Overview

Measure ER is a proposed initiative that seeks to increase L.A. County's general sales tax by half a percent for a duration of five years. This measure aims to address the financial challenges faced by hospitals and clinics due to significant federal cuts to Medi-Cal, California's Medicaid program.

If approved, the measure is expected to generate approximately $1 billion annually to support healthcare providers reliant on Medi-Cal funding for patient care.

Key details

  • Measure ER proposes a sales tax increase from 9.75% to 10.25%.
  • The tax hike would last for five years.
  • It aims to generate about $1 billion each year for healthcare providers.
  • The measure is designed to mitigate the impact of federal cuts to Medi-Cal, which are projected to cost L.A. County health departments around $800 million annually.
  • Approximately 3.8 million residents of L.A. County were enrolled in Medi-Cal at the beginning of the year.
  • About 1.1 million Medi-Cal enrollees could lose their coverage by 2028 due to federal changes.
  • The L.A. County Department of Health Services expects a revenue loss of $700 million annually by 2028-2029.
  • Measure ER was introduced by Supervisor Holly Mitchell and supported by a coalition including St. John’s Community Health.
  • The measure is on the June primary ballot, as it was believed to have a better chance of passing than in the November election.
  • The L.A. County Board of Supervisors voted 4-1 to place the measure on the ballot.
  • Supervisor Kathryn Barger voted against the measure, citing concerns over the existing tax burden on residents.
  • Measure ER is classified as a general tax, meaning the funds will go into the county's general fund without a specific earmark.

Context

The proposed tax increase comes in response to federal cuts enacted under the Trump administration, which significantly affect the funding available for healthcare services in the county. As Medi-Cal funding decreases, the potential for service reductions, layoffs, and closures of healthcare facilities increases, prompting the urgent need for additional revenue.

What happens next

Voters will have the opportunity to decide on Measure ER during the upcoming June primary election. If approved, the sales tax increase will take effect, providing critical funding to help offset the financial challenges faced by healthcare providers in L.A. County.

What we don't know yet

Details regarding the specific allocation of the funds generated by Measure ER and the potential impact on individual healthcare services have not been confirmed.