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HomeMy WebLinkAboutMINUTES - 11041986 - 2.2 ,TO. BOARD OF SUPERVISORS a � FROM: Phil Batchelor, Cwtra County Administrator Costa DATE: October 29, 1986 CO �� SUBJECT: `�� �`7 CSAC FISCAL RELIEF STRATEGY FOR 1987 SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. Endorse, conceptually, CSAC' s recommended Fiscal Relief Strategy for 1987 . 2. Direct staff to continue to monitor this item and suggest improvements to various items as the details of proposals become known. FISCAL IMPACT If implemented, the strategy could have significant positive financial impact on the County. 'BACKGROUND: CSAC has asked that each Board of Supervisors take a position before the annual conference on their proposed fiscal relief strategy.. The strategy has four major components. The features of each are discussed below. 1. Funding the Courts AB 19, passed in 1984, calls for major assistance in financing superior, municipal and justice courts. The proposal calls for block grants to counties, as well as certain streamlining and cost cutting measures in the courts. At the time the bill was passed, no funding was included. CSAC is recommending that obtaining funding become a major emphasis for the 1987 session. The concept of the State assuming funding for the courts is a good one. Care should be taken, however, to ensure that the counties end up with a net gain in unrestricted funding in exchange for the streamlining and cost cutting measures which have been proposed. Absent the net financial gain, the bill could end up as a requirement to implement changes in the courts which make it more difficult to operate, without offsetting benefits. CONTINUED ON ATTACHNENT7 YES SIGNATURE: ///JI^ � bi\�l�yr'v✓ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION140F BOARD COMMITTEE APPROVE OTHER S I GNATURE(S 1: ACTION .OF BOARD ON November 4, 1986 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: - ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382/7-83 BY DEPUTY y C 2. Revenue Shift Implementation of this component would result in a shift of one-half cent of the existing sales tax to counties. This appears to have great potential as a revenue source with unrestricted uses. Apparently, this option is being pursued because the State is close to exceeding its Gann Limit. Transfer of unrestricted revenues to another level of government is one possible solution to this problem. Another option is a refund of money to taxpayers. The Governor is known to have been giving serious consideration to this alternative. CSAC' s efforts should concentrate on moving the Governor' s Office to a different viewpoint about the appropriate way to address the State' s Gann Limit. An alternative worth considering would be a campaign to transfer current local government services (and associated Gann Limits) to the State, thereby increasing the State' s limit. This option seems to be much less likely to be acceptable to the State and also raises issues of local control. In light of the problems with this approach, the one recommended by CSAC appears preferable. 3 . Distressed Counties This feature of the Fiscal Relief Strategy calls for a permanent allocation of between $32 and $50 million to counties which are experiencing the most severe financial problems, as defined. A subcommittee is currently working on the criteria to define "distressed" . In concept, the idea of a permanent "safety net" for counties with the worst financial problems is worth supporting. However, certain problems could arise if a greater number of counties qualify for funds than are currently envisioned, and the cap remains firm. Conceivably, larger counties could "eat up" a majority of funds available, especially if apportioned on a prorated basis. Additionally, the criteria used to establish eligibility might not "fit" all counties in terms of truly defining whether or not they are distressed. These potential problem areas should be considered in developing specific language. 4. Potential County Fiscal Initiative The final feature of the Fiscal Relief Strategy calls for the development of a potential county fiscal initiative if the counties' fiscal plight is not lessened during the year and if the Legislature and Administration do not address the continuing financial problems of counties. The word potential was emphasized in the CSAC material. The strategy here appears to be that the counties cannot afford to wait until after another legislative session to decide upon and put the mechanism in place to independently resolve county problems. If significant improvements aren' t made in the next six to twelve months, the counties should be ready to immediately pursue our last alternative - that of going directly to the voter for relief. This approach is desirable for several reasons. First, it puts the State on notice before they are asked to act, that there are possible repercussions of not acting. Unfortunately, this could also be perceived as a threat, which may have negative impacts if not presented appropriately. Second, it makes use of the next session' s "waiting time" and avoids further delay in implementing efforts to resolve counties' financial problems. Summary For the reasons discussed above, it is appropriate to conceptually endorse the proposals developed by CSAC. Staff should, carefully monitor the specifics as they are developed, to ensure that they achieve the intended objectives and that county needs are truly addressed.