Funding for the Los Angeles Fire Department Through a One-Half Percent Sales Tax

IMPARTIAL SUMMARY BY SHARON M. TSO, CHIEF LEGISLATIVE ANALYST This citizen-sponsored ballot initiative, if approved, would require the City to adopt an ordinance to impose a new one-half percent (0.5%) retail transactions and use tax (Sales Tax) in the City of Los Angeles. The proceeds generated by this new Sales Tax would be used to provide supplemental funding for the Los Angeles Fire Department (LAFD). The City’s current Sales Tax rate is 10.25%. This new tax would remain in place unless repealed by the voters, or if City budget obligations are not met, as specified in the initiative. Currently, the LAFD is funded primarily through the City’s General Fund. The General Fund is the primary operating fund of the City, and receives revenues from various taxes, permits, fees, fines and other sources that are available for discretionary uses. The General Fund has limited resources and is used to fund the majority of City departments that provide services to the public. If adopted, the additional revenue will be deposited into a new Special Fund. These funds would be used for LAFD-specific purposes, including but not limited to: ● Hiring and retaining firefighters, paramedics and civilian LAFD staff; ● Purchasing and maintaining vehicles to support firefighting and rescue needs, such as fire trucks, fire engines, ambulances, aircraft and helicopters; ● Purchasing and maintaining equipment to support firefighting and rescue services; ● Replacing, upgrading or building new fire stations and emergency medical services facilities, the construction of which would be subject to project labor agreements and prevailing wage requirements; ● Purchasing and maintaining emergency communications systems; and ● Improving brush clearance and wildfire preparedness. In order to collect this tax, the City would be required to maintain the LAFD discretionary budget at the average percentage provided for the ten years preceding the operative date of the ordinance. The measure would also establish a Citizens’ Oversight Committee (COC) to monitor the expenditure of revenue generated by this Sales Tax. The COC would consist of five members, drawn from residents of the City. The Mayor, Fire Chief, City Controller, City Administrative Officer and the Chair of the City Council Public Safety Committee would each have authority to appoint one member to the COC. The COC would be required to review expenditures and issue reports to the Mayor, Board of Fire Commissioners, City Council and the public at least annually. The City Council’s authority to amend the ordinance without voter approval is limited to amendments that are strictly necessary to implement or administer the ordinance; do not alter the rate or duration of the sales tax; or furthers the purpose of the ordinance. Any Council-initiated amendments would require approval by two-thirds of the Council after a 30-day public notice. The one-half percent sales tax proposed by this initiative would be imposed approximately 110 days after voter approval. This measure would become effective if approved by a majority of voters.

FINANCIAL IMPACT STATEMENT BY MATTHEW W. SZABO, CITY ADMINISTRATIVE OFFICER This measure increases the City’s sales tax by 0.5 percent (from 10.25 to 10.75 percent). It generates roughly $345 million annually for a special fund dedicated exclusively to support the operation and services of the Los Angeles Fire Department (LAFD), inclusive of its core functions: hiring and retaining staff; purchasing and maintaining firefighting vehicles and equipment; building new and upgrading existing fire stations; and, enhancing wildfire readiness and brush management. Revenues and expenditures will be monitored by a citizens’ oversight committee and audited annually. The measure requires a “maintenance of effort” whereby the City must fund LAFD at a baseline level equal to the average percentage of total discretionary funding to LAFD during the ten fiscal years immediately preceding the operative date of the measure. Should this funding level not be met, the tax cannot be levied during that fiscal year.

ARGUMENT IN FAVOR OF INITIATIVE ORDINANCE FD Every time you call 911, you expect us to be there. So do we. As Los Angeles Fire Department Firefighters and Paramedics, we’ve dedicated our lives to protecting this city. We respond to your worst days: house fires, heart attacks, car accidents, hazardous materials incidents, rescues, and increasingly destructive wildfires. Every second matters and can mean the difference between life and death. But right now, due to a lack of firefighters, paramedics, equipment, and resources, it’s taking us nearly twice as long as it should to arrive in an emergency. When we’re delayed, we know what can happen. We’ve watched fires grow beyond control, fought to save patients whose chances of survival dropped with every passing minute, and stood beside families knowing a faster response could have changed the outcome. To see if LAFD Firefighters & Paramedics can get to you in time, visit FundLAFire.com. After decades of neglect, we can’t trust City Hall to fix the LAFD. That’s why LAFD Firefighters and Paramedics wrote Measure FD: to ensure faster 911 emergency response, prevent wildfires, and protect our communities. 911 Emergency Response Times More than 80% of all LAFD 911 calls are medical emergencies, such as heart attacks, strokes, and car accidents. The national standard for a paramedic to arrive at a medical emergency is four minutes; in Los Angeles, it often takes nearly twice that long. When a person is in cardiac arrest, they only have 4-6 minutes before irreversible brain damage occurs. These extra minutes due to staffing shortages lead to tragic outcomes we carry with us. That’s why we wrote Measure FD. Measure FD will allow the LAFD to hire more paramedics and reduce 911 emergency response times. Wildfire Protection Wildfire risk in Los Angeles is at an all-time high. Measure FD is vital to minimizing this risk: it will increase funding for the department’s brush clearance and wildfire prevention programs while modernizing water-dropping helicopters, acquiring specialized aircraft, and providing the firefighters needed to combat these blazes. 1965 LAFD Resources for a 2026 City Since 1965, LA’s population has increased more than 50%; there’s been no increase in firefighters or paramedics, and the city has fewer neighborhood fire stations today, making it impossible to respond effectively to 500,000 annual calls for service. With Measure FD, the LAFD will be able to hire at least 1,000 additional firefighters and paramedics so that we can arrive on time when you need us the most. All Funds Dedicated to the LAFD Measure FD provides a dedicated, locally controlled funding source, requiring 100% of funds to go to core LAFD services that cannot be diverted for any other purposes. This funding is critical because we’re stretching every resource we have: moving from one emergency to the next without stopping, sending engines across town because the closest ones are already committed, and running short on ambulances as demand outpaces staffing - all while our stations and equipment keep aging. Where do Measure FD tax funds go? By law, 100% of the money goes to core LAFD services, including recruiting and retaining well-qualified firefighters and paramedics, increasing brush clearance and wildfire prevention programs, and providing firefighters with up-to-date equipment. It’s deposited into a dedicated, locked fund, and City Hall politicians are legally prohibited from redirecting a single dollar anywhere else. How is Measure FD different from other Los Angeles tax measures? Because Measure FD is built differently. It creates a single, locked fund that can only be spent on LAFD staffing, vehicles, equipment, and stations. It requires public spending disclosure, independent annual audits, and is monitored by a citizens’ oversight committee. There’s no ambiguity about where the money goes, because the ordinance doesn’t allow it to be diverted for any other purposes. Does Measure FD prevent City Hall from cutting existing LAFD funding? Measure FD prohibits city politicians and bureaucrats from redirecting any existing LAFD funding. Measure FD includes a Maintenance of Effort requirement: the City must continue funding the LAFD at least at its average share of the discretionary budget over the past ten years. If the City fails to meet that baseline, it’s legally barred from collecting the new tax that year. This funding must supplement, not replace, existing LAFD resources. How much will Measure FD cost taxpayers? Measure FD is a half-cent sales tax: five cents on a $10 purchase. That nickel means help gets there faster when someone you love calls 911. What specific LAFD programs and equipment does Measure FD fund? Hiring additional firefighters and paramedics to reduce 911 emergency response times and expanding brush clearance and wildfire prevention. In 2025, wildfires cost LA taxpayers hundreds of millions of dollars in damaged infrastructure, equipment, emergency response, and lost revenue; it costs far less to prevent a wildfire than to recover from one. The measure also allows the LAFD to meet national staffing standards, upgrade fire stations, provide protective equipment like fire-resistant clothing and radios, and modernize our 911 communications technology. Measure FD comes with enforceable accountability built directly into the law: independent audits, public reporting, and citizen oversight, so taxpayers know exactly how every dollar is spent. That’s why Measure FD is supported by your local firefighters and paramedics, emergency room doctors, and small business owners. Every year we wait is another year of response times that run nearly double the national standard, another year of firefighters and paramedics stretched to cover a city that outgrew them decades ago. LA has grown. It’s time the LAFD did too. In Los Angeles, it’s not a matter of if - but when - you call 911 for someone you love. When you vote yes on Measure FD, you’re investing in something every resident depends on, whether they realize it today or not, because someday, the life we save could be yours. Join LAFD Firefighters & Paramedics, the LAFD Chief Officers Association, California Professional Firefighters, and the International Association of Fire Fighters in voting YES on Measure FD. For more information, visit FundLAFire.com. PERSON SIGNING ARGUMENT IN FAVOR OF INITIATIVE ORDINANCE FD DOUG COATES JAIME MOORE President Fire Chief United Firefighters of LA City Los Angeles Fire Department ERIC GONZALEZ OMAR VELASQUEZ Firefighter Firefighter/Paramedic LAFD, Pacific Palisades LAFD, Boyle Heights LEON DUNN DAVID RILES Captain Captain LAFD, Skid Row LAFD, Chatsworth GERARDO PUGA MIRANDA MCOSKER Captain Firefighter LAFD, Panorama City LAFD, Lincoln Heights KIMBERLY HERRING CHRIS MIYASATO Firefighter/Paramedic Firefighter LAFD, South Los Angeles LAFD, Echo Park Arguments printed are the opinions of the authors and are not checked for accuracy by any City agency. In addition, the title beneath a signer’s name is for identification purposes only and does not indicate that the individual is signing on behalf of the organization.

REBUTTAL TO THE ARGUMENT IN FAVOR OF INITIATIVE ORDINANCE FD MEASURE FD IS A SALES TAX INCREASE. IT RAISES THE SALES TAX TO 10.75% If Measure FD passes, it would raise the sales tax in the City of Los Angeles to 10.75%. It would be the third sales tax increase in two years after county sales tax increases for homelessness (Measure A in 2024) and health care (Measure ER in June). Measure FD alone will cost taxpayers about $345 million per year. Divided by L.A.’s population of about 4 million, that averages out to more than $86 per person per year in additional sales taxes, $345 for a family of four. Every year. THIS TAX INCREASE IS AN INITIATIVE ORDINANCE, TO GET THROUGH A LOOPHOLE. The state constitution says special taxes, where the money is earmarked for a specific purpose, require a two-thirds vote – 66.67% – to pass. However, courts have recently ruled that a special tax needs fewer votes – only 50% plus one – if it is placed on the ballot by a citizens’ initiative. The proponents of this tax increase wrote it themselves, decided where the money will go, collected signatures, and now can raise the sales tax without needing a two-thirds vote. It isn’t right that courts have made it easier to raise taxes. THE LOOPHOLE WILL BE CLOSED IF VOTERS PASS PROPOSITION 43 IN NOVEMBER Initiative Ordinance FD is a special tax that may squeeze through the loophole to pass with fewer votes than the 66.67% the constitution requires. If voters pass Proposition 43 in November, the loophole will be closed on January 1 and all future special taxes will require a two-thirds vote to pass. CITY LEADERS SHOULD FULLY FUND THE FIRE DEPARTMENT WITHOUT A TAX INCREASE In the 2025-26 budget year, the city’s total General Fund revenue was more than $8.1 billion. Why is a sales tax increase needed to pay for the most essential city services? What is in the budget that’s a higher priority than fully funding the Fire Department? HOMELESSNESS STRAINS FIRE DEPARTMENT RESOURCES, THE BUDGET SHOULD REFLECT THAT In 2025-26, the city spent approximately $350 million from the General Fund on homelessness. That was only about a third of the total city budget for homelessness, which was approximately $1 billion. Given the number of fires related to homeless encampments, the city could be spending part of the homelessness budget to fully fund the Fire Department, without a tax increase. WHY IS REMODELING THE CONVENTION CENTER PRIORITIZED ABOVE THE FIRE DEPARTMENT? In a September 18, 2025, letter to the City Council, the City Controller warned that the $2.7 billion upgrade of the Convention Center would require “an additional average of $116 million from the General Fund each year for the next 28 years....” That’s $116 million per year that could have been used to hire firefighters. SALES TAXES ARE ALREADY TOO HIGH, VOTE NO ON INITIATIVE ORDINANCE FD You pay enough in taxes. The city wastes money. Vote no on Measure FD. PERSONS SIGNING REBUTTAL TO THE ARGUMENT IN FAVOR OF INITIATIVE ORDINANCE FD HOWARD JARVIS TAX PAYERS ASSOCIATION Jon Coupal President Arguments printed are the opinions of the authors and are not checked for accuracy by any City agency. In addition, the title beneath a signer’s name is for identification purposes only and does not indicate that the individual is signing on behalf of the organization.

ARGUMENT AGAINST INITIATIVE ORDINANCE FD VOTE NO ON INITIATIVE ORDINANCE FD. IT RAISES THE SALES TAX TO 10.75% As of October 1, the sales tax in the city of Los Angeles is 10.25%. If INITIATIVE ORDINANCE FD passes, the sales tax in L.A. will be 10.75%. This would be the third sales tax increase in two years for Los Angeles city residents, following county sales tax increases for homelessness (Measure A in 2024) and health care (Measure ER in June). INITIATIVE ORDINANCE FD TRIES TO SQUEEZE THROUGH A LOOPHOLE THAT VOTERS MAY CLOSE The California Constitution requires special taxes (when the money is earmarked for a special purpose) to be approved by two-thirds of voters in order to pass. However, since 2017, state courts have carved a loophole in this important Proposition 13 protection. Judges have allowed some earmarked taxes to pass with fewer votes if they are placed on the ballot by collecting signatures on petitions. This loophole may be closed by voters with Proposition 43 on the November ballot, restoring the two-thirds vote to pass special taxes. Proposition 43 would take effect in January, 2027. The INITIATIVE ORDINANCE FD sales tax increase would squeeze through the loophole to evade the two-thirds vote requirement. CITY LEADERS SHOULD FULLY FUND THE FIRE DEPARTMENT WITHOUT A TAX INCREASE INITIATIVE ORDINANCE FD is a sales tax increase to raise approximately $345 million annually for the Fire Department. In the 2025-26 budget year, the city’s total General Fund revenue was more than $8.1 billion. Why is a sales tax increase the only way to pay for this essential service? What is in the budget that’s a higher priority than fully funding the Fire Department? HOMELESSNESS STRAINS FIRE DEPARTMENT RESOURCES, THE BUDGET SHOULD REFLECT THAT In 2025-26, the city spent approximately $350 million from the General Fund on homelessness. That was only about a third of the total city budget for homelessness, which was approximately $1 billion. Given the number of fires related to homeless encampments, it’s worth asking whether a significant portion of the General Fund spending on homelessness should instead be spent on the Fire Department, without a tax increase. THE CITY’S SPENDING PRIORITIES ARE RECKLESS In a September 18, 2025, letter to the City Council, the City Controller warned against approving a $2.7 billion upgrade of the Convention Center. “If this plan goes through, the City is projected to need an additional average of $116 million from the General Fund each year for the next 28 years starting in [Fiscal Year] 2029. $116 million is the equivalent of nearly 1,000 City jobs,” the controller wrote. He ended his letter by stating, “as long as the City fails to fundamentally change the way it handles its finances and continues to inadequately fund City services for our nearly four million residents, we can’t recommend taking on this project at this time.” The City Council approved the costly project anyway. That’s $116 million per year that could have been used to hire firefighters. SALES TAXES ARE ALREADY TOO HIGH, OVER THE CAP THAT IS WRITTEN IN STATE LAW California law limits local sales taxes to a total of 2% on top of the state sales tax of 7.25%. However, state lawmakers routinely pass new laws to exempt new and higher sales taxes from the cap. This important taxpayer protection has been gutted. Sales taxes are becoming a greater and greater burden on Californians who are at least able to afford higher prices. VOTE NO ON INITIATIVE ORDINANCE FD Do not let the city government get away with wasting money that should be spent on the highest priorities first. There’s no higher priority than fully funding first responders. Vote NO on INITIATIVE ORDINANCE FD and tell city leaders to get their priorities straight. PERSONS SIGNING ARGUMENT AGAINST INITATIVE ORDINANCE FD HOWARD JARVIS TAXPAYERS ASSOCIATION Jon Coupal President Arguments printed are the opinions of the authors and are not checked for accuracy by any City agency. In addition, the title beneath a signer’s name is for identification purposes only and does not indicate that the individual is signing on behalf of the organization.

REBUTTAL TO THE ARGUMENT AGAINST INITIATIVE ORDINANCE FD The opponents are right about one thing: City Hall should fully fund the Fire Department. We agree. As LAFD Firefighters and Paramedics, we’ve made that case for decades in City Hall, under mayors and councils of every political stripe. It never happens. Since the 1960s, Los Angeles has grown by more than 50%, over 1.4 million more residents, while the number of firefighters hasn’t grown at all, and there are fewer neighborhood fire sta- tions today than there were then. That isn’t one bad budget year. That’s more than 60 years of City Hall refusing to make the LAFD a priority. Waiting for politicians to “get their priorities straight” is a plan we’ve already tried. People died waiting. That’s why LAFD Firefighters and Paramedics wrote Measure FD and why voters, not politicians, placed it on the ballot. We also understand the cost of living is high. We pay taxes too. That’s why Measure FD is a half-cent: a nickel on a $10 purchase. Even if Measure FD passes, LA City would still have a lower tax rate than our neighbors in Long Beach, Santa Monica, Pasadena, Burbank, and most LA County cities. That nickel buys something no City budget has delivered in generations. At least 1,000 ad- ditional firefighters and paramedics, faster 911 response, and real wildfire prevention: brush clearance and modern water-dropping helicopters. More than 80% of LAFD calls are medical emergencies, and it now takes nearly twice the national four-minute standard for a paramedic to reach you. In cardiac arrest, brain dam- age begins in 4 to 6 minutes. The opponents offer no proposal to fix that. The opponents warn the City wastes money on other priorities. Again, we agree. That’s pre- cisely why Measure FD was written by us - so City Hall can’t touch a dime of it. By law, 100% of the funds go into a locked, dedicated account that can only be spent on LAFD Firefighters & Paramedics, equipment, and stations, enforced by independent annual audits and public spending disclosures. And Measure FD includes a Maintenance of Effort guarantee: if City Hall cuts the LAFD’s existing share of the budget, it is legally barred from collecting this tax at all. Politicians can’t divert this money to anything else. That’s more accountability than the City’s own budget process has ever provided, and it’s why the opponents’ real argument is with City Hall, not with your firefighters. The opponents say to tell city leaders to get their priorities straight. We’ve told them for 60 years. Now it’s your turn to be heard. One day you WILL call 911 - a fire, a crash, a medical emergency involving you or some- one you love. When that day comes, you need us there fast. Nothing else matters. Mea- sure FD helps us get there faster. Vote YES on Measure FD. PERSONS SIGNING REBUTTAL TO THE ARGUMENT AGAINST INITIATIVE ORDINANCE FD BRENT KNEISLER LUCIA LIMA Inspector Firefighter LAFD Brush Clearance & Wildfire Prevention LAFD, Watts TANYA CRABBE JAVIER HONLES President Captain Los Angeles Women in the Fire Service LAFD, Encino MARK MCLEAN GARY IZQUIERDO Firefighter Firefighter/Paramedic LAFD, San Pedro LAFD, Hollywood ANGELO PITILLO KYLE CAWDREY Firefighter/Paramedic Firefighter LAFD, West Adams LAFD, Pico-Robertson DAVID RILES FERNANDO PIZANO Captain Firefighter LAFD, Chatsworth LAFD, North Hollywood Arguments printed are the opinions of the authors and are not checked for accuracy by any City agency. In addition, the title beneath a signer’s name is for identification purposes only and does not indicate that the individual is signing on behalf of the organization.