The Los Angeles County Board of Supervisors voted Tuesday to adopt new fiscal policies, including a requirement for a supermajority vote on labor agreements.
Critics have charged the board with setting policy that ties the hands of its successors, as two of five board members term out at the end of this year.
The county counsel has advised that the requirement for four of five supervisors to approve any changes to union salaries or costs increases in employee benefits may be repealed by a vote of a simple majority.
The changes, first proposed by Supervisor Don Knabe in August, include holding back to 5-10 percent of discretionary revenues to meet unexpected budget needs; developing a multi-year plan to pay down unfunded retirement benefits; and setting aside at least $5 million to address deferred maintenance.
“As the Board of Supervisors prepares to undergo its biggest changes in decades, we have an obligation to ensure that the county can continue providing the safety net services our 10 million residents depend on,” Knabe said last month.
Chief Executive Officer William Fujioka, set to retire this year, said conservative fiscal policies were key to the county’s favorable bond ratings.
Affordable housing advocates raised concerns about one new policy that allows incremental property tax revenues, once earmarked by the state for affordable housing and community development, to also be used to fund other new construction and deferred maintenance projects.
“L.A. is the most unaffordable place in the country” due to low incomes and high rents, said Adam Cowing of Public Counsel.
Cowing and others urged the board not to overlook the “staggering” need for low and moderate-income housing.
Fujioka said the county had already set aside $80 million to fund affordable housing. He added that there was nothing in the policies that would preclude the board from committing even more money.
Housing advocates estimated that the county receives $200 million annually that was once diverted to redevelopment agencies since dissolved by the state.
— City News Service