There was mixed reaction today at City Hall as councilmembers heard several proposals to help generate revenue and help Los Angeles move closer to a balanced budget.
City Administrative Officer Miguel Santana presented numerous revenue options in council chambers today — also called Revenue Day — to help solve the City’s $200 million deficit.
Santana said the City must aim to accomplish two fundamental goals: make further reductions in expenditures and increase revenue.
Santana discussed various proposals which consisted of mainly raising city taxes. Two of the proposals he championed include doubling the Documentary Transfer Tax, which is proposed to generate an additional $100 million in revenue. The tax would be the highest tax of its kind in Los Angeles County, but it would still be lower than those in San Francisco, Oakland, or Berkeley.
Another idea is to increase the Parking Occupancy Tax from 10% to 15% which would generate $145 million in revenue.
For the last few years, the City has worked to find creative ways to reduce the deficit while maintaining City services. Councilmember Bill Rosendahl, who sits on the City’s Budget and Finance Committee, is committed to finding ways to make City government leaner, smarter, and more efficient.
“This year, we continued to tighten our belts and maintain or increase core municipal services while downsizing the size of City government and implementing long-term fiscal reforms,” said Rosendahl in a recent letter to constituents.
After the CAO presentation, the City Council directed staff to analyze both options and report back to Council before October 1. Voters will ultimately have the final say on the matter.
Rosendahl sits on the City’s Budget and Finance Committee.