AgdaPkt 2002-03-11 - Laserfiche WebLink

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i.2, SENATE HEARINGS from page I · · ·.. · · · · · · · · · · · · · · · · · · · · · · · · ·. · · · · · · · McKenzie's testimony briefly summarized the service demands new residents generate); accused of factors that led the League to propose an initiative chasing 'Big Box' retailers (even though per capita to prevent further erosion of local revenues, Pre- sales tax revenues actually have declined); and senting a chart as illustration (see inset), McKenzie forced to raise local taxes and fees with the atten- sited the increasing uncertainty for local government dant political consequences as the state's revenues revenues as a are growing." result of a series California State and City Revenues of state actions, ""~ While ex- including the pressing appre- shift of local ciation for property taxes commitments to meet state from state government leaders to shield needs (e.g. the local govern- Education ments from Revenue Aug- further budget mentation Fund cuts, McKenzie - ERAF); a said that local gradual reduc- government had tion in the "'"'"' ~""'-" "-=~' ~-~, come to "an amount of state inescapable revenues shared with local government; and the conclusion: Until the foundation of existing funding. elimination of a major source of local revenue (the of cities is constitutionally protected, it will be Vehicle License Fees - VLF), with a promise of a difficult for cities to see efforts by the legislature to "backfill" to make local governments whole that redistribute local taxes as anything more than part could be changed with individual budget decisions, of a continued pattern of erosion of local funding and reduction of local services. Since public safety "The result of the instability and erosion of local services amount for the vast majority of city bud- revenues has been a decline in city services and the gets, the importance of this funding is inescap- quality of life in the cities of California, said able--especially in today's environment." McKenzie. "Today cities are unfairly charged with being roadblocks to affordable housing (when even (Note: This chart is also available on the League's Web site market rate housing does not pay for the public under Priority Issues/State Budget Alert.) COMMUNITY PUBLIC HEALTH AND SAFETY PROTECTION ACT A Summary of the Ballot Measure fi/ed by the League, CSAC and CSDA with the Attorney General on 1/15/02 Revenue Protection. Prohibits the state from taking Suspension Provisions. Allows the legislature by a 2/ any action that reduces any local financial resource avail- 3 vote separate from the budget vote to suspend the able for appropriation by a local government for public prohibition in any two fiscal years in a 10-year period safety, public health, or for other local government services. Protects existing local taxes (e.g., sales, property, etc.) plus Accountability. Requires local governments to adopt growth according to the Gann factor, fines and forfeitures, minimum procedures and policies for the development and and amounts received from state subventions in existence adoption of goals and outcomes for the budget year, with on 1/1/02, including the VLF, COPS, booking fees, Prop. public participation. Also requires an annual report on 172 and other subventions received by local governments, accomplishment of such goals and an annual financial audit. Exempts charter cities and counties. New Revenue. None. Visit the League's Official Web Site--www. cacities.org PRIORITY FOCUS/PAGE 3