Is Spending in the City of Long Beach Excessive?.
Description
The Case: Is Spending in the City of Long Beach Excessive? As reported in the local Long Beach media, the City Council at the request of Mayor Garcia voted to place on the March 2020 ballot a measure that would make permanent Measure A (2016). Measure A increases the retail sale tax rate by 1% for 10 years. The total sales tax rate in Long Beach is now 10.25% of which 2% is allocated to Long Beach. The measure has generated about $60 million annually. The Mayor’s justification was to maintain levels of spending for public safety and infrastructure, to help cover the $25 million obligation made by the City to help support the Long Beach Community Hospital Seismic Retrofit project, and to pre-empt Los Angeles County from filling in the 1% tax rate upon expiration in 2027. Note that State law caps the sales tax rate at 10.25%, and that other taxing jurisdictions, through voter referendum, may only increase the sales tax rate if it is less than 10.25%. If Measure A expires without extension, other taxing jurisdictions like LA County, may levy a rate of up to 1% and use the funds for those jurisdiction’s functions. Some critics have stated that the tax rates are too high already as evidenced by the fact that the City has the highest sales tax rate permitted in the State. This would most likely be permanent if the proposed measure was passed by voters (this assumes that the State and other taxing jurisdictions do not lower their sales tax rates). Further many of the critics state that the problem is not one of too little revenue but of too much spending. 10/23/2019 Writers Hub – Freelance Writing https://www.writershub.org/writer/orders/488538#instructions 5/7 Given the scenario noted above it is important to address the criticism that has been levied that the City has a spending problem. As such it is important to examine spending by the City to determine if the critic’s comments have any validity. ***Check additional materials for Excel template and detailed instructions. The assignment is two parts (excel spreadsheet and writing a memo)