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Proposed East LA City Looking for Money for Hypothetical Bank Account

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Plans to incorporate East Los Angeles as its own city are moving steadily along, despite concerns that the public is unaware of the implications of cityhood or even of the process by which a city comes into existence. EGP News detailed the debate leading up to the release of the final version of the East Los Angeles Comprehensive Fiscal Analysis late last week. The Draft CFA, released in July, did not exactly sell the financial viability of the hypothetical city of East LA. According to EGP News: East LA "would have an initial $17.6 million shortfall (including lost vehicle license fees due to recently enacted legislation, SB 89), while the County would have a $27 million gain." The draft CFA included a proposal to cover the shortfall by increasing taxes on utilities and reducing the contract with the LA County Sheriff's Department for policing.

In response to the dire financial picture presented by the Draft CFA, the leading proponents for incorporation (and the funders of the CFA), the East Los Angeles Residents Association (ELARA), submitted public comments saying there are actually $20 million in unaccounted revenues from utility taxes, grants, and various cost-saving measures, including having the county continue to run Belvedere Park.

State Assembly Majority Leader Charles Calderón will host a community meeting on the CFA and incorporation at Garfield High School today at 6 pm. The Los Angeles Local Agency Formation Commission will vote on the incorporation this month--if passed, the issue will go to a voter referendum.
· East L.A. Cityhood Effort Closes In On Next Major Hurdle [EGP]