SR-10-02-2012-13G13 -G
October 2, 2012
CITY CLERK'S OFFICE - MEMORANDUM
To: City Council
From: Councilmembers O'Connor, O'Day, and Mayor Pro Tern Davis
Date: October 2, 2012
13 -G: Request of Councilmembers O'Connor, O'Day, and Mayor Pro Tern Davis to
support Measure J on the November 6, 2012 ballot to extend the existing
transactions and use tax of 0.5% that was approved by the voters in 2008
beyond the existing 30 year period until 2069, subject to two- thirds voter
approval. This measure extends the half -cent sales tax to accelerate
construction of regional highway and transit projects to provide traffic relief
and job creation. It also provides 30 additional years of funding for local
transportation improvements and operation of regional transit services. City
Council voted to support AB 1446 the authorizing legislation on May 22, 2012.
1 13 -G
October 2, 2012
Measure J I Overview
Overview
Page 1 of 1
In June 2012, the Metro Board authorized placing Measure J on the November 2012 ballot to extend
an existing voter approved half -cent transportation sales tax, until 2069, in order to accelerate the
construction of regional traffic relieving highway and transit projects. The measure will also provide
30 additional years of funding for local transportation improvements and operation of regional transit
services.
What is Measure J?
Measure J will extend for 30 additional years the existing one -half cent sales tax that was approved in
2008 (Measure R) and is currently set to expire in 2039. The additional funds will be used to sell
bonds, which will allow Metro to accelerate construction of transportation improvements. According
to a 2008 study by the private non - profit Los Angeles County Economic Development Corporation
( LAEDC), the current tax costs residents an average of $25 per person per year. Because Measure J
will extend the existing sales tax, it is anticipated the costs will remain the same, adjusted for
inflation. Tourists and businesses also contribute money through the sales tax. The measure also
allows transit and highway funding priorities to be shifted between projects within subregions of Los
Angeles County, if approved by a two - thirds vote of the Metro Board.
Regional Impact
LAEDC reports that the projects accelerated through Measure J will advance the creation of 250,000
new local jobs (direct, indirect and induced workers). By starting construction on seven rail and rapid
transit projects, and up to eight highway projects within the next five years, instead of the twenty
years currently planned, this job creation will be accelerated. The measure will also provide an
additional thirty years of continued funding for local transportation improvements (ex. pothole repair,
signal synchronization, local roadway and bridge safety improvements), countywide bus and rail
service operations, Metrolink and Metro Rail capital improvements, and administration. The LAEDC
projects that these activities will generate another 220,000 direct, indirect and induced jobs in addition
to the employment advanced by the transit and highway project acceleration noted above.
Taxpayer Oversight
Under the existing measure, there is an annual independent audit and report to taxpayers, and ongoing
monitoring and review of spending by the independent taxpayer oversight committee. The reports are
available for public review on the internet and in public libraries. This oversight will continue with
Measure J.
Keywords: Measure, Overview
Last Revised: Monday September 24, 2012
TRANSIT INFO: n 323.GO.METRO (323.466.3876) STAY CONNECTED:
<! --[if not IE]> <! [endif] - ->
http: / /www.metro. net /projects /measurej /overview/ 9/26/2012