Los Angeles County has entered into a stipulated settlement with the state’s Fair Political Practices Commission (“FPPC”) for using taxpayer dollars to support a ballot measure and failing to report the expenditures.

In 2017, the County’s Board of Supervisors voted to put Measure H on the County’s March 2017 Special Election ballot. Measure H increased the County’s sales tax by a quarter-cent to fund homeless services.

The County authorized a $1 million budget in support of Measure H. The expenditures included paid media advertisements and a contract with a private consultant to promote the measure. The advertisements ran on television and radio and were far from impartial, always including the slogan: “Measure H, Real Help, Lasting Change, Vote March 7.”

The Howard Jarvis Taxpayers Association (“HJTA”) filed a lawsuit against the County for “gross misconduct,” alleging that the County “illegally spent” close to $1 million in taxpayer funds on political advertising and failed to report the expenditures. The civil action prompted the FPPC to pursue an enforcement action against the County.

According to the FPPC, the County’s expenditures were a violation of the law regarding campaign-related communications at public expense. Government Code Section 54964 prohibits any “officer, employee, or consultant of a local agency” from spending “any of the funds of the local agency to support or oppose the approval or rejection of a ballot measure.” While California law allows public funds to be spent providing voters impartial information regarding a proposed ballot measure, it does not allow agencies to take sides in election contests. Any payment of local agency funds that is used for communications that expressly advocate the approval or rejection of a ballot measure is prohibited under the law.

The penalty for the County’s violation could have exceeded $2.4 million. Under the terms of the settlement, the County will pay a $600,000 penalty to the state and $600,000 to HJTA. The settlement also includes a dismissal of the civil suit filed by HJTA and $150,000 in attorneys’ fees.

The FPPC has indicated that it is increasing its enforcement focus on public agency spending in connection with political campaigns and ballot measures. In an August 20, 2020 press release, FPPC Chair Richard C. Miadich called the County’s expenditure a “clear violation of the public trust” and warned that the FPPC “will not sit idly by when public officials illegally use taxpayer money for political purposes,” and that “officials will continue to be a focus and priority for the FPPC.”

Local agencies routinely place measures on their local ballots. Local officials must take caution not to spend taxpayer dollars on communications and campaigns that support or oppose those measures.

For further information about public agency funding of political activities, you are welcome to contact the offices of Churchwell White at (916) 468-0950 or email Steve Churchwell at Steve@whitebrennerllp.com, Doug White at Doug@whitebrennerllp.com, and Nubia Goldstein at Nubia@Churchwellwhite.com.