L.A. Councilmember Tim McOsker Launches Nonprofit Amid Ethics Concerns

Los Angeles City Councilmember Tim McOsker is launching a nonprofit association, the One Five Fund, to bolster basic services within his Harbor-area district. This initiative, aimed at funding street lighting and park improvements, has sparked debate and raised ethical questions among experts. McOsker announced the fundS impending launch at a Los Angeles Current affairs forum luncheon last month, stating that the One Five Fund “will make requests of folks throughout the city for money.” The move comes as the city grapples with ongoing budget constraints, prompting McOsker to seek alternative funding sources for essential community services.

Addressing Budget Shortfalls Through Private Funding

Council District 15, represented by Tim McOsker, is set to benefit from the One Five Fund, a newly established nonprofit designed to supplement city-provided services. McOsker explained that the fund will address service gaps caused by the city’s persistent budget challenges. According to McOsker, donations to the One Five Fund will be channeled to other nonprofits, wich will than execute the necessary work. He emphasized the importance of supporting these organizations, particularly in light of potential reductions in federal grants.

McOsker’s office clarified that while he will actively fundraise for the One Five fund, he will not be involved in the allocation of funds. “What I want this to be is something that outlives me,” McOsker stated, drawing on his prior experience at a nonprofit connected to the L.A. Port before his election to the council in 2022.

Precedents and Parallels: Other City-Linked Nonprofits

The concept of nonprofits supporting city agencies is not entirely new in Los Angeles. Organizations linked to the fire, police, and parks departments already exist to raise private donations. Moreover, Mayor Karen Bass serves as an advisor to and fundraiser for the Mayor’s Fund, an initiative started under former Mayor Eric Garcetti. The Mayor’s Fund, however, has shifted its focus under the Bass administration to address homelessness.

While nonprofits supporting specific city departments are relatively common,a nonprofit dedicated to bolstering services within a single city council district is less so.The CD 11 Foundation,associated with supporters of City Council member Traci Park,funds infrastructure and public safety projects in Park’s Westside district. Pete Brown,Park’s spokesperson,noted that while the foundation’s website features photos of Park,she is not involved in its fundraising or operational activities.

Ethical Considerations and Concerns

Doug White, a philanthropic advisor and author on nonprofit organizations, acknowledged the possibly worthy objective of the One Five Fund. however, he raised critical questions about the city’s capacity to provide these services independently. “the question I have is, why doesn’t the city do these things itself?” White asked.

White also expressed concern regarding the absence of public input on how the funds raised by McOsker will be allocated. He pointed out that the nonprofit, rather than taxpayers or the council member, will ultimately determine spending priorities. This raises questions about accountability and responsiveness to community needs.

The fundraising activities of McOsker also present potential conflicts of interest. As a fundraiser for the One five Fund, McOsker could solicit donations from lobbyists and bidders for city contracts. While city ethics rules prohibit such sources from contributing to political campaigns or a politician’s officeholder account, no such restrictions apply to donations to nonprofits. Furthermore,while campaign donations are capped at $1,000 per election,there are no limits on donations to nonprofits.

McOsker is required to report donations of $5,000 or more that he obtains for the One Five Fund as “behested payments,” ensuring a degree of openness.

Transparency and Potential for undue influence

Sean McMorris, an expert in ethics and transparency for the watchdog group California Common Cause, expressed concerns about the potential for “pay to play” scenarios arising from the One Five Fund. He stated that “even if the end result is a benefit to the constituents,” the fund creates the appearance of impropriety.

“It’s outside of the bounds of campaign finance law, and the public is just left to hope and pray that the money going in and out of this nonprofit is not creating any undue influence with this particular politician.”

Sean McMorris, California Common Cause

McMorris argued that if Los Angeles faces a budget shortfall, politicians should prioritize departments or consider raising taxes rather than relying on private donors.

Sophie Gilchrist,McOsker’s spokesperson,reiterated that the council member will not be involved in allocating the nonprofit’s funds. She also stated that a board of advisors will develop guiding principles for the fund. “They will engage with the community to determine funding priorities and will make allocation decisions,” Gilchrist said. “The council member will ensure full transparency by reporting all contributions as behested payments for the public to review.”

City Controller Kenneth Mejia’s analysis indicates that each of the 15 council districts has discretionary funds from various sources, but the amount varies by district.

Gilchrist added that “now is the right time for a fund like this to connect the philanthropic world directly with community organizations,” given the expected tightening of the city budget.

Initial Funding and Concerns Over Oil Industry Influence

The One Five Fund has already received a significant donation of $750,000 from Marathon Petroleum Corporation in January, according to a behested filing made by McOsker with the City Ethics department. Marathon Petroleum operates the largest refinery on the West Coast, located in mcosker’s district and nearby Carson.

This payment represents the final installment of funds owed to the city through a 2017 agreement. Tesoro Corporation,later acquired by Marathon,agreed to pay $9 million to fund community benefits in District 15 in exchange for the city not pursuing litigation related to the merger of its Wilmington and Carson refineries.

In December, the City Council approved the transfer of $750,000 to the One Five Fund through the California Community Foundation, stipulating that a Tesoro employee join the fund’s advisory board.

Alicia Rivera, an organizer with Communities for a Safer Habitat, expressed concerns about the presence of an oil employee on the advisory board. She argued that oil companies have a history of funding community services in the Harbor area as a means of mitigating criticism regarding the health effects of refineries on residents.

Marathon Petroleum did not respond to a request for comment on Rivera’s statement.

gilchrist, McOsker’s spokesperson, emphasized that the money is owed to the community through an agreement predating McOsker’s tenure.”By putting it into the One Five Fund, and adding a multi-member advisory group, the fund structure is designed to dilute the influence of any one donor, including this one,” she said.

Conclusion: A Balancing Act between Community Needs and Ethical Considerations

Councilmember Tim McOsker’s initiative to establish the One Five Fund reflects a proactive approach to addressing budget shortfalls and enhancing services in his district. Though,the fund’s reliance on private donations raises legitimate ethical concerns regarding transparency,potential conflicts of interest,and the influence of donors on community priorities. As the One Five Fund moves forward, careful attention to ethical guidelines, community engagement, and transparent allocation of resources will be crucial to ensuring its success and maintaining public trust.

LA Councilmember’s Nonprofit: navigating Ethics in Public Service Funding

Is it ethical for a city councilmember to establish and fundraise for a nonprofit supporting their district, blurring the lines between public service and private donations?

Interviewer: Dr. Anya Sharma, a leading expert in public governance and ethics, welcome. Your expertise on the intersection of government, philanthropy, and ethical conduct is invaluable.Councilmember Tim McOsker’s recent establishment of the One Five Fund has ignited a heated debate. Can you shed light on the ethical

LA Councilmember’s nonprofit: Navigating the Murky Waters of Public-Private funding

Is it ethical for a politician to personally solicit private funds for a nonprofit ostensibly benefiting their constituents? The line blurs between public service and private interest, and the implications are far-reaching.

Interviewer: Senior Editor, world-today-news.com

Expert: Dr. Anya Sharma, Leading Expert in Public Governance and Ethics

The Ethics of the One Five Fund: A Deep Dive

Interviewer: Dr. Sharma, Councilmember McOsker’s One Five Fund, designed to address budget shortfalls in his district, has sparked significant ethical concerns. What are the core issues at play here?

Dr. sharma: The core issue revolves around the potential for conflicts of interest and the blurring of lines between public and private funding in local governance. While the goal—improving vital services like street lighting and park maintenance—might be laudable, the method of achieving it raises significant ethical questions. The primary concern is the potential for “pay-to-play” scenarios, where donations might influence political decisions or create an expectation of favoritism. This is particularly relevant since there are no restrictions on donation amounts to nonprofits, unlike campaign finance laws. This lack of transparency casts a shadow over the integrity of public service.

Interviewer: You mentioned “pay-to-play.” Can you elaborate on how that dynamic might manifest with the One Five Fund?

Dr. Sharma: Imagine a scenario where a company seeking a city contract donates a substantial sum to the One Five Fund.Even if the councilmember insists on no involvement in fund allocation,the perception—and perhaps the reality—is that such a donation could influence future decisions,however subtly. This perception erodes public trust and undermines the fairness of the contracting process.The lack of transparent oversight and public input into the allocation of donations further exacerbates this risk. This is a classic example of how private funding, while seemingly altruistic, can create a breeding ground for unethical practices in local government.

Transparency and Accountability: The Missing Pieces

Interviewer: What mechanisms could enhance transparency and accountability in situations like this?

Dr. Sharma: Strengthening transparency is paramount. This involves implementing stricter reporting requirements, perhaps even real-time reporting of donations and their subsequent allocation. Independent oversight boards with strong community representation are also crucial.These boards should be tasked with deciding where funds are used, ensuring that the spending aligns with the needs of all residents, not just those who are politically connected. robust public consultations and forums are essential to engage the community in the decision-making process related to the fund’s activities. This approach fosters a better understanding of how this type of private funding affects the community. More importantly, it fosters accountability.

Best Practices: Lessons Learned & Future Recommendations

Interviewer: What best practices could other municipalities adopt to prevent similar ethical dilemmas from arising?

Dr. Sharma: several key steps can help. First, municipalities should explore alternative funding mechanisms that don’t rely so heavily on private donors. This includes advocating for adequate public funding, exploring creative revenue generation, and implementing responsible budget allocation strategies. Second, if private funding is sought, strict ethical guidelines and extensive transparency measures must be in place.All donations should be publicly disclosed; third-party oversight should be mandated, and independent auditing should be routine.prioritizing public engagement and ensuring community input in the decision-making related to both budgeting and private fund allocation is essential.This is key for strengthening the ethical governance of city funds.

The Role of Public Engagement & Community Input

Interviewer: How crucial is public input in ensuring ethical conduct regarding such funds?

Dr. Sharma: Public input is absolutely vital.It’s not simply about transparency but also about accountability and legitimacy. Public forums, online engagement platforms, and community surveys can inform decision-making and enhance the fund’s effectiveness. When citizens feel involved and heard, the risk of unethical behavior decreases, and the overall integrity of the initiative improves. when public trust erodes, the impact extends beyond a single instance; it damages faith in the entire governance process and reduces citizen engagement.

Conclusion: Striking a Balance

Interviewer: Dr. Sharma, thank you for providing such insightful perspectives on this complex issue. What are your final thoughts on navigating the ethical considerations surrounding public-private partnerships in local government?

Dr. Sharma: To successfully navigate the ethical minefield of public-private partnerships for local government requires a commitment to transparent processes, strong accountability mechanisms, and actively engaging the community. By prioritizing these elements, cities can leverage the benefits of private funding while minimizing the risks of conflicts of interest and undue influence. Remember, the ultimate goal is to serve the public good, requiring processes that are not only effective but perceived as fair and impartial.

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