The homeless tents were on the street near the courthouse, with City Hall in the background. The photo was taken last week. It seems that no amount of money is enough to help the homeless.
Living in New Jersey, there was no sales tax on groceries or clothes. Why? It provides a break for the people who are struggling to get by – whose every dollar matters if they are going to eat or whether they’ll be able to provide clothing for their kids.
Now, if Measure A passes in Los Angeles, the people who can least afford to pay this tax, will be required to add a half cent sales tax to purchases. This is a regressive tax, because it takes a larger percent of money from low-income earners.
Measure A should be called “Tax the Poor. They Don’t Pay Enough.”
The L.A. Times wrote on October 7 (“Measure A Tax to Aid Homeless Gains Support’) that those aged 40 or younger support the Measure with 56% percent, the liberal support it 71% and those earning less than $40,000 annually were 57% in favor and women support it 60% to 22% against. Do the people not making less than $40,000 understand this is a tax that impacts them significantly? Rich people don’t notice sales taxes, they have enough money that they just don’t feel it.
Tim Campbell, who managed a municipal performance audit program, calls Measure A one of the most cynical propositions put on the ballot.
Measure A is a half a cent sales tax, which will replace a quarter cent sales tax, called Measure H that is set expire in 2027. The proposed Measure A will never expire. The only way to eliminate the ½ cent sales tax would be a repeal effort by citizens.
Initially voters passed a quarter cent sales tax in 2017, called Measure H. According to Ballotpedia, the tax “will be used to generate ongoing funding to prevent and combat homelessness within Los Angeles County, including funding mental health, substance abuse treatment, health care, education, job training, rental and housing subsidies, case management and services, emergency and affordable housing, transportation, outreach, prevention, and supportive services for homeless children, families, foster youth, veterans, battered women, seniors, disabled individuals, and other homeless adults.”
How has that worked out? Between 2019 and 2023, homelessness went from 58,936 to 75,300, an increase of 27.7 %.
Campbell, who also helped L.A. Alliance audit the current homelessness spending, said that L.A. County has habitually underspent its current Measure H money by an average of $109 million per year.
According to 2019-2023 tax forms of five large homeless nonprofits, those “helping” the homeless have 1) Increased their revenues from $146.1 million to $412.4 million, 2) CEO compensation has increased an average of 39%; 3) Total assets increased from $115.6 million in 2019 to $336.4 million in 2023. Of that, cash on hand increased from $12.68 million to $54.9 million. Buildings and land assets increased from $73.3 million to $140.7 million.
Campbell believes some nonprofits received money from the CARES Act and American Rescue Plan (ARPA) during the pandemic, but that money has dried up.
“And with Measure H expiring in 2027, these organizations are casting around for new revenues,” Campbell said. “They’re trying to shortcut Measure H’s sunset by getting a permanent increase approved two years early.”
Measure A, which is also called Affordable Housing, Homelessness Solution and Prevention Now Initiative,” supposedly is a citizen-led initiative. Those “citizens” are associated with nonprofits.
Lindsey Horvath wants to tax the poor.
Photo: Rich Schmitt/CTN
Well, except the Los Angeles County Board of Supervisors, who also support the measure. An internal working group, the Homeless Response and Funding Prevention group, co-hosted by L.A. County Supervisor Lindsey Horvath, worked to get this measure on the November ballot.
Campbell, who crunches numbers, wrote that “Measure A sponsors are begging poverty when they are actually swimming in cash and hard assets.”
In August, an audit of homeless programs ordered by Judge David O. Carter, showed “that figuring out which providers were paid to achieve outcomes have been like untangling a bowl of spaghetti.”
In October, Alvarez & Marsal, who were chosen to do an audit by the judge as part of a settlement with LA Alliance for Human Rights, reported that spending by providers is often unsubstantiated or inaccurate.
Measure A would continue to fund nonprofits, whose track record for helping the homeless is either nonexistent or abysmal. By voting for this measure, Los Angeles residents support taxing the poor.
Measure A: “Tax the Poor. They Don’t Pay Enough.”
