AgdaPkt 2004-08-23 - Laserfiche WebLink

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iA·q Q: Will this measure prevent state fiscal reform efforts? A: No. The first and most important step in reforming the troubled State-Local fiscal relationship is to protect local government funding from continual state raids. Prop 1 A would accomplish this important first step, while also leaving the door open for more comprehensive fiscal reform in the future. Specifically, Prop 1 A would retain authority for the Legislature to approve the exchange of local sales tax for an equal amount of property tax when requested by local agreements. Any type of voluntary revenue exchange agreement must be revenue-neutral for the impacted local governments. Q: Does this measure increase revenues to local governments? A: No. Prop 1A simply prevents the state Legislature from further reducing existing levels of local government revenues. Q: Why doesn't Prop 1A attempt to recollect lost ERAF property tax dollars? A: Prop 1 A was intentionally drafted to draw a line in the sand and prevent future state legislative raids of local government funding. While local governments and services are still deprived by the ongoing state raid of property taxes, given the state of California's fiscal health, we believe a more responsible approach at this time is to "stop the bleeding" at current levels. Q: What happened to Proposition 65, which is also on the November ballot and attempts to protect city, county and special district revenues from state raids? A: Our coalition placed Proposition 65 on the ballot earlier this year, prior to the historic, bipartisan July agreement that placed Prop 1A on the November ballot. After Prop 65 qualified for the ballot, Governor Schwarzenegger approached our coalition and asked that we work with him on an alternative local government protection measure. We agreed to provide the state with short-term contributions from local governments to help the state out of its immense budget problems, and the Governor agreed to work with the legislature to place Prop 1A on the ballot and to actively campaign for passage of Prop 1A this Fall. Proposition 65 will continue to be on the ballot, but all of the official sponsors of Prop 65 are now opposina 65 and supportinq ProP 1 A as a better, more flexible approach to protect funding for local governments and local services. Q: What happens if both Proposition 65 and Prop 1A pass? A: Proposition 1A was written so that if it gains more votes than Proposition 65, it supersedes Prop 65 in its entirety. Prop 1A contains language that specifically says that Prop 1A is a "comprehensive and competing alternative" to Prop 65, and that "it is the intent of the people that this measure supersedes in its entirety Prop 65", if Prop 1A gets more votes. ,.- ._, - -, ....,. _. ...-y-.'.......-----...