After looking at other options, a sales tax increase was the only one to counter the cuts from H.R.1, also known as the \u201cBig Beautiful Bill,\u201d adopted by Congress and signed by the president in July. The sales tax would raise about $1 billion annually and sunsets after five years, in 2031.<\/p>\n
\u201cFrom my perspective, there is no other option for LA County to close a $2.4 billion gap from H.R.1,\u201d Mitchell said.<\/p>\n
The ballot measure includes a spending plan that will pump money back into county clinics, hospitals, emergency departments as well as hundreds of nonprofit medical clinics that would otherwise lose funds and patients who get cut off from the federal-state funded Medi-Cal. Also, the cuts put 64,000 jobs at risk, according to the county.<\/p>\n
The county hospitals and clinics are facing loss of funds that will reduce staffing, close county clinics and possibly some county hospitals, while overcrowding public and private emergency rooms, said Dr. Christine Ghaly, executive director of the county Department of Health Services.![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/02\/LDN-L-TAXFOLO-0213.jpg\")
<\/p>\n
Many cities are opposed<\/p>\n
The California Contract Cities Association, which has 73 member cities from LA County, wrote a letter to the Board opposing placement on the ballot. CCCA\u2019s CEO Marcel Rodarte, in his letter, cited several factors why the cities are opposed.<\/p>\n
First, they are concerned that with most LA County cities already at 10.5% or 10.75%, passage would raise their city sales tax to 11% or 11.25%, a psychological hurdle that may affect passage of any future city-initiated sales tax raises. \u201cCities said if we wanted to do our own sales tax measure (increase), this makes it more difficult for cities,\u201d Rodarte said on Wednesday, Feb. 18.<\/p>\n
The county sales tax is 9.75%, but cities, schools and transit agencies stack on top of that. Also, the state has a cap on sales taxes. The remaining cap is 1%, the county reported. To free up cities for future sales tax measures above the cap, the county is working with several legislators who\u2019ve written legislation that exempts cities from the cap.<\/p>\n
Others fear that in LA cities near Orange County, Ventura County or San Bernardino County, shoppers of large-ticket items such as cars would go across the county border to save hundreds of dollars on taxes.<\/p>\n
\u201cIf this motion passes and pushed the tax rate to such a high level, cities, especially those along the border of Orange County, can expect to see many people to spend their hard-earned dollars in cities with lower sales tax rates,\u201d wrote the city of Norwalk in its opposition letter, signed by all five members of the City Council.<\/p>\n
Another argument is affordability.<\/p>\n
\u201cWe are concerned this measure would disproportionately burden the very residents the County seeks to protect, who are facing historic affordability pressures on housing, food, fuel, utilities and childcare costs,\u201d wrote Rodarte.<\/p>\n
![\"Jim](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/02\/LDN-L-TAXANALYSIS-0223-01.jpg\")
Jim Mangia, president and CEO of St. John\u2019s Community Health, leads a group of clinics and healthcare workers called the Restore Healthcare for Angelenos coalition at a rally in Venice for a sales tax measure that would raise backfill dollars in LA County cut by H.R. 1. (image courtesy of Restore Healthcare for Angelenos)<\/p>\n
Jim Mangia, CEO and president of St. John\u2019s Community Health, has been the leader of a coalition of nonprofit clinics, physicians groups and county employees unions supporting the measure.<\/a> His nonprofit provides medical, dental and mental health services to 144,000 patients a year at 25 clinic sites in LA County.<\/p>\n He called cities short-sighted, saying a sales tax increase that will cost $5 per month for a family of four, and excludes groceries and prescription drugs, is worth the price of saving healthcare for their needy residents. In Norwalk, 23% of that city\u2019s residents will lose their healthcare, he said.<\/p>\n \u201cIf you are talking about the question of affordability, one of the largest is healthcare costs,\u201d he said on Tuesday, Feb. 17 in an interview.<\/p>\n General vs Special tax<\/p>\n Cities from Glendale to Pico Rivera argue that the sales tax measure is incorrectly listed as a general tax. The money would flow into the county\u2019s general fund. That means, the delivery of dollars could go elsewhere if there\u2019s a change of direction from the Board or money needed for a different emergency.<\/p>\n Rodarte said many cities wanted the measure to be a special tax, to better ensure that monies would go to specific healthcare services. But a special tax requires a two-thirds vote, and a general tax only requires a majority vote for passage.<\/p>\n Polls done by supporters show 58% in favor, Mangia said.<\/p>\n \u201cA special tax would\u2019ve protected taxpayers because the county could only use it as presented on the ballot, that is, to supplement healthcare clinics,\u201d Rodarte said. He said the special tax designation would \u201cput guardrails on the revenue.\u201d<\/p>\n Mangia said the general vs. special tax argument is false. He said the cities true motivation is about enacting their own higher sales taxes, producing more targeted revenue for city programs. He said protections are in place for the dollars to go toward helping clinics and county healthcare services used by low-income residents throughout LA County.<\/p>\n \u201cThe Board of Supervisors put the measure on the ballot and adopted a spending plan that locks in how that money will be allocated and spent. It is very transparent,\u201d Mangia said. He said there are at least a hundred organizations, from healthcare providers to healthcare employees, health services directors and labor unions at the county who will be watching spending audits and will make sure the money is spent accordingly.<\/p>\n City of Azusa Mayor Edward Alvarez wrote in a letter to the Board that their approach was \u201cnot a responsible or accountable solution,\u201d a sign of distrust.<\/p>\n Alvarez points to the previous Measure A, a November 2024 general, one-half-cent sale tax approved by voters for homeless services and new affordable housing. In his opposition letter, Alvarez wrote the city of Azusa taxpayers generate $5 million per year from Measure A, but the city is projected to receive less than 6%.<\/p>\n \u201cMeanwhile substantial funding is absorbed at the county level, even as cities shoulder the impacts of the homelessness crisis,\u201d he wrote.<\/p>\n Nearby San Gabriel Valley city of La Verne also said the city would not get its fair share from the new tax. \u201cWhile La Verne residents and businesses would bear the financial burden of this countywide sales tax, the structure of the measure provides no mechanism to ensure that funds are returned to communities in proportion to their contribution,\u201d wrote Mayor Tim Hepburn in a letter urging the Board to scrap the measure.<\/p>\n Glendora Mayor David Fredendall, in his letter of opposition, hinted that the city may work with like-minded groups to oppose the measure.<\/p>\n \u201cGlendora intends to work collaboratively with other cities, councils of governments, regional associations, and partner organizations to oppose this effort,\u201d he wrote.<\/p>\n Jon Coupal, president of the Howard Jarvis Taxpayers Association, said the affordability aspect is important to cities. \u201cA sales tax is a highly regressive tax and that falls harder on the middle class, working class and lower income people,\u201d he said. The cities\u2019 strong objections could cause his group to reach out to them for help with an opposition message.<\/p>\n He said usually cities and his organization are on opposite sides. This time, they may work together. \u201cPolitically it will make for interesting bedfellows,\u201d Coupal said.<\/p>\n Alternative solutions?<\/p>\n Norwalk suggests since the federal cuts affect the entire state, that the state Legislature should act. A state tax on 40 million residents would cost less than an LA County tax. \u201cThe Board of Supervisors should consider working with state legislators to implement a statewide tax to handle this statewide problem,\u201d wrote the members of the City Council.<\/p>\n![\"U.S.](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/02\/1771636148_438_LDN-L-BERNIE-RALLY-0219-DK-02.jpg\")
U.S. Sen. Bernie Sanders speaks during a rally in support of a proposed billionaires tax in California at the Wiltern in Los Angeles on Wednesday, Feb. 18, 2026. (Photo by Drew A. Kelley, Press-Telegram\/SCNG)<\/p>\n