AgdaPkt 2004-04-12 - Laserfiche WebLink

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1. 6-2 This measure has been filed with the State Attorney General's office, and now the League and its partners must gather sufficient signatures to place the measure on the November, 2004 ballot. If placed on the ballot and approved by the electorate, this measure will give the voters the ultimate say on whether their local tax funds may be spent for State services. The measure will require a simple majority voter approval of any proposed State law that reduces the sales, property, or Vehicle License Fee (VLF) funds of cities, counties, or special districts. There is reasonable flexibility built-in to the measure which would allow a reduction in the VLF so long as it is replaced with substitute revenues, Le., a "backfilL" This measure would also clarify the State's duty to reimburse local governments in a timely manner for new mandated programs or mandated higher levels of service, thus protecting local governments from hidden costs shifts. For Redwood City, this measure (if placed on the ballot and approved by the voters) will restrict the ability of the State to take our funding. For example: for more than a decade the State has continued to divert funds from Redwood City as part of the ERAF property tax shift, with an astonishing total of over $35 million to date; over just the last two fiscal years, the State has also taken our Redevelopment Agency funds totaling approximately $400,000. The loss of these funds has a significant impact on Redwood City's current budget deficit. Had there earlier been a preventative measure in place such as the one under consideration today, those State seizures of funds would have to have been authorized or rejected by the voters. For example, next year's projected deficit of approximately $7 million would likely be closer to $2.5 million, or less, if the public had said "no" to previous State actions to take local funds. This measure gives us the opportunity to prevent such State seizures in the future, by putting such decisions in the hands of the voters. This measure will not raise tax rates or fees; it will not repeal laws that the State has already passed; it will not require the return of property taxes already taken by the State, nor will it affect funding for education; and, it will not prevent structural reform of the fiscal system - in fact, it simply requires that needed structural changes be planned collaboratively by State and local leaders, and be approved by the voters. The League is seeking active support for this measure from cities, counties, and special districts. Redwood City's support for this measure will help lend credibility and authority to the grassroots efforts being undertaken by t he League a nd its partners to secure sufficient signatures to qualify for the ballot. It is hoped that our City's support, along with that of other local governments throughout California, will ultimately result in a successful ballot measure and a strong level of protection of our local funds from further depletion by the State. Alternative The Council could choose not to adopt this resolution and therefore not go on record in support of providing California voters with a viable means of protecting local funds from seizure by the State.