AgdaPkt 2004-04-26 - Laserfiche WebLink

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�1.�-in SENATE LOCAL GOVERNMENT COMMITTEE PASSES SB 1774 TO CONTINUE DISCUSSIONS- NEXT STOP SENATE APPROpRIATIONS COMMITTEE The Senate Local Government Committee provisions of SB 1774 for the Iegisiature during passed SB 17!4 on Wednesday of this week. the budget deliberations to con'inue to tinker This is a measu-e by Senator Ross Johnson with local government finance in order to help that would impler!ent a local government fi- the state out of its fiscal problems. This has nance reform measure. The bill wil! be heard been the problem in the past and would con- next in the Senate Appropriations Committee. tinue to be so under the current version of SB 1774. This is the first of at least two proposals to protect and reform local government finances. 2. Mandate Reform. The mandate reform The Senate Local Government Committee will section lacks some of the protections that we hear other measures at subsequent hearings. have found important to local government. it appears to allow the state to continue to shift The centerpiece of SB 1774 is a provision program responsibilities to local governments that swaps '/z cent of the Bradley-Burns sales without having to provide necessary reimburse- tax along with the non-realignment Vehicle ments. Once again, the reimbursement lan- License Fees going to local government for an guage in the League, CSAC and Speciai Dis- equal amount of property taxes. The swap would tricts proposed ballot measure is stronger from occur in a base year and the local government a local government perspective. could keep both the base and growth in the property tax base into perpetuity. 3. Redevelooment. Last, the measure does not protect redevelopment agencies from The measure is accompanied by a constitu- state raids. This is an essential tool for local tional amendment that would protect local government to both locate/direct economic government revenues from further raids on city, development activities in communities and to county and special district revenues. While provide the only real subsidy for local income many members of the commitiee did not sup- housing. To not protect redevelopment and its port all or part of the measure, they supported contributions would be detrimental to both local moving the bill along to keep discussions going governments and the state. on a possible reform measure that could be placed on the baliot at a future election. In addition to these overriding concerns, contains a number of inconsistencies and The League voiced several overriding con- drafting errors that will need to be corrected. cerns with the legislation. Primary among these The discussion being led by the Senate Local are the following: Government Committee is an important one and should be followed closely by city officiais. 1. Protection. While the constitutional It has the real potential to get caught up in the companion to SB 1774 provides greater protec- debate over the 2004-OS state budgets. We will tion for local government finances than is cur- keep you informed about future developments. rently afforded under existing law, it falls short of the protection needed to fully stabilize local government finance. In particular, the measure permits the legislature to change local govern- Fp� �e I�fOli�tiq7 p� thj5 � ment finance with a 2/3rds vote of both houses. In the ballot measure drafted and supported by �t� ��, �Sli the League, CSAC and Special Districts, local yyyyyy government finance can only be altered with a vote of the public. It would be too easy under the PAGE 2/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org