HomeMy WebLinkAboutMINUTES - 01281997 - C30 TO: BOARD OF SUPERVISORS sE L Contra
FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR
Costa
- County
DATE: January 15, 1997 v
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SUBJECT: LEGISLATION: AB 95(SWEENEY) - GRADUAL RETURN OF THE
PROPERTY TAX TRANSFER TO LOCAL GOVERNMENTS
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in SUPPORT of Assembly Bill 95 (AB 95) by Assemblyman Mike
Sweeney which would reduce the property tax transfer to the State and gradually
return it to those local governments from whom it was taken.
BACKGROUND:
The Board of Supervisors has vigorously opposed the transfer of millions of property
tax dollars from the County, cities, and special districts to the State beginning in the
1992-93 fiscal year and continuing to the present. Assemblyman Mike Sweeney has
introduced AB 95 which, as introduced, would do the following:
Effective with the 1997-98 fiscal year, reduce the amount of the reduction and
transfer of the property tax by an as yet unspecified schedule, with the reduced
transfer being allocated back to local taxing jurisdictions in proportion to the amounts
which would otherwise have to be transferred to the State by each jurisdiction.
Having the Legislature place these provisions in State law has the advantage of
allowing the freeze to be implemented a year earlier than is the case with ACA 4,
which must go to the voters in June 1998 for approval. However, having these
provisions in a statute rather than in the Constitution runs the risk of the Legislature
at some time in the future being able to modify or repeal the freeze and transfer back
to local governments. It also requires the approval of the Governor, which a
CONTINUED ON ATTACHMENT: YES SIGNATURE: �jf
F RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON ---Janus y 28, 1 APPROVED AS RECOMMENDED 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.
ATTESTED January 28, 1997
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
CC: SUPERVISORS AND COUNTY ADMINISTRATOR
See Page 2
BY DEPUTY
D
Constitutional Amendment does not. However, it is probably more appropriate to
pursue a statutory solution initially and only turn to the Constitutional Amendment if
a statutory solution proves unsuccessful. We are, therefore, recommending that the
Board of Supervisors support AB 95 as the Board did on January 14, 1997 with a
similar measure, AB 1 (Aguiar).
cc: County Administrator
Auditor-Controller
County Counsel
Tony Enea, CAO's Office
Les Spahnn
Heim, Noack, Kelly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
Casey Sparks, Executive Director
Urban Counties Caucus
1100 K Street, Suite 101
Sacramento, CA 95814
-2-
CALIFORNIA LEGISLATURE-1997-98 REGULAR SESSION
ASSEMBLY BILL No. 95
Introduced by Assembly.Member Sweeney
January 6, 1997
An act to add Section 41204.1 to the Education Code, and to
add Section 97.43 to the Revenue and Taxation Code, relating
to local government finance, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 95, as introduced, Sweeney. Local government
finance: property tax revenue allocation: local agency relief.
Existing law requires the county auditor, in each fiscal year,
to allocate property tax revenues to local jurisdictions in
accordance with specified formulas and procedures, and
generally requires that each jurisdiction be allocated an
amount equal to the total of the amount of revenue allocated
to that jurisdiction in the prior fiscal year, subject to certain
ksY modifications, and that jurisdiction's portion of the annual tax
increment, as defined. Existing property tax law modifies
these general allocation provisions by requiring, for purposes
of determining property tax revenue allocations in each
county for the 1992-93 and 1993-94 fiscal years, that the
amounts of property tax revenue deemed allocated in the
prior fiscal year to the county, cities, and special districts be
reduced in accordance with certain formulas. It requires that
the revenues not allocated to the county, cities, and special
districts as a result of these reductions be transferred to the
Educational Revenue Augmentation Fund in that county for
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AB 95 — 2 —
allocation to school districts, community college districts, and
the county office of education.
This bill would modify these reduction and transfer
requirements, commencing with the 1997-98 fiscal year, by
requiring that each reduction and transfer amount calculated
for a local agency in a county be annually reduced in
accordance with an unspecified schedule, and that the
revenues not allocated to the county's Educational Revenue
Augmentation Fund as a result of these reductions be instead
allocated among the local agencies in the county, as provided.
By imposing new duties in the annual allocation of ad valorem
property tax revenues, this bill would impose a
state-mandated local program.
This bill would also state the intent of the Legislature, and
would require the Director of Finance to make certain
adjustments, with respect to ensuring that the modifications
required by this bill to property tax revenue allocations do not
have a net fiscal impact on school districts or community
college districts, or upon the state's obligation under the
California Constitution to provide funding to those districts.
The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated
by the state. Statutory provisions establish procedures for
making that reimbursement.
This bill would provide that no reimbursement is required
by this act for a specified reason.
This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows.•
1 SECTION 1. Section 41204.1 is added to the
2 Education Code, to read:
3 41204.1. (a) Pursuant to paragraph (2) of subdivision
4 (b) of Section 41204, the Director of Finance shall
5 annually adjust "the percentage of General Fund
6 revenues appropriated for school districts and
7 community college districts, respectively, in the 1986-87
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tnd 1 fiscal year," for purposes of applying paragraph (1) of
2 subdivision (b) of- Section 8 of Article XVI of the
.fer 3 California Constitution, to reflect those property tax
by 4 revenue allocation modifications, required by the
ted 5 amendments made to .Chapter 6 (commencing with
in 6 Section 95) of Part 0.5 of Division 1 of the Revenue and
the 7 Taxation Code by the act adding this section, in a manner
sue 8 that ensures that those modifications will have no net
gad 9 fiscal impact upon the amounts that are otherwise
ed. 10 required to be applied by the state for the support of
em 11 school districts and community college districts pursuant
a 12 to Section 8 of Article XVI of the California Constitution.
13 (b) It is the intent of the Legislature in enacting the
ind 14 act adding this section to ensure both of the following:
.ain 15 (1) That the changes required by the act adding this
ons 16 section in the allocations of ad- valorem property tax
not 17 revenues do not have a net fiscal impact upon school
lity 18 districts, as defined in accordance with Section 41302.5, or
the 19 community college districts.
�ts. 20 (2) That the changes required by the act adding this
,.rse 21 section in the allocations of ad valorem property tax
ted 22 revenues do not have a net fiscal impact upon' the
for 23 amounts of revenue otherwise required to be applied by
24 the state for the support of school districts and
red 25 community college districts pursuant to Section 8 of
26 Article XVI of the California Constitution.
:ely 27 SEC. 2. Section 97.43 is added to the Revenue and
28 Taxation Code, to read:
,yes. 29 97.43. (a) (1) Notwithstanding any other provision
30 of this article, for purposes of ad valorem- property tax
31 revenue allocations for the 1997-98 fiscal year and in each
Ws., 32 fiscal year thereafter, the auditor shall allocate to the
33 county's Educational Revenue Augmentation Fund only
the 34 that percentage specified in paragraph (2) of each
a , 35 amount of ad valorem property tax revenue that is
lion 36 required to be allocated to that fund rather than a local
hall 37 agency as a result of the total reductions calculated for
ind 38 that local agency pursuant to Sections 97.2 and 97.3.
ind 39 (2) For purposes of paragraph (1) , the allocation
-87 r 40 percentages are as follows:
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AB 95 — 4 -
1
4 -1 Fiscal Year Percentage (%)
2 1997-98
3 and each fiscal year thereafter 0
4
5 (b) In the 1997-98 fiscal year and each fiscal year
6 thereafter, any amount of ad valorem property tax
7 revenue that is allocated to a county's Educational
8 Revenue Augmentation Fund as a result of any limit or
9 reduction established in subdivision (a) shall instead be
10 allocated among the local agencies in the county in
11 accordance with each local agency's proportionate share
12 of the total amount of ad valorem property tax revenues
13 that would be required to be allocated to the county's
14 Educational Revenue Augmentation Fund in the absence
15 of this section.
16 SEC. 3. No reimbursement is required by this act
17 pursuant to Section 6 of Article XIII B of the California
18 Constitution because this act provides for offsetting
19 savings to local agencies or school districts that result in
20 no net costs to the local agencies or school districts, within
21 the meaning of Section 17556 of the Government Code.
22 Notwithstanding Section 17580 of the Government
23 Code,unless otherwise specified, the provisions of this act
24 shall become operative on the same date that the act
25 takes effect pursuant to the California Constitution.
26 SEC. 4. This act is an urgency statute necessary for the
27 immediate preservation of the public peace, health, or
28 safety within the meaning of Article IV of the
29 Constitution and shall go into immediate effect. The facts '
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30 constituting the necessity are:
31 In order to commence as soon as possible a program of
32 fiscal relief that will allow local agencies to restore an
33 adequate level of essential public services, it is necessary
34 that this act take effect immediately. ;
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