Basically, the City Council is going to ask for a .5% increase in the city sales tax. Here's the concern:
Like most California cities, Los Angeles is facing serious budget problems because of both the deep recession and poor financial decision-making. Angelenos and their elected representatives must avoid a perpetual downward spiral: budget problems that lead to a diminished police presence and reduced services, and a resulting loss of confidence and public safety, leading in turn to loss of business, lower tax revenue and further cuts. If a sales tax could prevent such a disaster — even one that pushes the city's tax rate from 8.75% to 9.25% — it should by all means be considered.
But taxes, too, can spur downward spirals, and before expecting voters here to adopt this one, the council has some explaining to do. For example, it's hard to shake the suspicion that the real purpose of this tax would be to fund the next round of raises for city workers; or that even if that's not the purpose, it would be the result.
Los Angeles' public servants for the most part work hard and are good at their jobs, and they deserve to be fairly compensated. But their pay must be based on the resources the city already has at its disposal. New tax revenue — if voters ultimately approve it — must pay to keep threatened services intact or to restore services already cut. If that means preventing layoffs, that's one thing. But new tax revenue must not merely provide a new pool of funds to put on the bargaining table when city leaders begin negotiating the next contract with public labor unions a year from now.
Let's not forget that the negotiations that resulted in the current contracts took place just as warning signs of the economic meltdown were becoming apparent, yet still Mayor Antonio Villaraigosa and the council practically gave away the store, agreeing to 25% pay increases over five years for most city workers. Since then there have been concessions, give-backs and layoffs, but the city is still in much worse financial condition because of that deal.
The next contract will be negotiated next year and is due to take effect in June 2014. For elected officials who must cultivate their relationships with powerful city unions, a no-raise contract is practically unthinkable and unspeakable. But for council members, mayoral candidates and anyone else on the management side who expects voter support, it's time to make it clear that raises are not a foregone conclusion. And they'd better start coming clean about their plans for this new tax.
http://www.latimes.com/news/opinion/edi ... 9433.story
Yay unions! Making life better for everyone!
Good one.