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HomeMy WebLinkAboutMINUTES - 02021993 - S.4 S . Lr TO:" BOARD OF SUPERVISORS tl J Contra FROM: . Surine ✓fright Ac.Peak Costa DATE: February 2, 1993 ouay SUBJECT: Partnership Tax Credit SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Endorse the concept of a Partnership Tax Credit as outlined in the attached paper and authorize the CAO to transmit our position to the Clinton Administration and its economic advisors and to Governor Wilson and appropriate state legislators for consideration at their Economic Summit., BACKGROUND: The attached concept paper for a Partnership Tax Credit was prepared for a White House Conference in 1987 and endorsed by the CSAC California Council on Partnerships (CCOP) . In 1991, the CCOP and CSAC budget task force reaffirmed their support of the Partnership Tax Credit concept. Most recently, it was identified at the January 16, 1993 , Fiscal Unity Summit as an action proposal that should be pursued. .Very simply, the idea of a Partnership Tax Credit is that all income taxpayers ( individual and corporate) would have the option of directing a portion of their income tax liability to local priority public-private partnerships selected by the Board of Supervisors through a public hearing process. This would reinvolve people directly in their own governance and mobilize resources in the communities where the problems exist. It is "reinventing government"--as people are so fond of saying in a most fundamental way. It is particularly timely for Contra Costa County to advocate this concept when (a) a new national administration is seeking innovation ,and considering tax increases; and (b) the State will be convening an economic summit looking for creative ways to address the State' s problems. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES) ACTION OF BOARD ON 777 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISO S ON THE DATE SHOWN. QQ CC: ATTESTED Phil Batchelor, Clerk of the Board of Contact: Karen Mitchoff Supmry wsWCounty Adminisft �II9A9Iti.09 BY v , DEPUTY PUBLIC-PRIVATE PARTNERSHIP TAX CREDIT PROPOSAL Sunne Wright McPeak - Presented to the White House Conference on Public-Private Partnerships Presidential Board of Advisors on Private Sector Initiatives November 13, 1987 The future demands a better way to govern ourselves. We need solutions to problems that are more effective and more efficient to remain competitive in a world economy. We must break through the historic way government operates and evolve innovations which capture the energy and creativity of our citizenry. Greater government effectiveness requires new approaches that encourage local problem solving, build community self-reliance, and foster individual responsibility. New relationships with the private sector--business, labor, non-profit community organizations, churches, civic groups, service clubs, and individual taxpayers-- are needed to bring about this fundamental change. Public-private partnerships are key to a "New Era of Governance. " Public-private partnerships can be simply defined as joint efforts between the public and private sectors to address shared problems for mutual benefit. Public-private partnerships recapture the fundamental principles of self-governance and harness the entrepreneurial spirit of the free enterprise system to advance the public good. The essence of public-private partnerships is a new alliance between the people and their representatives. The future of our nation also depends on fully tapping the creative resource of our citizenry. We must meet the challenge to provide equal opportunities for all persons to be productive, contributing individuals. only when we can ensure each child has the opportunity to reach his or her full potential will we have fulfilled the promise of America. This goal can only be achieved with the commitment" of both the public and private sectors working together. The state and federal governments can take steps to encourage public-private partnerships. First and foremost, public officials can provide leadership in advocating partnerships and convening the appropriate partners to jointly address issues. It is also possible for government to establish incentives and remove barriers to public-private partnerships through new policies and laws. A tax credit program for participation in public-private partnerships would foster greater involvement in this approach to problem solving and governance. The following is an outline of the components of a public-private partnership tax credit program. 1. The State of California and/or the federal government should enact a tax credit program for taxpayers who participate in officially designated and eligible public-private partnerships. 2. Local county Boards of Supervisors would be responsible for designating eligible public-private partnerships annually. The designation by the Board of- Supervisors should be based upon an adopted set of criteria and a prescribed public hearing process. Each county should be allowed to designate up to a specified number; i.e. , three to five, of eligible public-private partnerships annually in specific subject areas. Keeping the number low will encourage and require community focus on priorities and consensus on partnerships. Initially, tax credits should be allowed for particular, broad priority categories such as (a) education, (b) children and family services, (c) senior citizen services, and (d) alcohol * and drug abuse prevention. These categories of concerns relate to responsibilities mandated to counties and areas of need for communities to become self-sufficient. Further, experience has shown that public-private partnerships in these areas produce significant results. 3 . Taxpayers who contribute up to a specified amount; i.e. , $100 , annually to one or more of the designated public-private partnerships would be eligible for a tax credit in a like amount on their personal income taxes. If both the state and federal government enact public-private tax credit programs, then coordination between the two laws would be essential to avoid conflicts or duplications. 4 . Public-private partnerships would be deemed eligible for the tax credit program only if they fall within specific categories and meet a set of essential criteria including, but not necessarily limited to: the partnership has joint public and private governance and decision making; there is a well-defined partnership work plan and partnership agreement that delineates the roles, responsibilities, and contributed resources of each partner; - there is joint public and private funding for the partnership; - there is evidence of broad public support with an emphasis on volunteer involvement; -2- - the partnership accomplishes a task that either (a) would otherwise become the sole responsibility of the public sector or (b) significantly augments a responsibility that is largely a public obligation. 5. The tax credit program should be enacted for a three-to-five year period of time with a sunset provision. It should be reviewed and evaluated for its effectiveness to determine the extent of new public-private collaboration resulting from the tax credit program. The advantages of a public-private partnership tax credit program are: • It encourages private individual taxpayers to become directly involved in addressing problems in their own community which are also priorities of the public sector. • It results in more efficient application of dollars to public problems that would otherwise be collected as taxes by government to address the same concerns. • It fosters greater citizen involvement in governance. A tax credit program can be most viable when there is either (a) a budget surplus but with many remaining public needs (as in the State of California) or when (b) new taxes are being considered (as with the federal government) . In either case, a tax credit option gives the taxpayer more discretion over how his or her resources are used. ---------------------------- * Another item (e) should be added today to focus on community economic development and to reflect your priorities. Of course, it is conceivable that several more broad areas could also be included, but it is important to focus the partnerships in broad areas of national priorities at the beginning of such a program. -3-