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LP A -2 <br />If placed on the ballot and approved by the electorate, this measure will give the voters the <br />ultimate say on whether their local tax funds may be spent for State services. The measure will <br />require a simple majority voter approval of any proposed State law that reduces the sales, <br />property, or Vehicle License Fee (VLF) funds of cities, counties, or special districts. There is <br />reasonable flexibility built -in to the measure which would allow a reduction in the VLF so long as <br />it is replaced with substitute revenues, i.e., a "backfill." <br />This measure would also clarify the State's duty to reimburse local governments in a timely <br />manner for new mandated programs or mandated higher levels of service, thus protecting local <br />governments from hidden costs shifts. <br />This measure will not raise tax rates or fees; it will not repeal laws that the State has already <br />passed; it will not require the return of property taxes already taken by the State, nor will it affect <br />funding for education; and, it will not prevent structural reform of the fiscal system — in fact, it <br />simply requires that needed structural changes be planned collaboratively by State and local <br />leaders, and be approved by the voters. <br />The League is seeking active support for this measure from cities, counties, and special districts. <br />Our early support for placing this measure on the November 2, 2004 ballot will help lend <br />credibility and authority to the grassroots efforts being undertaken by the League and its partners <br />to secure sufficient signatures to qualify for the ballot. It is hoped that our City's support, along <br />with that of other local governments throughout California, will ultimately result in a successful <br />ballot measure and a strong level of protection of our local funds from further depletion by the <br />State. <br />Alternative <br />The Council could choose not to adopt this resolution and therefore not go on record in <br />support of providing California voters with a viable means of protecting local funds from <br />seizure by the State. <br />Fiscal Impact <br />There is no fiscal impact associated with the adoption of this resolution. <br />1 <br />Malcolm Smith Magd Gonzalez d Everett <br />Public Communications Assistant to the City Manager City Manager <br />Manager <br />Attachments <br />Draft Resolution <br />League of California Cities' questions and answers sheet about the proposed "Local <br />Taxpayers and Public Safety Protection Act" <br />Text of the proposed "Local Taxpayers and Public Safety Protection Act" <br />