AgdaPkt 2008-03-10 - Laserfiche WebLink

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8A Page 3 . Elimination of the Citizens Option for Public Safety (COPS) program ($119 million). . Elimination of Local Detention Facility Subventions ($35 million). Under current law, the deletion of this funding would result in the return of county booking fees charged to cities and others. However, the law limits those fees to 50 percent of actual administrative costs, including applicable overhead costs. . On the revenue side, the elimination of a number of sales tax exemptions would increase local Bradley Burns and local transactions and use tax collections by about $30 million and $20 million respectively. . In agreement with the administration. LAO proposes to delay state mandate reimbursement for another year such that actual reimbursements would be budgeted and paid two fiscal years following the incurred expenses. This would effectively be a one- time $75 million savings to the state. The impact to locals (including counties and schools) is some delay in reimbursement and therefore interest costs. . The LAO proposal includes no borrowing of property taxes or transportation sales taxes. League staff will continue to study this proposal and other developments. 'HUTA' Continued from Page 1... Cities should have their fiscal officer or finance director read the bill to get a complete understanding of the impacts the five month delay of HUTA payments may have on cities. The bill can be found on the California State Assembly Web site at www.assembIY.ca.qov.Click on Legislation on the left side and search for ABX 3 7. In brief. ABX3 7 does the following: . It retains the HUTA revenues in that fund for the months of April, May, June. July and August 2008 and repays them in full in September 2008. . During the five month HUTA delay period, ABX3 7 allows cities to meet their cash obligations with funds it has received from the Proposition 18 Local Street and Road Program for the same purposes the gas taxes are currently used for under Article XIX of the California Constitution. o It should be noted that the current language in A83X 7 specifies that the bond funds can be used for "local street and road maintenance," However, it is the intent of the Department of Finance that the funds can in fact be used for the broader purposes outlined in Article XIX. o If a city chooses to use Prop. 18 funds to supplement delayed gas tax payments, the use of those funds is not required to be reflected as bond fund expenditures, so long as the used bond funds are replaced upon repayment of the gas tax in September 2008, . Allows cities to accrue the gas tax revenues received in September 2008 as repayment of the suspensions for April, May and June 2008 back to FY 2007-08. The Leaaue encouraaes cites that have not vet applied for their share of the FY 2007-08 Prop.1B funds. should do so immediatelv. As noted above, these funds can be used as a temporary replacement of HUTA revenues. It is imperative that cities apply for their Prop. 18 funds for a number of reasons. . First, it is advantageous for cities to secure their funds in case they want to backfill the gap left from the HUTA delay. 3