HomeMy WebLinkAboutMINUTES - 10181994 - FC.2 71)
TO: BOARD OF SUPERVISORS
SE,•` Contra
FROM: ./
Finance Committee, Tom Torlakson
Costa
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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
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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
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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.
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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
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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.
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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