Item No. 15.
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:OFFICE OF THE CITY MANAGER
BY:ROGER BRADLEY, CITY MANAGER
DATE:FEBRUARY 10, 2026
SUBJECT:
DISCUSSION REGARDING LOS ANGELES COUNTY BOARD OF SUPERVISORS CONSIDERING A TEMPORARY ½ CENT SALES TAX MEASURE ON THE JUNE
PRIMARY BALLOT
EXECUTIVE SUMMARY
The City Council will discuss and provide staff direction regarding a proposed temporary countywide ½ cent sales tax measure on the June primary ballot. The proposed sales tax measure is intended to replace the state and federal funds lost due to the passage of H.R.1.
RECOMMENDATION
That the City Council:
Discuss and provide staff with direction regarding a proposed temporary countywide ½ cent sales tax measure on the June primary ballot.
BACKGROUND
The "One Big Beautiful Bill Act" (H.R. 1) was enacted on July 4, 2025 and included significant reductions in federal and state funding over the next decade. More specifically, the law is estimated to reduce federal Medicaid spending by approximately $900 billion to over $1 trillion over 10 years.
LA County Board Supervisor Holly J. Mitchell (2nd District) recently motioned for a vote for the LA County Board of Supervisors to place a temporary ½ cent sales tax measure on the June primary ballot that would be in place until October 2031. The motion calls for a general sales tax that would generate an estimated $1 billion in annual revenues to replace the state and federal funds lost due to the passage of H.R.1.
Additionally, the motion calls for an exemption from the current sales tax caps, adopt a spending plan expressing the Board’s intent to allocate the funds collected to offset the cuts implemented by H.R.1, and lastly approving details of the new general sales tax ordinance, entitled “Essential Services Restoration Act for Los Angeles County”.
The “Essential Services Restoration Act for Los Angeles County” would result in establishing a nine-member citizen’s oversight committee to provide transparency and ensure fiscal responsibility; and report be filled with the Board of Supervisors each year until funding is exhausted.
The proposed measure would increase sales taxes in the following manner:
Medicaid provides no- or low-cost health coverage to low-income residents, families, seniors, and people with disabilities.
In Los Angeles County, the County Department of Health Services (DHS), the loss of federal funding for Medi-Cal (Californ a loss of more than $1 billion to DHS’s annual budget.
Jurisdiction Current
Rate
Proposed
Sales Tax
Rate
Los Angeles
County 9.75%10.25
City of Downey 10.5%11%
ANALYSIS
City Staff is seeking direction from the City Council regarding the City's position on the proposed ballot measure, and next steps.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Quality of Life, Safety, & Infrastructure
Public Engagement
FISCAL IMPACT
No fiscal impact with this report.