LA WATCHDOG--Since California is not a battleground state, we have been spared from many of the inane ads for Hillary and The Donald.  But that is not to say we are off the hook as an estimated $400 to $500 million will be spent on the State’s 17 ballot measures by powerful special interests trying to convince us to reject or approve selected ballot measures. 

Of the 17 November ballot measures, three ballot measures are attracting a substantial portion of cash: Proposition 56 (Cigarette Tax), Proposition 61 (Prescription Drug Pricing), and Proposition 55 (the extension of the “temporary” Soak the Rich Income Tax Surcharge). 

Rather than succumb to barrage of ads, we should tell the big money special interests to take a hike, to buzz off, sending a loud and clear message that we are not for sale to the highest bidder, especially when they bombard us with many misleading advertisements. 

As such, both Proposition 56 (Cigarette Tax) and Proposition 61 (Prescription Dug Pricing) deserve a YES vote as Big Tobacco and Big Pharma have spent over $150 million into ads opposing these two ballot measures.  

On the other hand, Proposition 55 (Soak the Rich Income Tax Surcharge) deserves a NO vote as the California Teachers Association and the California Association of Hospitals have sunk over $55 million into this ballot measure that is betrayal of our trust and not in the best interest of the State and its economy. 

YES on 56, the Cigarette Tax 

If voters approve this initiative sponsored by the American Cancer Society, taxes on cigarettes will increase by $2.00 a pack.  This economic signal to the market will discourage people from either continuing or taking up this nasty habit that costs us billions in healthcare costs. 

The expected haul of $1.4 billion in the first year (which will decline over time as fewer butts are consumed) from this new tax will be allocated primarily to funding health care for low-income Californians. 

But Big Tobacco (primarily Philip Morris and RJ Reynolds) has “invested” over $66 million to defeat this measure, making numerous misleading claims that this tax will benefit special interests (the medical industry) and deprive schools of much needed money.  But these claims have been debunked by numerous credible sources, including our Los Angeles Times which endorses this proposition.

While many people oppose ballot box legislation, this initiative was the result of the failure of the Legislature to pass tax increases because our elected officials were bought off by generous campaign contributions (or threats) from the tobacco industry and their lobbyists.  

YES on Proposition 61, Prescription Drug Pricing 

Once again, our cowardly legislators have failed to represent their constituents as they have placed the profits of the pharmaceutical industry and their political careers and campaign war chests above our best interests.  

In this case, the Legislature’s failure to pass laws that would increase transparency into the rapidly increasing prices of prescription drugs has prompted an initiative led by the Aids Healthcare Foundation (“AHF”) that will prohibit the State of California from buying any prescription drug at a price greater than the lowest price paid by the Department of Veteran Affairs. 

While AHF has spent about $15 million placing this initiative on the ballot and purchasing airtime, this amount is dwarfed by the $87 million spent to date by pharmaceutical companies.  And the industry is expected to dump considerably more cash into its efforts to defeat this measure, with some expecting expenditures of at least $100 million. The Los Angeles Times, which opposes this measure, raised a number of valid points as to why we should vote NO.  But its solution to “fast rising drug prices” is a comprehensive, national solution that addresses competition, the speedy approval of new drugs, the role of federally funded research, and the development of new insurance models is not going to happen without prodding from the likes of AHF and the voters. 

By voting YES on 61, we will send a message to Sacramento and the international drug companies that they need to get their asses in gear and develop a comprehensive policy that is acceptable to the voters of California. Otherwise, nothing will change and we (and our wallets) will continue to be sitting ducks for Big Pharma.  

NO on Proposition 55, the Soak the Rich Income Tax Surcharge 

In 2012, 55% of California’s voters approved Proposition 30.  This measure authorized a “temporary” surcharge on higher income Californians to help plug the State’s budget deficit.  And now that the State’s revenues have increased by almost $50 billion to almost $170 billion, there is no need to extend the Soak the Rich Income Tax Surcharge beyond its 2018 expiration date.  

However, the California Teachers Association and the California Association of Hospitals and Health Systems are leading a $56 million campaign to extend this surcharge for another 12 years. They are also supported by a slew of elected officials, organizations that rely on the State’s cash, and public sector unions that are addicted to our cash and who have no problem betraying the promises that were made in 2012. 

While this surcharge will produce an estimated $7 billion a year, it also increases the State’s dependence on the income tax derived from wealthy Californians.  But this places the State’s finances in a very precarious position, especially when the stock market tanks, capital gains disappear, and incomes shrivel, resulting in significantly lower tax revenues and massive budget deficits like the State experienced during the Great Recession. 

This is why the Los Angeles Times opposes Proposition 55, calling for the Legislature to produce a more comprehensive overhaul of the State’s budget process. 


Rather than being bamboozled by Big Tobacco, Big Pharma, and the State’s public unions, we have the opportunity to see through their misleading ads and vote for what is in our best interests and not follow the lead of our Elected Elite who have their own personal agendas. 

Vote YES on 56, Vote YES on 61, and Vote Hell NO on 55. 

(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and is the Budget and DWP representative for the Greater Wilshire Neighborhood Council.  He is a Neighborhood Council Budget Advocate.  Jack is affiliated with Recycler Classifieds --  He can be reached at:

– cw

LA WATCHDOG--Of the 24 ballot measures on the November ballot, only four are specific to the City of Los Angeles. And of these four, only one deserves a YES vote (RRR - DWP Reform), two deserve a NO vote (HHH - the $1.2 billion homeless bond and SSS – Fire and Police Pension Plans), and one deserves a HELL NO vote (JJJ - Build Better LA). (See Ballot Summaries below.) 

When determining how to vote, the first and most important question is whether you trust the proponents of the ballot measure.  And in the case of the City of Los Angeles, Mayor Eric Garcetti and the City Council have not earned our trust and confidence as they have not embraced the reform of our City’s finances.  They have ignored the excellent budget recommendations of the LA 2020 Commission, have refused to address the Structural Deficit where the increase in personnel expenditures (salaries, pensions, and medical benefits) exceed the growth in tax revenues, have passed on reforming the City’s two pension plans which are $15 billion in the hole, have failed to develop a plan to repair our streets and the rest of our failing infrastructure, and continue to bow to the wishes of real estate developers and billboard operators. 

NO on Proposition HHH, the $1.2 Billion Homeless Bond 

While our Enlightened Elite who occupy City Hall have told us that addressing homelessness is a priority, they have failed to make the average payment of $65 million a year a budget priority despite a $1 billion increase in City revenues over the last four years and another $600 million over the next four years.  Rather than continue with this $2 billion revenue grab over the next 30 years (including interest payments) through an increase in our property taxes, the City has the capacity to pay for the homeless bonds by eliminating their discretionary slush funds, reduce their bloated staffs, and discontinue the hundreds of millions in “giveaways” to international hotel operators and mall operators such as Westfield.  

The City has not developed a credible financial plan to fund the $2.8 billion gap between the $4 billion cost of 10,000 units of permanent supportive housing and the $1.2 billion in bond proceeds.  Nor has it addressed the over the top cost of $400,000 a unit.  Nor has it entered into a definitive agreement with the County which is considering a quarter cent increase in our sales tax ($350 million) to fund its service to the homeless. 

The concept of throwing cash at the homeless problem without a financial and operational plan does not pass muster, especially given the lack of meaningful oversight.  

For more information, see the CityWatch article, Los Angeles Must Resolve Its Homeless Crisis … This $1.2 Billion Taxpayer Ripoff is Not the Way to Do It.  

NO on Charter Amendment SSS, the Los Angeles Fire and Police Pension Plans 

If approved by a majority of the voters, Airport Police officers will be eligible to participate in the Los Angeles Fire and Police Pension Plans (“LAFPP”) instead of the less generous Los Angeles City Employees Retirement System (“LACERS”) plan.  But without real pension reform that addresses the billions of unfunded liabilities of both LACERS and LAFPP, this ballot measure does not deserve our support.   This scheme will also result in significantly higher pension contributions by the Airport and eventually its airline tenants.  

The Los Angeles Times urges a NO vote. Police Pension Measure SSS Raises Too Much Doubt to Support. 

HELL NO on Initiative Ordinance JJJ / Build Better LA Initiative 

The Build Better LA Initiative is a crude attempt by the Los Angeles County Federation of Labor to take advantage of the affordable housing shortage in the City of Los Angeles.  It would require real estate developers who request a zoning change or variance to include units of affordable housing in the development and to agree to the equivalent of a Project Labor Agreement.  While there has not been any detailed analysis of the financial impact of this measure on housing costs, preliminary estimates indicate that it would drive up costs by 30% to 40%.  This added expense will result in a transfer of money intended for affordable housing into the pockets of construction workers and their unions. 

This misleading, self-serving ballot measure will make affordable housing more unaffordable.  

The Los Angeles Times urges a NO vote.  Measure JJJ Could Make LA’s Housing Crisis Even Worse.   

For additional information, see the CityWatch article, Build Better LA Initiative: Affordable Housing Made More Unaffordable  

YES on Charter Amendment RRR, DWP Reform 

The major problem with our Department of Water and Power is City Hall.  Unfortunately, this charter amendment does not address the issue of Ratepayers being used as an ATM by Mayor Garcetti and the City Council.  Nor are there any major changes in the governance of the Department.  But it does allow for more efficient procurement and contracting, increased oversight by the Ratepayers Advocate and a newly created Water & Power Analyst that reports directly to the Board of Commissioner, and a more transparent process of appointing a new General Manager. It also requires the Department and the Board of Commissioners to prepare a Four Year Strategic Plan beginning in 2020 for consideration by the City Council and the Mayor. 

The major source of controversy is that this charter amendment begins the process that may lead to the Department establishing its own Human Resources Department for its 9,000 employees that is separate and distinct from the City’s Personnel Department and remove the Department from the City’s cumbersome civil service rules and regulations.  The City’s civilian unions are labeling this as a “power grab” because it would lessen their influence over the affairs of the Department and limit the transfer of City employees to better paying jobs at DWP.  But any major changes would require Council approval which would “undoubtedly prompt an epic political battle.” 

While this ballot measure is not the answer to our prayers, it is a step in the right direction. 

As a side note, City Council President deserves a pat on the back for ushering this ballot measure through the City Council.  And with his leadership, hopefully other meaningful changes will be implemented by the City Council. 

The Los Angeles Times in a very good editorial urges a YES vote.  




Ballot Summary / Question 


To provide safe, clean affordable housing for the homeless and for those in danger of becoming homeless, such as battered women and their children, veterans, seniors, foster youth, and the disabled; and provide facilities to increase access to mental health care, drug and alcohol treatment, and other services; shall the City of Los Angeles issue $1,200,000,000 in general obligation bonds, with citizen oversight and annual financial audits? 


Shall the Charter be amended to: (1) enroll new Airport peace officers into Tier 6 of the Fire and Police Pensions System; (2) allow current Airport peace officers to transfer into Tier 6 from the City Employees’ Retirement System (LACERS) at their own expense; and (3) permit new Airport Police Chiefs to enroll in LACERS? 


Shall an ordinance: 1) requiring that certain residential development projects provide for affordable housing and comply with prevailing wage, local hiring and other labor standards; 2) requiring the City to assess the impacts of community plan changes on affordable housing and local jobs; 3) creating an affordable housing incentive program for developments near major transit stops; and 4) making other changes; be adopted? 


Shall the Charter be amended to: (1) add qualification requirements, stipends and removal protections for DWP Board; (2) expand Board to seven members; (3) require DWP prepare four-year Strategic Plans for Council and Mayoral approval; (4) modify DWP’s contracting, rate-setting and other authority; (5) permit future alternatives to existing civil service standards for DWP employees through collective bargaining; and (6) require monthly billing?



(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and is the Budget and DWP representative for the Greater Wilshire Neighborhood Council.  He is a Neighborhood Council Budget Advocate.  Jack is affiliated with Recycler Classifieds --  He can be reached at:

– cw

LA WATCHDOG--On Tuesday, the Board of Water and Power Commissioners voted 4 to 1 to approve an above market, 10 year, $41 million lease of four vacant floors of subpar office space at Figueroa Plaza, a 615,000 square foot, City owned office complex located north of the downtown Central Business District.  

LA WATCHDOG--Mayor Eric Garcetti and the Herb Wesson led City Council are using the homeless issue to pick our pockets for almost $2 billion over the next 30 years in an effort to cover up their abject failure to make this unfortunate situation a priority in the City’s budget over the last four years. 

If Proposition HHH (Homeless Reduction and Prevention, Housing, and Facilities Bond) is approved by two-thirds of the voters, the City will issue $1.2 billion of bonds over the next ten years.  These funds, along with billions from politically wired real estate developers and other governmental entities, will finance the construction of 10,000 units of permanent supportive housing for LA’s homeless population at a cost as high as $4 billion.  

LA WATCHDOG--On September 28, Mayor Eric Garcetti issued his Fiscal Year 2017-18 Budget Policy and Goals to all of the General Managers of All City Departments. The goals include closing a projected $85 million deficit for the fiscal year beginning July 1, 2017, identifying over $40 million in new general funds to maintain the City’s current commitment to the homeless, and hiring 5,000 new employees by June 30, 2018 to restore services and replace retiring workers.   

This missive is focused on next year’s budget and does not address the long term reforms that are desperately needed to tackle the City’s Structural Deficit (where the growth in personnel costs exceeds the increase in revenues), the massive unfunded liabilities of its two unsustainable pension plans (estimated to be in the range of $15 billion based on a more realistic investment rate assumption), and the deferred maintenance on its infrastructure (estimated to be north of $10 billion). 

On October 4, the Neighborhood Council Budget Advocates (“NCBAs”)* delivered the following recommendation to Mayor Garcetti and the City Council.


Early White Paper Recommendation

The Neighborhood Council Budget Advocates (the “NCBAs”) urge the City Council and Mayor Eric Garcetti to implement the following recommendations of the LA 2020 Commission as part of its budget for the 2017-18 fiscal year: 

  • Create an independent “Office of Transparency and Accountability” to analyze and report on the City’s budget, evaluate new legislation, examine existing issues and service standards, and increase accountability. 
  • Adopt a “Truth in Budgeting” ordinance that requires the City to develop a three year budget and a three year baseline budget with the goal to understand the longer-term consequences of its policies and legislation. (Council File 14-1184-S2)  
  • Be honest about the cost of future promises by adopting a discount rate and pension earnings assumptions similar to those used by Warren Buffett.   
  • Establish a “Commission for Retirement Security” to review the City's retirement obligations in order to promote an accurate understanding of the facts. 

We request that the Budget and Finance Committee assign a Council File for each of the recommendations and agendize each of these items for its next meeting on October 17, 2016.  

The implementation of these recommendations will be the first step in addressing the City’s Structural Deficit, the massive unfunded liabilities of its two unsustainable pension plans, and the deferred maintenance on its infrastructure.  

The adoption of the recommendations of the LA 2020 Commission will result in increased transparency into the City’s complex operations and finances and begin the process of restoring Angelenos’ trust and confidence in City Hall and its elected officials.  

The NCBAs are making these recommendations prior to the 2017 Neighborhood Council Budget Advocates White Paper so that they will be an integral part of the upcoming fiscal year’s budget process.  

The NCBAs look forward to a timely response.



Stay tuned to see if Mayor Garcetti and the City Council are willing to implement meaningful reform or will it be business as usual, kicking the can down the road and dumping tens of billions in unfunded obligations on the next generation of Angelenos. 




*The Neighborhood Council Budget Advocates are the elected to represent the charter authorized Neighborhood Councils.  Their role is to explore, research, study, seek input, prepare and present the concerns and interests of the communities of the City of Los Angeles ("City") about the use of City funds, City revenue collection, City budget and budget allocations, efficiency of City government, City finances, City financial obligations and other such concerns and related to financial matters of the City to the Mayor and City Council.  

Join the discussion: 


(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and is the Budget and DWP representative for the Greater Wilshire Neighborhood Council.  He is a Neighborhood Council Budget Advocate.  Jack is affiliated with Recycler Classifieds --  He can be reached at: – cw


LA WATCHDOG--Mayor Eric Garcetti and his budget team are putting a full court press on the Board of Water and Power Commissioners to approve an above market, 10 year, $41 million lease for four vacant floors of office space at Figueroa Plaza, a two tower, 615,000 square foot City owned complex located north of the Central Business District in DTLA.  (Photo above: Sculpture by Terry Allen. The bronze statue is located in Downtown L.A. at 7+FIG Plaza, on the corner of 7th and Figueroa Street, outside the corporate offices of Ernst Young) 

But this deal, like the previous 10 year, $63 million lease for six vacant floors that was proposed in June, does not pass the smell test because this above market lease is not in the best interests of the Department of Water and Power or its Ratepayers. 

Which leads us to the question of whether the five Commissioners, led by President Mel Levine and Vice President Bill Funderburk, will stand up for the interests of the Department and the Ratepayers or will they bow to the pressure from Mayor Garcetti and his budget team who are looking to balance the City’s budget on the backs of the Ratepayers? 

Figueroa Plaza is not considered a desirable location for law firms, investment banks, commercial banks, consulting firms, or other professional organizations that occupy Class A space because of its poor location north of the Central Business District.  In addition to being out of the way, this older building has a poor reputation for maintenance, services, and amenities.  This is not helped by rent roll dominated by government employees.  

Yet the City wants our Department of Water and Power to pay Central Business District Class A rents for this subprime space.  At the same time, the City wants DWP to pony up $9 million for tenant improvements, an expense that is usually born by the landlord, in this case, the City of Los Angeles.  

From the Mayor’s perspective, in the first year of the lease, the City will receive $3 million in rent and “save” $9 million in tenant improvements.  This $12 million swing will help the City close its projected $85 million budget deficit for the upcoming fiscal year.  

The Department maintains that it needs this additional space to accommodate 700 new employees.  But without a well thought out Space Utilization Plan for its 9,576 employees, an 8 to 10 year lease is inappropriate, especially given its above market cost.  

Any space plan would need to address the updating of DWP’s 50 year old historic headquarters building located across from the Music Center in downtown Los Angeles.  But this is problematic as IBEW Local 18, DWP’s domineering union, will assert jurisdiction over all the work at overtime rates, doubling the cost and the time to completion.  This will cost Ratepayers an additional $150 to $200 million.  

The question has also been raised whether the IBEW and Union Bo$$ d’Arcy would claim jurisdiction over the work at Figueroa Plaza.  

At its meeting on September 20, the Board of Commissioners discussed the proposed $41 million lease in closed session.  When the $63 million lease was on the agenda in June, the Board deferred the matter until a later time.  As a result, there has not been a public discussion or any outreach involving this controversial lease whose main beneficiary appears to be the City, not DWP or the Ratepayers. 

The Department has prepared a 229 page memo outlining this transaction. This includes a 161 page report that justifies the lease. But several experts, including potential tenants and their representatives, have discounted this report stating it was “made as indicated” and does not reflect the real rental market. 

Will the Commissioners conduct an open hearing on this above market lease?  Will the Commissioners demand that DWP prepare a Space Utilization Plan before entering into this above market lease?  Will this study include many different alternatives, including selling the DWP headquarters and moving to an area that would benefit from the economic development?  Will the Commissioners demand that the Department update its Personnel Plan to reflect the addition of 700 new employees?  

In other words, will the Commissioners act in the best interests of the Department and the Ratepayers and tell the Mayor and his budget team to buzz off?

(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and a member of the Greater Wilshire Neighborhood Council.  Humphreville is the publisher of the Recycler Classifieds -- He can be reached at:

  • See also:

DWP Deserves ‘Free’ Rent at Fig Plaza

The Fig Plaza Stick Up: Ripping Off DWP Ratepayers for $40 Million

--Exposed! City Overcharging DWP Millions on Downtown Fig Plaza Rent



LA WATCHDOG--Many believe that California would be better off if we sent Attorney General Kamala Harris to Washington to succeed Barbara Boxer, the 75 year old “junior” senator from California.  But then again, is it fair to the rest of the country to stick the nation with the highly partisan Kamala Harris when Loretta Sanchez is the more qualified candidate? 

Kamala Harris’ fatal flaw is that she is a staunch opponent of pension reform.  

During the last two years, she has authored unfavorable and biased summaries for two bipartisan ballot measures that would have reformed California’s unsustainable pension plans.  Pension reform is the most important financial issue facing all levels of government as ever increasing pension contributions are required to cover the estimated unfunded liability of up to $500 billion. But these growing contributions are crowding out basic services such as public safety and the repair of our infrastructure as well as progressive initiatives involving education, affordable housing, and services to the homeless. 

This has resulted in numerous ballot measures for new taxes which, despite their stated use, are really going to fund the upside down pension plans.  

But rather than endorsing pension reform, Harris sold out to the campaign funding leadership of the public unions who are vehemently opposed to any reform of the very generous pension plans.  As a result, Harris has benefitted from significant cash contributions to her campaign war chest.   

Obviously, Harris did not get the memo from Rhode Island Governor Gina Raimondo that “you can’t be a progressive and be opposed to pension reform.” 

Ever since Harris was elected Attorney General in 2010, she has used her office as a stepping stone for higher office.  Over the years, she has been gallivanting around the country, spending hundreds of thousands of dollars on first class travel, five star hotels, and limousines and hitting up the usual out of state suspects for campaign donations. 

She has also used her office to reward her campaign contributors.   In 2015, Harris placed so many conditions on Prime Healthcare’s acquisition of the money losing hospitals owned by the Daughters of Charity that the buyer walked away from the transaction.  According to subsequent litigation, it was alleged that Harris was doing the bidding of the SEIU which was in a labor dispute with Prime Healthcare.  

No wonder the SEIU has been so generous to Harris’ campaign war chest.  

Harris has been so busy running around the country raising money and planning her next campaign that her office has suffered from the lack of organization and leadership and high turnover.  Her office has failed to implement or follow through on numerous initiatives such as gun control and criminal justice. But that has not stopped her from claiming credit for the work of others as was the case with the national mortgage settlement that was spearheaded by the Attorney Generals in New York and Delaware.  

Sanchez, on the other hand, has developed a reputation over her twenty years in House of Representatives as a legislator who can work in a bipartisan manner, much like Senator Diane Feinstein who has been an effective proponent for California. She has the endorsement of 17 of the State’s Democratic Congressional representatives, almost double the number that are supporting Harris.  

Sanchez also has a strong working knowledge of immigration, a very important issue to Californians, as she is the co-chair of the Immigration Task Force, a member of the Hispanic Caucus, and the daughter of hard working immigrants who achieved the American Dream. 

She has an excellent understanding of the water issues facing the State, having worked on matters involving conservation, groundwater, the Salton Sea, and other complex problems facing Orange County and Southern California. 

She is a ranking member of the House Armed Services Committee, but voted against the Iraq War, and the House Homeland Security Committee.  

Without doubt, Sanchez, an MBA and a financial analyst in the private sector before she upset B1 Bob Dornan in the 1996 election, is familiar with the federal budget, a complex issue that impacts all Californians. 

While Sanchez and Harris are both Democrats, we have the choice between Harris, a San Francisco ideologue who has derailed pension reform in return for union campaign cash, or Sanchez, a Southern Californian and a seasoned legislator with private sector experience who has demonstrated that she can work in a bipartisan manner to get things done. 

While Harris is leading in the polls, Sanchez has the unique opportunity to upset Harris by putting together a coalition of Hispanics, moderate Democrats, independents, and Republicans. 

Viva Sanchez.  

(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and a member of the Greater Wilshire Neighborhood Council.  Humphreville is the publisher of the Recycler Classifieds -- He can be reached at:


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