Despite Mayor Victor M. Gordo’s public support, a majority of Pasadena City Councilmembers Monday night expressed reluctance to endorse a proposed Los Angeles County half-cent sales tax measure aimed at backfilling federal healthcare cuts, instead directing staff to return April 13 with a detailed financial analysis before the city takes a position ahead of the June ballot.
The item, presented for information only by the Legislative Policy Committee, drew pointed questions from Councilmembers concerned that Pasadena residents would send an estimated $22 million annually to the County while receiving only a small fraction in return. The council voted to direct staff to research the measure’s implications and report back.
The LA County Essential Services Restoration Act would enact a half-percent general sales tax for five years, generating approximately $1 billion annually countywide to offset federal funding losses. If approved by voters in June, it would raise Pasadena’s combined sales tax rate from 10.5% to 11%. State legislation — AB 1768, introduced Feb. 9 by Assembly Member Bryan — would authorize the County to exceed the existing 2% cap on local transactions and use taxes.
Councilmember Steve Madison, who chairs the Legislative Policy Committee, led the skeptical questioning. He noted that under the measure’s terms, 1% of total revenue — roughly $10 million per year — would be split between Pasadena and Long Beach, the only two cities in LA County that operate their own public health departments.
Madison argued that staff’s estimate that Pasadena would receive one-third of that allocation was “overly optimistic,” noting Long Beach is nearly four times Pasadena’s size and operates a health department budget of $272 million compared to Pasadena’s $20 million.
“So we’d be paying $22 million and getting back $2 million,” Madison said, calculating a more realistic split. He also raised concerns about the regressive nature of sales taxes, which disproportionately affect lower-income residents.
Councilmember Gene Masuda said he could not support the measure because “it hurts Pasadena more than it helps,” pointing to the city’s own health and housing departments.
Councilmember Tyron Hampton expressed similar reservations, citing the prospect of a 21% increase in utility rates for power over the next three years and the rising cost of living. “I wouldn’t be in favor of a tax that is giving money to the County and then we’re hoping that we’re going to get some of it back,” he said.
Councilmember Justin Jones offered a more sympathetic view, noting that roughly 27,000 Pasadena residents — about 19% to 20% of the population — are enrolled in Medi-Cal and stand to lose access to affordable healthcare if federal cuts go forward. “Whether it’s this measure or something else, we have to find a way to fill in the gap,” Jones said, though he supported the motion for further staff analysis. Gordo later specified the Medi-Cal enrollment rate at 19.8% of residents.
Gordo defended his attendance at a press conference the previous week with County Supervisors Solis and Mitchell where he publicly backed the measure. He said he had committed at the time to bringing the matter before the full council. Madison noted the press conference occurred just 12 hours after the council had adopted its state and federal legislative platform — without discussing this County measure — and said he would have “handled it a different way.”
City Manager Miguel Márquez cautioned that the underlying federal cuts are complex, stemming from what he described as roughly a trillion dollars removed from federal healthcare support between 2025 and 2034 under the so-called “one big beautiful bill.” He said reversing those cuts would require new congressional action, as they are now “baked in” for a decade.
Márquez added that staff would do their “level best” to compile the requested analysis by April 13, though gathering the necessary data from the County and state would be challenging.
A staff report from Director of Finance Karin Schnaider presented at the meeting showed Pasadena’s current 10.5% sales tax rate is in line with most neighboring cities, including Arcadia, Burbank, Glendale, Long Beach and South Pasadena. A quarter-cent local sales tax increment — the amount of room Pasadena still has under existing caps — would generate an estimated $11 million annually for the city.
Madison noted the council had discussed at a retreat last fall the possibility of pursuing that remaining quarter-cent for the city’s own needs before the County claimed the capacity. Whether AB 1768 would preserve that option for cities remains unclear, staff said.
The council’s motion to defer and direct staff to return with a comprehensive analysis on April 13 passed without objection. Councilmember Rick Cole seconded Madison’s motion.
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