Fixing a ‘Royal Mess’ - Do We Need Higher Gas Taxes?

PUMP POLITICS--Transportation funding in California has, as SBCA readers must know by now, reached a “crisis.” Shrinking gas tax revenues, combined with an increasing reliance on local sales taxes limited to specific transportation projects, have left our overbuilt and under-maintained highways, roads, and bridges without enough funds to keep them in a basic state of good repair.

Last year the need for a solution was so urgent that Governor Brown called a “special legislative session” on transportation funding, but the process so far has produced little. Some legislators proposed “bold” funding ideas, including raising the gas tax. Increasing the gas tax is long overdue, but meets such knee-jerk opposition that just bringing up the subject counts as a bold action. A lack of focus, and an inability to come to an agreement about how to “fix” what is a royal mess, means that so far no solution is forthcoming.

Meanwhile the yearly state budget process is underway again, with hearings to begin in earnest in the next few weeks. Governor Jerry Brown made his budget proposal in January, and will issue a “May revise” after tax day when state revenues are clearer.

In addition to the state budget, legislators are deciding how to spend the forty percent of last year’s Greenhouse Gas Reduction Fund (GGRF) that remained unallocated. This money comes from cap-and-trade and must be used to further reduce greenhouse gases. In this case, having such a large chunk of extra funds has created a sort of paralysis because everyone wants some of it.

While transportation is only part of the budget, it is a big one, and how we invest transportation dollars now will have an impact on the state for many years.

Governor Brown’s proposed budget includes a couple of new sources of income for transportation funding, but it is unclear how he will make them happen. In addition to raising gas taxes, Brown proposed a “road improvement charge” that would be added to vehicle registration fees. However, both proposals need approval by two-thirds of the legislature to pass, and Republican members continue to oppose raising taxes or adding fees. The new sources of funds would add $4 billion to Brown’s transportation budget—so if they do not pass, transportation spending could be in jeopardy.

Brown also proposes new GGRF allocations for transit (capital expenses, not operations) and for a new “low carbon roads” program. Streetsblog has written about the problems with this proposal -- that in part it seems to duplicate the existing Active Transportation Program, and that the rest of it remains worrisomely undefined.

Brown’s proposal would include the following new allocations:

From increased taxes and a new “road improvement charge”:

  • $3 billion to highways and local roads for maintenance
  • $900 million to the State Transportation Improvement Program,  which is controlled by Caltrans and the California Transportation Commission and puts most of its funding towards highway expansion
  • $200 million to trade corridors, which unfortunately means highway expansion, not rail

From the GGRF:

  • $400 million for transit capital projects
  • $100 million for “low carbon roads” 

Breaking the budget plan down into categories of “highway expansion” (car-planning-per-usual) vs. “active transportation” vs. “transit,” it is clear that it is very much business as usual. 

Business as usual: The Active Transportation Program receives less than one percent of the total proposed transportation budget, and transit does not fare much better. Image courtesy the California Bicycle Coalition

Of the total transportation budget of $18.1 billion, only a tiny slice goes to active transportation. That slice doesn’t even match the statewide bicycle commute mode share of 1.1 percent, let alone the share of all trips currently made by bicycle or walking. According to the last California Household Travel Survey, almost 20 percent of all trips are made by walking, biking, and transit -- and Caltrans’s Strategic Management Plan calls for increasing that to 47 percent by 2020.

If California wants to encourage people to bike and walk and take transit, it will to have to invest a larger percentage of its budget in those travel modes. Years of planning exclusively for cars has put the state way behind where it needs to be.

Meanwhile, the California Transportation Plan 2040, the framework used for planning to meet the state’s future transportation needs, includes the following strategies to meet a variety of state goals, including transportation and environmental goals:

  • Doubling transit service and transit speed and reducing transfer wait times
  • Twenty percent of local bus service to be Bus Rapid Transit
  • Fifty percent reduction in future high-speed rail fares
  • Five percent increase in carpooling and car-sharing
  • Doubling bicycling and walking

If the cost to own and operate private cars keeps increasing, and there are huge increases in vehicle and fuel efficiency, then the state would be able to meet its greenhouse gas reduction goals, according to the plans’ projections.

But bicycling and walking are not going to double without more investment in making them safe, viable options for more people.

Advocates working on these issues in Sacramento have been formulating ideas for a counter proposal for the transportation budget. Working as a coalition under Climate Plan, groups including the Natural Resources Defense Council, California Bicycle Coalition, Greenbelt Alliance, Safe Routes to Schools National Partnership, TransForm, PolicyLink, MoveLA, Public Advocates, and a host of others, are proposing that the governor and legislators invest transportation dollars where they will make the biggest difference in meeting public health, climate change, and equity goals.

Among their ideas are to:

  • Build Complete Streets on all those new and newly-repaved roads
  • Use transportation investments to create better job opportunities
  • Reject “low carbon roads” and invest in the existing Active Transportation Program
  • Balance transit capital investments with money for operations and transit passes
  • Increase the investment in the Active Transportation Program by at least $100 million to bring it more in line with other spending
  • Mitigate trade corridor expansion impacts, including environmental and induced traffic effects

Next Monday, April 11, the Climate Plan coalition will present a package of bills in Sacramento -- including some SBCA covered here  -- that move the state closer to achieving these goals. Stay tuned to Streetsblog California for coverage of their reception at their first hearing.

 

(Melanie Curry writes for Steetsblog California, where this piece was originally posted. To keep up with state transportation policy, follow Streetsblog on Twitter/StreetsblogCal.) Photo: The SF Chronicle. Prepped for CityWatch by Linda Abrams.

Elections ... Elections ... and More Elections

MY TURN-I don't know about you but the election cycle this year seems interminable. I think we are the only industrialized nation that has an almost two year pre-election cycle. Add to this the fact that in LA we are also in the middle of Neighborhood Council (NC) elections. And they have caused a controversy all of their own. (Photo above: Westwood Neighborhood Council voting booths.)

Of course, this year is a little different from other NC election years. Like our national elections they have their own set of candidates, voters, complainers, winners and those who are crying foul for a variety of reasons.

There were some large organizational changes this year. How the outcome will be judged depends on who you talk to. Only part of the San Fernando Valley has concluded its elections; the rest will continue in other parts of the City each week until May.

Welcome to the Twenty-first Century. For the first time, online voting has been available for those NCs that were willing to be the pioneers. Thirty-two out of the ninety-six neighborhood councils decided to be part of the experiment. We won't know the results until the election cycle is over.

The Department of Neighborhood Empowerment (EmpowerLA), under General Manager, Grayce Liu, spent almost a year investigating ways to make the election system more efficient. They hired city activist Jay Handal as Election Manager whose job has been to focus on nothing but making the elections work. Previous elections had been part of the EmpowerLA’s staff duties on top of everything else. They had an impossible workload.

Handal hired election supervisors for each of the twelve regions. They, with input from NC Board members, developed an entire marketing plan. Some of you might have seen the bus bench advertisements in your neighborhoods. There were templates developed for all kinds of promotional materials. Previously, each NC had had to do all the promotion itself.

Here's where it becomes complex. Right now our Presidential primary elections are taking up all the oxygen with a complicated process in which some states have open primaries, closed primaries, caucuses, and other methods of delegate selection. Likewise, the NCs all have different bylaws governing their elected Boards. For anyone trying to be somewhat efficient, as well as fair, it is a nightmare!  

Voter identification seems to be one of the biggest problems. Some NCs require what they call "self-affirmation," similar to our regular elections. You go to your polling place, sign a document that you are eligible to vote, get your ballot and go on your way. Others have what is called "documentation" -- and that is where the system breaks down.

When the system was devised, it was impossible to anticipate all of the circumstances that could occur. Each NC developed its own by-laws covering many things, including the structure of its board and how it would be elected.

Some NCs have eleven different ballots and the voters are restricted to voting for only candidates in their specific categories. As an example, a business owner in his NC could only vote for the candidates allocated “commercial seats.” Only stakeholders are allowed to vote, but the definition of a "stakeholder” has been redefined several times.

Now, the definition states a stakeholder eligible to vote is anyone who lives, works, owns property or has a continuing long-term organizational interest (kids attend school, family belongs to Church etc.)

This came about because of what was called the "drive-by" voters who claimed eligibility because they bought coffee at Starbucks daily. On a more serious note, it precluded developers from sending temporary workers on a construction project to vote in the NC election for the candidates the developer believed would be more amenable to his projects.

It was also used to keep the "old guard" from having election competition.

This is reminiscent of the way certain States have legislated "voter ID" laws, demanding voters have several different kinds of ID in order to vote. One would think that voting should be made easier. After all, we want big turnouts, right? I guess the adage, “be careful what you wish for" -- in other words, we want large turnouts but are they always desirable? The Republican Party is enjoying record turnouts but not exactly with the outcome they desire.

I have observed that having these types of restrictions doesn't encourage involvement...it chases people away.

On the subject of elections, I attended a gathering of people discussing "Why You Vote the Way You Do,” facilitated by Leon Williams of Sherman Oaks, who has been holding Salons for the past twenty-five years. wice a month he has different speakers come and attend his "Conversations with Leon.” I asked the question, "Do you know who is running for office locally?" I followed that up with, "Do any of you attend your Neighborhood Council Meetings?”

After all, these were intelligent, informed people who obviously cared enough to come out on a rainy evening and discuss politics. Only one person knew the name of his Councilmember. Another couple mentioned that they had tried to volunteer for their local NC but apparently the Board was not terribly welcoming.

I am curious if the online voting system will be successful. Some States have already incorporated it into their election process. California, with only one Tuesday election date, really needs to investigate online voting.

Handel said that some of the NCs who have experienced great turnouts have done an effective job in reaching out to their stakeholders. The NCs that have not even sent out a single mailer asking for candidates and promoting the election site have only themselves to blame for a poor turnout.

City Council President Herb Wesson placed the Neighborhood Councils under his rules committee almost a year ago. It would help if he would tackle some of the major issues affecting the operations of the Neighborhood Councils. He recently organized a task force to look at the issue of funding. Most of the people attending the first task force meeting wanted him to handle some of the other priorities as well.

The solutions are there...this is not nuclear science.

As always comments are welcome.

 

(Denyse Selesnick is a CityWatch columnist. She is a former publisher/journalist/international event organizer. Denyse can be reached at: [email protected]) Edited for CityWatch by Linda Abrams.

Bootleg Apartments: An Answer to LA’s Affordable Housing Crisis?

THIS IS WHAT I KNOW-There’s no question that the affordable housing crisis in LA is a major issue. Median rent grew 27 percent between 2000 and 2013 while household incomes for renters fell by 7 percent in the same period. Bootleg apartments or unpermitted rental units have formed sort of a black market economy -- until the units are discovered by housing inspections. Typically the landlord doesn’t have enough time to bring the units to compliance and in 80 percent of the cases, the tenants are evicted, which brings further challenges to the struggling renters.

Between 2010 and 2015, about 2,560 non-permitted units have been cited by City enforcement agencies and 1,765 of those have been removed. Only 201 (12%) were legalized by complying with the City’s building and zoning regulations. This has caused a net loss in the City’s housing creation.

Back in 2014, LA City Councilman Felipe Fuentes introduced motion CF 14-1150, seconded by Paul Koretz, that examines the consequences and logistics of a program that would legalize LA’s safe but unpermitted rental units. At first, the idea was supported by both tenant advocates and landlords but a new amnesty ordinance backed by the council brings far less enthusiasm from landlords. To legalize the units, the landlords must keep a specified number of units in the building affordable for a 55 year period.

Affordable housing mandates for both landlords and developers are often met with a preference to “just pay the fine” rather than lose out on income. The other issue is if the city will be able to actually enforce the ordinance.

Cities across the country, including West Hollywood and Santa Monica, have similar ordinances. The City of Santa Monica passed a law that permits owners to keep the unpermitted units as long as they meet a basic level of standards without having to meet current development standards like setback and density provisions. Parking requirements may be adjusted if the traffic engineer determines the parking situation is not feasible. Only 30 of about 484 units have actually been legalized since the passing of the ordinance, perhaps in part due to the lack of code enforcement procedures for citing illegal units, as well as the absence of a time limit. Santa Monica’s rent stabilization laws also prevent the units from being removed unless the unit is not habitable or cannot be made habitable.

Currently, the number of Angelenos who pay 50 percent or more of their incomes in rent is greater than in other cities. The problem is more pronounced for low-income renters but the housing shortage has also impacted middle- to upper-income renters, which impacts everything from traffic, air quality, jobs, and the quality of life for residents living in unsafe or overcrowded conditions.

Bootleg apartments in multi-unit buildings are constructed from converted rec rooms, storage rooms, or illegally subdivided apartments. If authorities find the unpermitted units, owners typically are given 30 days to remove the unit or legalize. However, the barrier towards legalization isn’t always building code compliance but more often planning and zoning codes, including density and parking.

One concern is that legalization could result in a rent increase or displacement without protections, which is why the council included the affordable housing mandate. The City Council recommends that renters of the unpermitted units aren’t evicted and are protected by any rent stabilization ordinances.

Motivating multi-unit building owners to convert the unpermitted units while providing affordable housing is a challenge, while maintaining a neighborhood’s livability is also a challenge. However, encouraging apartment owners to convert unpermitted bootleg apartments into viable living spaces seems to be one of the logical solutions to a significant and widespread problem.

The bootleg apartments in Los Angeles, as they exist, present problems because the city cannot verify life and safety standards or if the units are allowed under the zoning code. A successful program would allow for the preservation of safe, livable units while respecting the neighborhood character and habitability.

 

(Beth Cone Kramer is a successful Los Angeles writer and a columnist for CityWatch.) Prepped for CityWatch by Linda Abrams.

Lessons Learned from the Runyon Canyon Dispute? Time will Tell!

DEEGAN ON LA-The threats against an elected official were of enough concern to warrant extra security precautions. The overflow crowd was, by all accounts, hostile and angry. As the meeting unfolded, four distinct parties to the dispute emerged: the Hollywood Hills West Neighborhood Council and surrounding community members, Councilmember David Ryu (CD4), the Friends of Runyon Canyon, and the Department of Recreation and Parks. 

The verbal brawl and chaos at the Durant Library in Hollywood a few nights ago was prompted by a proposal for the donation of a basketball court, embedded with a corporate sponsor’s logo, planned for installation in Runyon Canyon Park. 

Who knew you could purchase corporate sponsorship rights for spaces in our city’s parks? Or that there was a city department that specializes in matching up private enterprise with public entities expressly for this purpose? Or, that non-profit corporations have been created to work these private-public partnerships to support underfunded city projects? 

Despite these mysteries, everyone there knew for sure that obtaining community buy-in, especially a review by the local neighborhood council, (in this case the Hollywood Hills West Neighborhood Council) would have been more than politic…it was mandatory. 

Those who overlooked that piece of the review process – meaning, all three on the other side of the issue -- ruefully admitted their omission. 

“What was missed was consulting with the Hollywood Hills West Neighborhood Council. The City didn't communicate as well as it could have. That’s where the frustration came from, and rightfully so,” said a spokesperson for Councilmember David Ryu (CD4.) 

The Councilmember apologized to the group at the meeting, but also expressed concern about the tone and “hostile language” directed toward him and his staff, the Department of Recreation and Parks staff, the Friends of Runyon Canyon Park, and the neighborhood council. 

Don Andres, VP of the Friends of Runyon Canyon Park, weighed in, saying, “Unfortunately, we did not solicit input from the Hollywood Hills West Neighborhood Council, and we should have done that, and we apologize for that. We made a false assumption that this had been communicated.” 

“Going forward, the Hollywood Hills West Neighborhood Council will have a person on their board designated as park liaison. It’s a great lesson learned,” said Vicki Israel, Assistant General Manager of the Partnership and Revenue Branch at the Department of Recreation and Parks. 

The cause of the heated dispute is a plan signed off on downtown that arrived as a surprise up in the hills. It would allow a clothing manufacturer to provide funds to build a basketball court in the middle of Runyon Canyon Park and “brand” it with its corporate logo. 

The corporate donor has also offered to provide Rec and Parks with maintenance funding on an annual basis for a period of ten years. In purely abstract philanthropic terms, this $260,000 donation would be called a restricted gift plus an endowment: a very solid “get.” The donor would also expect a tax write-off. 

The philanthropic exchange is very unbalanced right now because, while the donor may be satisfied, the community-as-recipient is not. 

Councilmember David Ryu says he will speak to the City Attorney, who would need to be the one to unwind what sounds like a “done deal.” Others murmur about litigation. It’s a mess. 

All groups involved -- the Hollywood Hills West Neighborhood Council, David Ryu, the Department of Recreation and Parks, and the Friends of Runyon Canyon – must figure out a way to provide the community with something they can honor instead of vilify. 

Not only did the community object to the basketball court but they were also concerned with the “commercialization” of the park. Anastasia Mann, President of the Hollywood Hills West Neighborhood Council, said, “People see Runyon Canyon as a precious wilderness park... As their community park, despite the influx of out-of-the-area visitors. The community members present reflected 99% opposition to building a basketball court in the middle of the park. There are stakeholders now discussing a lawsuit and/or injunctions to halt the building of the basketball court.” 

The councilmember’s spokesperson stated, “David Ryu will consult with the City Attorney’s Office in regards to the future of the basketball court project and possibly scaling the logo back.” 

How does Runyon Canyon Park fit into this puzzle? Who are the Friends of Runyon Canyon”? And what is this unit at Rec and Parks that cultivates corporate sponsorships and partnerships? 

A few facts and stats can help illustrate the scope and popularity of Runyon Canyon Park. This public gem, a site for which Councilmember David Ryu and the Department of Recreation and Parks are “public stewards,” is a 136-acre urban park, including a 90-acre off-leash dog park, an open space turf area and numerous hiking trails -- all situated in the wilderness of the Hollywood Hills. The park is managed by the Los Angeles Department of Recreation and Parks; it has two main entrances, off Fuller Avenue in Hollywood at the bottom of the park and off Mulholland Drive at the top of the park. 

The Friends of Runyon Canyon, a private 501c-3 non-profit support group, surveyed the park visitors in April/May 2015 and found that Runyon has a diverse set of users with diverse needs. It’s a very popular regional park with about 35,000 visits per week (can be multiple visits per day by one person), 1.8 million visits per year, and 300,000 dog visits per year. Visitors from the surrounding zip code (90046) make up 20% of the visitors, while 25% are infrequent visitors or tourists. Overall, 85% of visitors come from greater LA. About one-third of its visitors are under 39 years of age, and about one-fifth are over 50 years old. 

For all that went wrong -- a massive communications breakdown that shut out community input – there is an upside. With community participation and buy-in, there’s a chance to create a model program and vision for Runyon Canyon Park that can give the park sustainability, benefiting the local neighborhood and its extended community of park users – all in an era of lowered financial expectations that has meant doing more with less, unless, of course, you have some friends. 

But “friends” are just what the city and the community need right now. However, like any new relationship, everyone must vibrate on the same frequency. That means the Hollywood Hills West Neighborhood Council, Councilmember David Ryu, the Friends of Runyon Canyon, and the Department of Recreation and Parks must all get in sync and come to an agreement. 

Summing up the current state of the relationship and the challenges facing it, Hollywood Hills West Neighborhood Council President Anastasia Mann said, “The Friends of Runyon Canyon are nice, good, dedicated people, who have worked hard and mean well, who love Runyon Canyon and with whom HHWNC has worked and supported emotionally and financially since their inception as a 501c charitable organization. But, because of recent circumstances, if FORC wants to be trusted and therefore continue to raise money to support the park, they should be willing to take to heart the opinions of the local stakeholders, their passions, and their fears, as hard as it may be, without judging them antagonistically.” 

Mann continued, “Sadly, the situation has resulted in some damage within the local stakeholder base to FORC's credibility due to their acknowledged lack of transparency about the corporate sponsorship of a basketball court in Runyon, the story behind the acquisition of the sponsorship, as well as the legal precedent it sets for the future. Legitimate questions were raised about the possible future use of the ball court site for publicity, charity events, impact on wildlife, etc. What angered people the most was the apparent avoidance of proper public disclosure, therefore input, as well as the lack of any environmental impact study (CEQA).” 

“Our very engaged community here is upset that there was no proper publicly noticed process until Monday night's meeting by HHWNC at which time they were told it is "too late" to turn back. That anger seemed to blur anyone's willingness to participate in a discussion of the pros and cons of any aspect of the professionally presented proposed "Vision Plan”, added Mann. 

Now, because they were overlooked in the initial process, the neighborhood council and the community actually have an advantage in round two. As tempers cool down and all sides prepare for an upcoming town forum on the topic, neighbors can be at the center of attention and can possibly leverage their influence for a better result than offered in the original plan. “Going forward, there will be town halls with CD4, the community, the Neighborhood Council and us, hopefully for a date very soon in May,” Friends of Runyon Canyon VP Don Andres told CityWatch. 

The Friends of Runyon Canyon have been working on a Vision Plan for the park that extends beyond the current basketball court and logo dispute. 

“The park has many challenges and needs so much infrastructure improvement,” stated Don Andres, VP of the Friends of Runyon Canyon. He continued, “If it remains unsafe, it may ultimately face closure. To ensure this wilderness area remains, we must focus on infrastructure, and so we have commissioned a landscape architect to do a Vision Plan, to get an independent view of a very large regional park in the middle of neighborhoods. What is it that we should do with this park, independent of any individual bias, or parks and recreation, and be objective? 

“This Vision Plan is a conceptual set of ideas of what the park could be, not a blueprint for implementation. It focuses on a park improvement and preservation plan. How to deal with erosion control, run-down trails, DWP lines, storm water runoff, and increased public safety. LAFD frequently rescues hikers, so we must consider the public safety aspects of the overall park plan.”

Amplifying the needs, Andres continued, “We need more water fountains, better trails, repair of the east trail steps. We have a diverse set of users who don't understand some of the potential dangers of the park. We also have to know how to make park land safe, to restore it to a level that it wouldnt erode away, and understand the importance of maintaining the sustainability of the land. 

“Given the diversity and enormous number of people visiting Runyon and the related neighborhoods, the only real solution is a compromise and balanced approach”, concluded Andres. 

Speaking about the Vision Plan, the Ryu spokesperson pointed out that, "80% of visitors are from outside the Hollywood area. We must consider the overall infrastructure needs of the park to make it safe for all users. On Monday, we heard from many residents who live near the park, but it's also important that we hear from as many park users as possible." 

The city has opened a new branch at the Recreation and Parks Department to identify sponsorship possibilities and to cultivate prospective sponsors. The beneficiary project receives cash, and if processed through a 501(c-3) such as Friends of Runyon Canyon, the donor (such as this clothing manufacturer) receives a significant tax write-off; donors get both branding and promotion as well as a tax-deduction. That's a lot. Ideally, it would be a very discrete acknowledgement, handled appropriately, maybe on a side fence, and without commercial slogans or other marketing overtones. This requires very careful monitoring. 

Vicki Israel, Assistant General Manager Partnership and Revenue Branch at the Department of Recreation and Parks, explains how this unique program works: “With budget reductions we cannot do it alone anymore, and have started creating public-private partnerships with the Department of Parks and Recreation. They are necessary and we seek them. Our naming policy and a sponsor recognition policy, that create the guidelines and policy to continue to reach out and obtain partners, were approved by the Board of Park Commissioners and the City Attorney. 

“One of our partners is the Friends of Runyon Canyon that came to the Department of Parks and Recreation about their plans. We created a MOU (memorandum of understanding) that we took to the Board of Park Commissioners as public process. When it was approved, the Friends of Runyon Canyon went out to do fundraising on behalf of Runyon Canyon. They dont want commercialization.” 

When asked if it was accurate to say the basketball court donation was "facilitated by the Friends of Runyon Canyon,” FRC’s Don Andres told CityWatch, “Not really. That implies much more Friends involvement than what really happened.” 

Unknown, or yet-to-be-revealed, is how this project got launched to start with -- by whom and exactly when? How did the San Francisco area-based donor know to go to an unheralded department in the city bureaucracy, if it was not with the navigation that FRC and their MOU with the department could facilitate? Now that the idea has become almost toxic, nobody seems to want to own the origin of the plan. The donor is a voice still to be heard from, although it may wind up wishing it never got involved, no matter what its good intentions. The public relations backlash could hurt more than the corporate branding in the park could help. But if the donor pulls out, that issue might dissolve. 

This is a matter that needs more (hopefully civil) conversation and clarity to reach a resolution. The neighborhood council has undeniable parity as an interested party, and the councilmember has stepped in. There must be an agreement between them. 

For now, considering where this dispute is taking place, let's let a Hollywood icon have the last word: “What we've got here is failure to communicate.” - Paul Newman, from the 1967 movie, “Cool Hand Luke.”

 

(Tim Deegan is a long-time resident and community leader in the Miracle Mile, who has served as board chair at the Mid City West Community Council and on the board of the Miracle Mile Civic Coalition. Tim can be reached at [email protected].) Edited for CityWatch by Linda Abrams.

LA’s Economy: Hispanics in Los Angeles are Billion Dollar Spenders

LATINO PERSPECTIVE-A recent study released by Beacon Economics for the Los Angeles Latino Chamber of Commerce found the number of Hispanic households earning between $100,000 and $200,000 in 2014, jumped 10.2 percent increase from 2000, leading to $72.4 billion in spending across heavily-marketed consumer categories, including electronics, food, and clothing. 

According to Theresa Martinez, the Chamber’s chairman, Latinos are a consumer powerhouse. This study does a remarkable job at really looking at and quantifying the enormous “spending power" of Latinos in Los Angeles. 

The increase in Latino aggregate spending to $72.4 billion has been driven by significant demographic and income growth. This has allowed Latino consumers to outspend other ethnic groups in most consumer segments. 

The Latino community in Los Angeles County that continues to grow and spend its dollars well over other ethnic groups is creating opportunity for many businesses. 

Latinos accounted for a large proportion of spending in various categories, including food at home, laundry and cleaning supplies, cellular phone service, audio and visual equipment and used cars and trucks. 

Spending on housing by Latinos totaled $29 billion and $10.9 billion on food in 2014. In comparison, African American, Asian and other non-white households spent a combined $8.5 billion on food that year. 

Latino spending on eggs, poultry, beef, and pork combined is estimated at $1.3 billion. Approximately $11 billion in transportation spending in 2014 coming from Latinos included purchases of new and used automobiles. If corporate America is looking to invest in the most dynamic Latino market in the United States, the findings of this study clearly suggest that they should bring their marketing and advertising dollars to the City of Angels, the Chairman argues. 

Mrs. Martinez also said that by isolating these numbers in the county, marketers now have a snapshot of Latino consumer buying power in Los Angeles, which she believes is the most important Latino market in the country. 

Advertising firms aren't the only ones who can potentially benefit for the ever-growing Latino population. Presidential candidates are courting the Hispanic vote like never before, creating bilingual TV ads and courting Latino leaders to endorse them in potential swing states. 

Latinos participating in the 2016 presidential election are expected to hit the ballot box in record numbers, particularly in response to proposed immigration reform views shared by Republican candidates. 

A recent USC Dornside/ Los Angeles Times poll found California Republicans are split on who to vote for, siding with party front-runner Donald Trump over Texas Sen. Ted Cruz by a 37-30 margin.

Immigration is a hot topic among many Latinos in the Golden State and the hardline anti-immigration reform stance some have taken has softened over time. In the Chamber survey, about 65 percent said undocumented immigrants should have a chance to stay, compared to 16 percent who said they should leave the country outright. 

Latinos in Los Angeles are an integral part of the economic engine of the city, county, and the state of California. Immigrants documented and undocumented are part of this equation as well. Let’s never forget that.

 

(Fred Mariscal came to Los Angeles from Mexico City in 1992 to study at the University of Southern California and has been in LA ever since. He is a community leader who serves as Vice Chair of the Los Angeles Neighborhood Council Coalition and sits on the board of the Greater Wilshire Neighborhood Council representing Larchmont Village. He was a candidate for Los Angeles City Council in District 4. Fred writes Latino Perspective for CityWatch and can be reached at: [email protected].) Edited for CityWatch by Linda Abrams.

 

Where’s My Democratic Party - Especially in California?

EASTSIDER-Speaking as a 3rd generation Californian, I finally just couldn’t take the babblings of the talking heads today as they cheerfully said how Bernie should pack it up and go home – that he would have, except for the fact that he has bags of money and got lucky in six of the last seven states, including Wisconsin. 

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What will Angelenos Feeling-the-Bern Do After November 9?

SORTING OUT ELECTION SCENARIOS-Senator Bernie Sanders has repeatedly emphasized the importance of mass movements as an essential instrument for social, political and economic change in the United States. For example, here is a typical Bernie quote from a recent CNN interview, “The only way we bring about real change in this country, which represents the needs of the middle class and working families, is … a mass movement, and that's what we are trying to create and are succeeding in creating right now." Bernie has also repeatedly argued that a Sanders administration could only implement his campaign platform with the strong, sustained support from an external mass movement. 

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