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HomeMy WebLinkAboutMINUTES - 10181994 - FC.2 71) TO: BOARD OF SUPERVISORS SE,•` Contra FROM: ./ Finance Committee, Tom Torlakson Costa Z. :. ._:... z Gayle Bishop , ,�o� County DATE: Iq C'pi1 N'� October 11, 1994 SUBJECT: EFFORTS TO RESTORE PROPERTY TAX REVENUES TO CITIES AND COUNTIES SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. REQUEST that the Board of Supervisors urge the California Association of Counties to revive efforts place an initiative on the ballot to restore property tax revenues, lost by counties, to the allocations that existed in June, 1992. 2. REQUEST that the Board of Supervisors protest to the Governor, his veto of AB1826 which would have augmented the County Budget by $1.4 million for property tax collection activities. 3. REQUEST that the Board of Supervisors urge the State Constitutional Revision Commission to recommend the restoration of property tax revenues, lost by counties and cities, to the allocations that existed in June, 1992. BACKGROUND: When the Board of Supervisors approved the Proposed Budget in June, the Board referred to the Finance Committee the issue of examining the efforts by cities and counties.-to restore property tax revenues to their jurisdictions lost by state directed revenue shifts to schools. These local efforts have been focused in the California Association of Counties (CSAC) and the Association of Bay Area Governments (ABAG). CSAC actively considered a constitutional amendment and drafted a "Local Government Reform and Accountability Act". The Act would have returned property tax allocations to cities and counties as the allocations existed in June 1992. A summary of the Act is included in Attachment A. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE THEIR .�' �3op J� 1 SIGNATURE(S): Tom Torlakson Gay4et?ishop ACTION OF BOARD ON October 18, 1994 APPROVED AS RECOMMENDED X OTHER X APPROVED the report and REFERRED the issue to Supervisor Smith as the County's representative to CSAC for action on a State Constitutional Revision to restore property tax revenues to the local level . VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT I I ) 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. ATTESTED October 18, 1994 Contact: PHIL BATCHELOR.CLERK OF THE BOARD OF CC: County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR Assessor Auditor Tax Collector Local 1230, Russ Greenlaw— , BY DEPUTY Supv. Smith Page 2 However, the CSAC Board of Directors decided in the Spring to abandon plans to qualify a measure for the ballot in November. Apparently, the plans were dropped because of the cost involved in qualifying a measure for the ballot and the potential for reform through the newly created State Constitutional Revision Commission. This new Commission, composed of 23 independent citizens, is charged with preparing findings and recommendations for improving the following areas: 1. the process by which the state budget is formulated and enacted; 2. the structure of state governance as it relates to enhanced accountability and coherent policy formulation and implementation; and 3. the current configuration of state and local responsibilities and priorities with an emphasis on improved service delivery. A copy of the legislation creating the Commission is included as Attachment B. ABAG has drafted a list of proposed constitutional changes which is currently being reviewed by its member's legislative bodies. The ABAG plan calls for adoption of Constitutional changes by its General Assembly on December 9 and subsequent submission of documents to the Governor, Legislature, and the Constitutional Revision Commission. The Finance Committee discussed the material cited above and decided to request the Board to notify CSAC and the State Constitutional Revision Commission to express the County's well established views on the restoration of property tax revenue. Also, the Committee felt that the Board communicate with the Governor and protest his veto of scarce property tax administration monies that would have augmented the budgets of the Assessor, Auditor and Tax Collector Departments. ATTACHMENT A • THE LOCAL GOVERNMENT REFORM AND ACCOUNTABILITY ACT OF 1994 The proposed constitutional amendment will realign revenue, responsibility, accountability and service. The cornerstone of the proposal provides a process by which local government is required to examine itself and provide a framework for efficiency and accountability. After extensive public opinion polling, the CSAC Constitutional Amendment Study Task Force is recommending a constitutional amendment that does the following: • Intent language that specifies the method by which counties must convene a hearing on local government efficiency and provide a report to the public on recommended changes and consolidations; by January, 1996, each board of supervisors must hold hearings involving cities, special districts, schools and county services to examine the most efficient and effective methods by which to deliver services locally. The county must also deliver a report to the public on its findings and suggested methods for accomplishing community change. Every five years, the board of supervisors must update the report and hold additional hearings. • A return of the property tax allocations as they existed in June, 1992, for cities, counties and dependent special districts. School districts continue to receive their guaranteed property taxes as provided in Proposition 98. • A constitutional guarantee of sales tax base revenues as of June, 1992; • A constitutional guarantee of vehicle license fee base revenues as of June, 1992; • A constitutional guarantee of realignment revenue as prescribed by legislation in 1991 and 1993; • A strengthened provision regarding unfunded mandates, which requires full funding in order to make a mandate operative; • A provision that makes any mandate or higher level of service ordered by the court a state mandate; • A reaffirmation of the tenants of Proposition 98, the school financing initiative and a reaffirmation of the responsibility of the state to fully fund education as a priority of the general fund; • A return of the half-cent sales tax from Proposition 172 to the state general fund or to a special fund in the state budget; • A constitutional guarantee of funding for public protection as provided in Proposition 172 through the use of local revenues as provided in the transfer. The initiative was crafted carefully to avoid conflict with other local government units, and provides benefits and guarantees to schools, cities and dependent special districts. It also recognizes the public desire for efficiency and waste reduction. It takes the first steps toward renewing California governance and creating the nexus between responsibility, revenue and service delivery. ATTACHMENT B Senate Bill No. 16 CHAPTER 1243 An act to add and repeal Article 1.5 (commencing with Section 8275) of Chapter 3.5 of Division I of Title 2 of the Government Code, relating to the California Constitution Revision Commission,making an appropriation therefor,and declaring the urgency thereof,to take effect immediately. [Approved by Governor October 11, 1993. Filed with Secretary of State October 11, 1993.] LEGISLATIVE COUNSELS DIGEST SB 16, Killea. California Constitution Revision Commission. (1) The California Constitution authorizes the Legislature to propose revisions to that document. Existing law creates in state government the California Law Revision Commission to examine the common law and statutes of the state and judicial decisions for the purpose of discovering defects and anachronisms in the law and recommending needed reforms to the Governor and the Legislature. This bill would create the California Constitution Revision Commission, prescribe its membership, and specify its powers and duties. The measure would require the commission to submit a report to the Governor and the Legislature no later than August 1, 1995, that sets forth its findings with respect to the formulation and enactment of a state budget and recommendations for the improvement of that process. The commission would also be required to report on specified issues relating to the structure of state governance. (2) The provisions relating to the commission would become inoperative on July 1, 1996, and would be repealed as of January 1, 1997. (3) The bill would also appropriate $200,000 for the 1993-94 fiscal year to the commission to carry out its duties and responsibilities. (4) The bill, in addition, would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares the following: (a) California's budget process has become crippled by a complex entanglement of constraints that interfere with an orderly and comprehensive consideration of all fiscal matters.A complete review of the process by an independent citizens' commission would provide the Legislature a basis for considering changes that would 93 100 Ch. 1243 —2— result in a more thoughtful and deliberative process. (b) The legislative process has at times become mired in gridlock. Rivalries between the two houses of the Legislature and the executive branch have deterred the state's ability to make significant policy changes in response to the changilig times. Changes to existing government organizational structures may provide a' more responsive and productive form of governance for California than the current system. (c) California's existing "system" of government is dysfunctional and does not work together sufficiently to achieve the public's goals. The various components have no common conception of mission and often work at cross-purposes. SEC. 2. Article 1.5 (commencing with Section 8275) is added to Chapter 3.5 of Division I of Title 2 of the Government Code, to read: Article 1.5. California Constitution Revision Commission 8275. There is created in state government the California Constitution Revision Commission. 8275.1. (a) The commission shall consist Of 23 members, as follows: (1) Ten members appointed by the Governor. No more than six members may be registered with the same political party. (2) Five members appointed by the Speaker of the Assembly. No more than three members may be registered with the same political party. Two members shall be appointed in consultation with the Assembly Minority Caucus. (3) Five members appointed by the Senate Committee on Rules. No more than three members may be registered with the same political party.Two members shall be appointed in consultation with the Senate Minority Caucus. (4) The Chief Justice of California, or his or her designee. (5) The Legislative Analyst, or his or her designee. (6) The Director of Finance, or his or her designee. The Governor, the Senate Committee on Rules, and the Speaker of the Assembly may each appoint no more than one Member of the Legislature to the commission. No lobbyist, as -defined in Section 82039, may serve as a member of the commission. The membership of the commission shall broadly reflect the ethnic, racial, cultural, geographic, and gender diversity of the state. (b) The initial appointments to the commission shall be made not later than 90 days after this article becomes operative. 8275.2. Each member of the commission shall serve without compensation, but each member other than an elected officer shall receive one hundred dollars ($100) for each day while on official business of the commission. In addition, each member shall also be entitled to receive necessary expenses actually incurred in the performance of his or her duties. 93 120 -3— Ch. 1243 8275.3. (a) The Governor shall select one of the members as the k. chair of the commission. ie (b) The commission may appoint an executive secretary and fix it his or her compensation in accordance with law. The commission _g may employ and fix the compensation,in accordance with law,of any e professional, clerical, and other assistants that may be necessary. n (c) The Legislative Counsel, Legislative Analyst, State Auditor, and the Department of Finance shall assist the commission in the 31 performance of its duties. S. 8275.4. The commission shall assist the Governor and the d Legislature by doing the following: (a) Examining the process by which a budget is formulated and :o enacted by state government, the manner in which the budget serves the future needs of the state, the appropriate balance of resources and spending by the state, and the fiscal relations of the state, federal, and local governments, and any constraints and impediments that interfere with an orderly and comprehensive a consideration of all fiscal matters that impact upon the development of a budget for the state. L (b) Examining the structure of state governance and proposed modifications that may increase accountability and improve the L process of. formulation, consideration, and approval of policy determinations and a budget for the state. o (c) Examining the current configuration of state and local d government duties,responsibilities,and priorities;the fiscal relations e of state and local governments; the types of services delivered; mechanisms of service delivery; desired program outcomes; and S. methods of performance measurement; and any constraints or e impediments that interfere with the most effective allocation of state h and local responsibilities. (d) Examining the feasibility of integrating community resources into service delivery mechanisms in order to reduce duplication and increase efficiency, and the feasibility of community coalitions making recommendations to local entities regarding a community's ,r vision and goals. e 8275.5. The commission shall submit a report to the Governor n and the Legislature no later than August 1, 1995, that sets forth its P findings with respect to the mandate in Section 8275.4. The l� commission should submit interim reports before that date whenever it makes a finding and recommendation on a specific ,t topic. 8275.6. In carrying out its duties and responsibilities, the :t commission shall have the following powers: u (a) To meet at times and places as it may deem proper. The a commission is a state body subject to the provisions of the e Bagley-Keene Open Meeting Act (Article 9 (commencing with e Section 11120) of Chapter 1 of Part 1 of Division 3). (b) To issue subpoenas to compel the attendance of witnesses and A 93 150 Ch. 1243 —4— the production of books, records, papers, accounts, reports, and documents. (c) To administer oaths. (d) To contract, as it deems necessary, for the rendition of servic-s'facilities, studies, and reports to the commission as will best assist it to carry out its duties and responsibilities. (e) To cooperate with and to secure the cooperation of county, city, city and county, and other local law enforcement agencies in investigating any matter within the scope of its duties and responsibilities,and to direct the sheriff of any county or any marshal to serve subpoenas, orders, and other process. (f) To secure directly from every department, agency, or instrumentality full cooperation, access to its records, and access to any information, suggestions, estimates, data, and statistics that it may have available. (g) To do any and all things necessary or convenient to enable it fully and adequately to perform its duties and to exercise the powers expressly granted to it. 8275.7. This article shall become inoperative on July 1, '1996, and, as of January 1, 1997,is repealed, unless a later enacted statute,which becomes effective on or before January 1, 1997,deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 3. The sum of two hundred thousand dollars ($200,000) is hereby appropriated from the General Fund for the 1993-94 fiscal year to the California Constitution Revision Commission established by this act to carry out its duties and responsibilities under this act. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace,health, or safety within the meaning of Article IV of the Constitution and shall go into inc�mediate effect. The facts constituting the necessity are: In order for the California Constitution Revision Commission, created by this act, to carry out its functions and duties as soon as possible, it is necessary that this act take effect immediately. 0 93 160 Contra Costa County I.A.F.F.LOCAL 1230��jy RUSSELL S. GREENLAW PRESIDENT RES. (510)803-9008 PGR. (510) 702-2740 112 BLUE RIDGE DRIVE 510/932 1230 MARTINEZ,CA 94553 FAX 510/932-1521