AgdaPkt 2004-07-12 - Laserfiche WebLink

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QA,4 SB 1212 fron1 f)8ge 1... ...... ....... ... ... ... ... .. . .. . .... ... . . . .. . . In its amended version the bill would retain the past several years, who argues that the key to govemor's proposal to swap VLF revenues for incentivizing local governments to approve more property tax on a dollar-for-dollar basis, but the housing is to ensure that they have more property growth on the new property tax revenues would be tax. distributed within each county as follows: . The county would receive a percentage of Eleventh-Hour Solutions Dangerous for local the growth on the property tax equal to the Governments county's percentage of the initial swap. It is clear from the argurnents put forward in . The remainder of the growth would be distributed to cities in the county on a per capita support of the S8 1212 amendments that while basis. legislators are concerned about how to create incentives to encourage local approval of more The Ducheny measure would also be contin- housing, there are serious differences of opinion gent upon the voters approving a constitutional about how best to do that. These differences amendment on the November 2004 ballot to highlight a core concern for local officials: state protect local government revenues, but there is no legislators are willing to consider a range of un- indication from the author if the Governor's pro- tested theoretical approaches that manipulate posed constitutional protection will suffice or if revenues needed to pay for local services, but these there is another proposal that is intended. approaches are not well understood - even by the people advocating for them. Further, legislators are Why Per Capita Distribution? willing to making sweeping changes in local financ- ing that could seriously impact communities' abilities to provide local services, but are not willing to put A fact sheet from the senator's office ex- state money on the table to achieve their goal of presses opposition to the VLF for property tax building more housing. swap in the govemor's proposal because the loss of VLF "actually reduces incentives local govern- All of the theories put forward thus far by differ- ments have to approve new housing develop- ent parties are interesting and worth consideration - menr. at a later time. All of the LOCAL-sponsoring asso- ciations have said that they are willing to engage in What would cities gain under the S8 1212 reform discussions - after constitutional protection approach, in which they would give up one per for current local revenues has been achieved. capita revenue source (current VLF) for what is essentially another per capita revenue source The opportunity legislators have today is to pass (property tax)? The answer from the author. the reform that local officials themselves have nothing, because 'he bill in essence preserves researched, discussed and carefully analyzed the status quo rather than exacerbates the among many stakeholders over weeks, months and fiscalization of land use.. This is a direct compari- even years. Eleventh-hour amendments of a son to the swap of VLF revenue for property tax sweeping nature run the serious risk of unintended contained in the Governor's package. consequences. SB 1212 Contradicts Other Legislative That's why we urge city officials to contact their Theories About Housing Incentives Assembly Members to reject last minute proposals. S8 1212 and other proposals that have surfaced The underlying assumption of S8 1212, during the tail end of budget deliberations represent the best example of why all city officials should therefore, is that what motivates local govern- redouble their efforts to support the governor's ments to build more housing is not the revenue proposal, creating the predictability and stability for source, but the way that revenue is allocated. local government finance that can provide the This approach conflicts with the theory put forward foundation for future reform discussions. by Assembly Member Darrell Steinberg for the PAGE 4/PRIORITY FOCUS Visit the League's Off"lCial Web Site--www.cacities.org .