After months of delay, the Los Angeles County CEO’s office released a long-awaited fiscal analysis of East Los Angeles, including a feasibility study on whether the unincorporated area could become a city or special district.
The report, published Monday, concluded that cityhood remains financially unviable for the majority-Latino region of nearly 120,000 residents.
Prompted by growing community interest and a motion introduced by L.A. County Supervisor Hilda Solis, the report aims to provide a financial snapshot of the region, including the county’s investments into the area, revenue and expenditures, and options for governance.
Here’s what the report says:
Cityhood remains out of reach for East L.A.
The fiscal analysis concludes that East L.A. would face a nearly $28 million annual spending deficit if it were to incorporate as a city. The cost to transfer county services to the city would far exceed the revenue generated, especially from property taxes, which is the largest single source of revenue for most California cities, the study says.
“Based on our updated financial analysis, an incorporated City of East L.A. would not have access to a commensurate level of community serving resources and residents could experience a decline in available services,” the report reads.
Key financial findings
- Sales tax revenue for East L.A. in fiscal year 2022-2023 was $5.7 million, far lower than comparable cities like El Monte ($31 million) and Monterey Park ($18.6 million).
- Police services in East L.A. alone cost the county $36,421,000 annually.
- Parks and Recreation services for the community cost $6,445,601 annually.
Additionally, the assessment also notes that the incorporation process in Los Angeles County would require review and approval from the Local Agency Formation Commission (LAFCO), a process that is long and complex, and can cost more than $5 million to produce a formal in-depth analysis.
A future for East L.A. governance
Efforts to incorporate East L.A. into a city have failed in the past, with one of the latest attempts failing in 2012 when LAFCO found that the unincorporated area would not be able to financially sustain cityhood.
Instead of cityhood, the County CEO’s office recommends forming a Municipal Advisory Committee (MAC), which would act as a conduit between East L.A. residents and the County Board of Supervisors.
In a social media post, Solis announced plans to hire a consultant to provide multilingual and multicultural community outreach, aiming to inform residents and stakeholders about the report and “assess the creation of a Municipal Advisory Committee (MAC) or Town Council that reflects East Los Angeles’ diverse voices.”
A MAC offers residents a way to engage in governance in their community, directly advise the board of supervisors about their direct needs and make recommendations regarding services, programs, and other matters in the unincorporated areas. The board could also designate multiple MACs to support the East L.A. community in different service areas, such as street vending or encampment cleanups, according to the assessment.
Read the series:
Part 1: What to know about the latest effort to explore East L.A. cityhood
What is AB 2986? Who supports it, who’s against it and what comes next?
Part 2: Opinion: Should East L.A. become a city? Here’s what local leaders have to say
State Assemblymember Wendy Carrillo and County Supervisor Hilda Solis share their perspectives
Part 3: Cityhood or not, East L.A. residents want more transparency
How a quest for cityhood transformed into a fight for representation on the Eastside