According to a recent article, the City of Long Beach is facing dire financial consequences as Senate Bill 1137 (SB 1137) takes effect, signaling an end to local oil production. An audit reveals that the city stands to lose between $278 million to $301 million annually, revenue crucial for funding essential public services including police, fire departments, libraries, and parks.
Plans to put the referendum on SB 1137 on the ballot have been thwarted by a recent legislative decision, leaving Long Beach with the task of finding alternative revenue sources. Mayor Rex Richardson has acknowledged the urgency of addressing these fiscal challenges, proposing new revenue measures to fill the impending budget gap.
One proposed solution includes taxing individuals outside Long Beach, such as customers of Los Angeles DWP and SCE. This suggestion has sparked controversy, with concerns raised about fairness and the principle of "Taxation Without Representation." David Link, a resident of Long Beach, articulated these concerns in a recent letter questioning the imposition of taxes on non-residents for the city's financial needs.
Link also criticized the potential proliferation of new taxes, suggesting they may only serve to exacerbate deficits at the state and local levels. He highlighted the uncertainty surrounding whether these measures would truly benefit Long Beach residents or merely contribute to larger economic challenges.
As the city navigates these complex fiscal realities, discussions continue on how best to mitigate the loss of oil revenue and sustain critical services without unduly burdening taxpayers. The outcome remains uncertain, with stakeholders debating the long-term implications of legislative decisions on both local budgets and broader economic stability.
As CIPA continues to fight for the rights of California’s independent oil and gas producers, it would do cities well to pay close attention to whether the state’s “shut down” agenda is going to impact their fiscal stability. Shutting down California’s oil industry will have fiscal impacts on jurisdictions beyond Long Beach.
For more information, contact Sean Wallentine.