Slim majority supports L.A. sales tax increase

A Los Angeles sales tax hike being promoted as vital to preserving public safety and helping end years of budget deficits is drawing support from a narrow majority of likely voters, according to a new USC Price/L.A. Times poll.

Fifty-three percent of surveyed voters said they definitely or probably would vote for Proposition A, which is on Tuesday's ballot and would raise $200 million a year by boosting the city's sales tax rate by half a cent to 9.5%, one of the highest in the state.

About 41% of respondents said they expected to vote against the measure, while 6% were undecided. The results offer hope to Mayor Antonio Villaraigosa and other backers of Proposition A, which needs 50% plus one of the vote to pass.

GRAPHIC: Contributions to Yes on Prop. A

Because of the poll's 4.4-percentage-point margin of error, support could dip below 50% and passage can't be taken for granted, said Dan Schnur, director of the Jesse M. Unruh Institute of Politics at USC. "On one hand, [Proposition A] enjoys a fairly sizable lead in the polls," he said. "On the other hand, margins this close to 50% should always be cause for concern for an initiative's proponents."

The bipartisan USC Sol Price School of Public Policy/L.A. Times Los Angeles City Primary Poll canvassed 500 likely voters between Feb. 24 and 27. The poll was conducted jointly by the Benenson Strategy Group, a Democratic firm, and M4 Strategies, a Republican company.

Backers of Proposition A — using contributions from labor unions, billboard companies and real estate interests needing City Hall approvals — have been airing TV ads featuring images of accident victims being rushed to hospitals and a grim-faced Police Chief Charlie Beck warning that "public safety is now in danger."

Beck also has been warning at news conferences and in interviews that the Los Angeles Police Department will lose 500 officers if voters reject the tax increase.

Opponents, who lack the money to mount an advertising campaign, say voters are being asked to pay for bad City Hall spending decisions, including a deal that gives civilian city employees a 25% pay hike over seven years.

Some warn that city leaders will only give away the added sales tax collections by pursuing a proposed phase-out of the business receipts tax. The top five candidates for mayor have come out against Proposition A, and the poll results suggest that was politically wise. Close to half of respondents said they would be less likely to vote for a mayoral candidate who supports the sales tax increase.

The poll indicates that the Proposition A language that city officials put on voters' ballots could end up pushing it to victory, said Chris St. Hilaire, chief executive of M4 Strategies, which helped conduct the poll.

The ballot title calls it the "neighborhood public safety and vital city services funding and accountability measure" and says it would help maintain 911 emergency and other services.

Retired nurse Annette Koppel, 80, voted by mail for the sales tax increase, but only reluctantly. Although she is living on a fixed income, Koppel — a victim of a carjacking in the late 1980s — said she worries about a decrease in the number of police, firefighters and paramedics.

"Without them, what are we going to do?" she asked.

Some, including a former top budget advisor to Villaraigosa who is now running for City Council, have questioned whether the budget crisis is as severe as city officials say.

James Cotton, 84, of Winnetka told The Times that he voted against the sales tax increase even though his daughter is an employee in the Fire Department. Cotton said lawmakers should look for other ways of balancing the budget and making better choices about how to spend taxpayer funds.

"I'm of the opinion that a lot of the money could be better spent," said Cotton, adding that the measure would hurt businesses and residents on fixed incomes.

The push for a sales tax increase is being led by City Council President Herb Wesson, who has helped raise more than $1.2 million for the pro-Proposition A campaign. More than one out of every four dollars has come from labor unions, most of them representing city employees. Service Employees International Union, which represents civilian city employees, has given $100,000. Its members at City Hall received a 3.75% pay increase last summer and are in line for another 1.75% raise in July and a 5.5% pay hike on Jan. 1, 2014.

As of Friday afternoon, real estate interests and billboard companies had provided one-third of the money collected in support of Proposition A, according to Ethics Commission records. Several donors are waiting for the City Council to approve their projects or have already received permission to use tax revenue to finance their projects.

The single biggest donor has been NFL stadium developer Anschutz Entertainment Group, which has received a series of lucrative deals with City Hall over the last decade. The company was given the right to keep up to $270 million in tax revenue generated by its hotels at the LA Live entertainment complex over 25 years.

AEG is also seeking to run the city's Convention Center.

The company, its top executive and its lawyers have given a combined $126,000 to get the measure passed, according to campaign reports.

david.zahniser@latimes.com

kate.linthicum@latimes.com

Times researcher Maloy Moore contributed to this report.

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Evernote Hack Exposes User Data, Forces Extensive Password Resets

Evernote joins Twitter, Apple, and Facebook on the list of tech companies hacked in recent weeks.

Evernote “has discovered and blocked suspicious activity on the Evernote network that appears to have been a coordinated attempt to access secure areas of the Evernote Service,” according to a statement posted on the company’s website earlier today. “As a precaution to protect your data, we have decided to implement a password reset.”

About 50 million passwords have been changed following the breach.

The hackers accessed usernames, email addresses and encrypted passwords. The company is now requiring its users to update their passwords. To facilitate this, Evernote is releasing app updates.

The company claims they’ve found “no evidence” that user content was changed or lost nor that payment information was accessed.

Some users, however, said they had to resync their off-line content as a result of the hack in the Evernote forum.

In a statement sent to CNET, a company representative claims the company caught the hackers early and that they “believe this activity follows a similar pattern of the many high profile attacks on other Internet-based companies that have taken place over the last several weeks.”

The rep went on to say Evernote is “actively communicating to our users about this attack through our blog, direct e-mails, social media, and support.” The Evernote homepage implies email notifications have been sent to users. This author has not yet received one at time of publishing.

The company thinks “creating strong, new passwords will help ensure that user accounts remain secure.” But that’s questionable. Wired’s Mat Honan has suggested abandoning passwords altogether in favor of alternative methods for keeping data secure after he was hacked earlier this summer.

Reactions to the news have quickly spread through Twitter. One user noted, “I’ve had that disturbing feeling this was inevitable.” Patrick LaForge, an editor at the New York Times quipped, “The least the Evernote hackers could do is organize my folders of random clipping and wine label photos.”

This hack comes a day after Evernote made changes to its privacy policies, user guidelines and terms of service.

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In Filing, Casino Operator Admits Likely Violation of an Antibribery Law

 In its annual regulatory report published by the commission on Friday, the Sands reported that its audit committee and independent accountants had determined that “there were likely violations of the books and records and internal controls provisions” of the Foreign Corrupt Practices Act.

 The disclosure comes amid an investigation by the Securities and Exchange Commission as well as the Department of Justice and the Federal Bureau of Investigation into the company’s business activities in China.

 It is the company’s first public acknowledgment of possible wrongdoing. Ron Reese, a spokesman for the Sands, declined to comment further.

The company’s activities in mainland China, including an attempt to set up a trade center in Beijing and create a sponsored basketball team, as well as tens of millions of dollars in payments the Sands made through a Chinese intermediary, had become a focus of the federal investigation, according to reporting by The New York Times and The Wall Street Journal in August.

 In its filing, the Sands said that it did not believe the findings would have material impact on its financial statements, or that they warranted revisions in its past statements. The company said that it was too early to determine whether the investigation would result in any losses. “The company is cooperating with all investigations,” the statement said.

 The Sands’ activities in China came under the scrutiny of federal investigators after 2010, when Steven C. Jacobs, the former president of the company’s operations in Macau, filed a wrongful-termination lawsuit in which he charged that he had been pressured to exercise improper leverage against government officials. He also accused the company of turning a blind eye toward Chinese organized crime figures operating in its casinos.

 Mr. Adelson began his push into China over a decade ago, after the authorities began offering a limited number of gambling licenses in Macau, a semiautonomous archipelago in the Pearl River Delta that is the only place in the country where casino gambling is legal.

 But as with many lucrative business spheres in China, the gambling industry on Macau is laced with corruption. Companies must rely on the good will of Chinese officials to secure licenses and contracts. Officials control even the flow of visitors, many of whom come on government-run junkets from the mainland.

 As he maneuvered to enter Macau’s gambling market, Mr. Adelson, who is well known in the United States for his financial and political clout, became enmeshed in often intertwining political and business dealings. At one point he reportedly intervened on behalf of the Chinese government to help stall a House resolution condemning the country’s bid for the 2008 Summer Olympics on the basis of its human rights record.

 In 2004, he opened his first casino there, the Sands Macau, the enclave’s first foreign owned gambling establishment. This was followed by his $2.4 billion Venetian in 2007.

 Some Sands subsidiaries have also come under investigation by Chinese authorities for violations that included using money for business purposes not reported to the authorities, resulting in fines of over a million dollars.

 Success in Macau has made Mr. Adelson, 78, one of the richest people in the world. He and his wife, Miriam, own 53.2 percent of Las Vegas Sands, the world’s biggest casino company by market value. Last year, Forbes estimated his fortune at $24.9 billion.

 Mr. Adelson became the biggest single donor in political history during the 2012 presidential election, giving more than $60 million to eight Republican candidates, including Newt Gingrich and Mitt Romney, through “super PACs.” He presides over a global empire of casinos, hotels and convention centers.

Michael Luo and Thomas Gaffney contributed reporting.

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