An initiative for a countywide half-cent sales tax increase aimed at funding health care services faced a setback in early election results on Tuesday night, as voters appeared to be rejecting it.
Referred to as the Essential Services Recovery Act, this proposal seeks to implement a half-cent rise in the county’s general sales tax over a five-year period.
The county estimates this measure could yield approximately $1 billion annually to help sustain health services.
Although ballots are still being counted, so far, Measure ER has garnered support from just 46.3% of voters, which is below the 50% necessary for it to pass.
If it were to pass, the sales tax would increase from 9.75% to 10.25% in the county.
The Los Angeles County Board of Supervisors voted 4-1 to place this measure on the ballot back in February, with Supervisor Kathryn Berger being the only one to vote against it.
This proposal follows a recent approval of Measure A, which is a half-cent sales tax increase set to begin in April 2025, replacing the quarter-cent Measure H tax. The funds from Measure A are designated to assist the homeless, though it’s faced criticism after an audit revealed insufficient tracking of the funds used for homeless-related costs.
In advocating for the ER measure, county supervisors argued it is essential to stabilize the county’s health care system, which is grappling with pending cuts to state and federal funding.
Recent modifications to federal budgets are projected to slash billions in health care funding, according to regulators.
County officials have expressed concerns that funding cuts and changes in eligibility for Medi-Cal could leave some residents without insurance and diminish access to medical care.
According to the regulators, “The hardest-hit sectors in the county are expected to lose a total of $2.4 billion over the next three years.”
Due to these funding losses, the county has already implemented a hiring freeze and is contemplating service consolidations, which may lead to laying off around 5,000 staff members and closing facilities in the upcoming years.
State authorities are also taking measures to limit medical expenditures. For instance, in January, the California Department of Health Services ceased enrolling new adult immigrants without legal status into the state-funded Medi-Cal program.
Additionally, California plans to remove certain non-emergency dental benefits for some existing enrollees and introduce a $30 monthly premium starting in July 2027 for immigrants still in the program, including those with legal status.
Federal regulations prevent the use of federal health care funds for undocumented immigrants, and it falls upon states to finance these programs.
Opponents, including Berger, argue that the health care challenges are not exclusive to Los Angeles County and should not be tackled through an increase in local taxes.
