East LA Residents Could Face Tax Hike, Police Cuts For Cityhood
LOS ANGELES (CBS) — A campaign to establish the city of East Los Angeles may hinge largely on whether residents can afford a steep increase in utility taxes and cuts to local law enforcement services.
The report released Wednesday will be reviewed by a Los Angeles County panel over the next month ahead of a vote on whether to approve the incorporation for a city of approximately 126,000 residents.
While the report projected an initial $11 million budget shortfall for the proposed city, it warned the gap could grow to $20 million as state revenue from vehicle licensing fees decline.
The group's official website downplays the any possibility of tax increases expanding to property taxes, pointing to existing law that states property taxes cannot be increased by local government.
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