LOCAL tAXES:
Fresh Off Passage of a $7 Billion Bond, Los Angeles Schools Ponder Parcel Tax

Only two months after voters approved a $7 billion bond for Los Angeles schools, Los Angeles Unified School District officials are considering going to voters with a parcel tax to fund schools. The district has not specified the amount of the parcel tax it is pondering.

LAUSD is facing a $400 million shortfall this year, absent action such as cutting spending. "It's becoming more and more apparent, based on the economic situation the district is in, that we need to look at a tax," Superintendent Ramon Cortines said.

A parcel tax would require two-thirds support from local voters. Mr. Cortines said it would go on the 2010 ballot at the earliest.

In November, the voters approved Measure Q, the fifth and largest school bond issue in 11 years, to build new schools and repair older ones. The bonds will be repaid through a tax on property owners in the district. Unlike bonds, a parcel tax could be used to supplement the district's regular operating budget, paying for things like the salaries of teachers and superintendents.

The Los Angeles Daily News reported that district officials are hopeful that by 2010 there will be a change in law reducing the threshold from two-thirds to 55 percent to pass a parcel tax. (Source: Los Angeles Daily News, January 14.)

Cal-TaxReports, January 20, 2009

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