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10A Page 4 AS 1254 from page 1 .. .. e '" .. '" '" .. . .. .. co .. .. .. .. .. .. .. .. .. <I; .. .. .. .. .. .. "' !If .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. '" .. A common complaint among local offlciafs is that the revenue derived from housing often fails to match local service costs. One area where this situation is particularly acute is when local governments approve affordable units operated by nonprofifs. These units typically pay no property taxes, because the state grants a "welfare exemption" for these units pursuant to subdivision (t) or (g) of Section 214 Revenue and Taxation Code. Sponsored by the League of California Cities, AB 1254 provides a solution. The bill would reward "good actor" communities by offsetting what they lose on property tax on any new affordable units approved after January 1, 2008. VVhile the property tax exemption provided to nonprofit operators of affordable housing develop- ments promotes affordable housing policy byassist- ing in maintaining units at affordable rents, local governments are left with no property tax revenue to provide police, fire, park, recreation, library and other services to residents of these units. For local governments, this loss of revenue can operate as a disincentive to approve affordable units. But even when these units are approved, it can produce undesirable effects: agencies are faced with reducing community services, transferring revenues from other public priorities, or chasing retail tax dollars. AS 1254 reduces the required local transfers of property tax for (ERAF) education purposes by an identical amount. This would allow these corrmunj.. ties to retain more property tax at the local level to provide services to the residents of affordable housing. This measure is patterned after SB 1509 (Dunn) of 2001 , which received significant bipartisan sup- port, but was vetoed by Gov. Gray Davis. A sunset date is also included in AB 1254 so that the State Legislature may property evaluate the effectiveness of this law in rewarding communities approving affordable units. VYhile AS 1254 has taken one step forward by passing through the Assembly Local Government Committee, the real work to have it appear on Gov. Schwarzenegger's desk is just beginning. Cities are encouraged to send letters supporting this bill. To look up more infonnation on the measure and access a sample letter, visit www.cacities.orgl billsearch. . . e # . . 0 . . . . . 0 . . . 0 . . . . . . . AB 1654 from page 1 Voting by mail has increased steadily in Califor- nia for more than 40 years. Providing a proper addition to the institutionalized "Ballot Casting at the Polls. for general law cities is a way to increase voter turnout and to cut costs of elections for cities and counties. This is one of the major reasons that local government entities such as the League, the California state Association of Counties (CSAC), the California Association of County Election Officers (CACEO) and the City Clerks Association of California (CCAC) all support AS 1654. The league has met with labor, community based organizations, civil rights groups and mem- bers on both sides of the aisle to gather input and continue to educate on how cities are losing money on the current ballot system. The larger the voting pool, the more diverse the opinion. Does it really matter if a vote comes from the voting booth or via mail? States such as Oregon have benefited from all- mail ballots. Oregon's voter turnout in 2002 was the fifth-highest in the nation and by 2004 they were the fourth-highest - a savings of 30 percent in election related costs. AS 1654 is good public policy that is in need of local government support. Letters of support for AS 1654 can be sent to Assemblyman Huffman at: The Honorable Jared Huffman State Capitol Building, Room 4139 Sacramento, CA 95814 RE: Support AS 1654 (Huffman) Please remember to copy League Legislative Representative P. Anthony Thomas and your Iocaf assembly member on the letter. Thomas can be reached at athomas@cacities.org. PAGE 4 . PRIORITY FOCUS April 13, 2007 . Issue #14 Visit the League's OffIdal Webslte-www.cacitles.org