding taxation
• Undue impact that increased sales tax has on already fiscally challenged working class residents

The coalition also expressed concern that repeated increases in the sales tax cap undermine long-term municipal financial planning and make it more difficult for local governments to responsibly prepare for future infrastructure and service demands.

Local governments are closest to the residents they serve. Communities deserve the ability to make local decisions about local priorities without continually reducing the financial flexibility available to cities.

The cities are urging legislators and Governor Gavin Newsom to oppose AB 1768 and preserve local fiscal flexibility for municipalities throughout Los Angeles County.

ABOUT THE COALITION

The coalition consists of local governments, city leaders, and municipal representatives throughout Los Angeles County working collaboratively to advocate for local management of tax measure revenue, responsible fiscal policy, and the long-term sustainability of essential municipal services.

The coalition represents a group of cities working to fulfill the priorities and expectations of their individual communities. Each city is unique and establishes priorities based on the specific needs of its residents, businesses, infrastructure, public safety demands, and local economy. Coalition members believe local governments are entrusted to responsibly steward taxpayer dollars in a manner that residents and businesses trust, value, and expect from their local elected leaders.