HomeMy WebLinkAboutMINUTES - 02231999 - C56 TO: BOARD OF SUPERVISORS � Contra
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FROM, PHIL BATCHELOR, COUNTY ADMINISTRATORCosta
County
February 15, 1999
DATE:
SUBJECT: LEGISLATION: AE 304 (WILDMAN)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)S BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in SUPPORT of AE 304 by Assemblyman Scott Wildman of
Glendale which would reduce the County's contribution to the Educational Revenue
Augmentation Fund (ERAF) by an unspecified amount each year.
BACKGROUND:
The Board's 1999 Legislative Program contains a provision that the Board will
"Support the efforts of CSAC and the Urban Counties Caucus to at least cap the
growth of ERAF, and preferably begin to return some of the base to counties and
cities."
The Board has previously supported AB 24 and SB 155 which also reduce the
amount of the County's contribution to the ERAF.
Assemblyman Wildman has introduced AB 304 which, as introduced, contains an
expression of legislative intent to reduce the contributions to the ERAF by 10% each
year until it is reduced to zero. The actual statutory language does not yet specify
a percentage, but presumably it will be amended into the bill at a later date.
Since AB 304 appears to be consistent with the Board's adopted 1999 Legislative
Program, it would be appropriate for the Board to indicate its support for AB 304.
CONTINUED ON ATTACHMENT: --YES it6rNA"IJR£:
RECOMMENDATION Cc COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROV1E OTHER
SIGNATURES: {
ACTION OF BOARD Ortel �tpmhr 1 qqq �...-APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ...�a ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED February 23. 1999
Contact: See Mage 2 PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: SUPERVISORS A D CJvf*TY ADIVi IISTRATOR
BY UZt DEPUTY
cc. County Administrator
Auditor-Controller
'bony Enea, Senior Deputy County Administrator
Assemblyman Scott Wildman
Room 4158 State Capitol
Sacramento, CA 95814
Les Spahnn
Heim, Noack, belly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
-2-
CALIFORNIA LEGISLATURE-1993-2000 REGULAR SESSION
ASSEMBLY BILL No. 304
Introduced by Assembly Member Wildman
February 8, 1999
An act to amend Section 41204.1 of the Education Code, and
to add Section 97.43 to the Revenue and 'laxation Code,
relating to local government finance, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 304, as introduced, Wildman. Local government
finance: property tax revenue allocation: local agency relief.
Existing property tax law requires the county auditor, in
each fiscal year, to allocate property tax revenue 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 modifications, and that jurisdiction's portion
of the annual tax increment, as defined. Existing property tax
law also reduces the amounts of ad valorem property tax
revenue that would otherwise be annually allocated to the
county, cities, and special districts pursuant to these general
allocation requirements 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
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AB 304
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
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 1999-2000 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:
I SECTION 1. The Legislature hereby finds and
2 declares that it is the intent of the Legislature in enacting
3 this act to do all of the following:
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1 (a) Limit the amounts of property tax revenues that
2 are shifted from counties, cities, and special districts to
3 Educational Revenue Augmentation Funds to those
4 amounts that were so shifted in the 1998-99 fiscal year.
5 (b) Annually reduce the total amount of revenues that
6 are shifted to Educational Revenue Augmentation
7 Funds, estimated to be three billion four hundred million
8 dollars ($3,400,000,000) each year, by 10 percent per year
9 until the total amount of revenues that are so shifted is
10 reduced to zero.
11 (c) Ensure that those changes specified in this section
12 are made only after all calculations are made with respect
13 to those revenues that are to be allocated pursuant to
14 Section 8 of Article XVI of the California Constitution, in
15 order to ensure that schools, from the kindergarten level
16 to the community college level, 'inclusive, are fully
17 funded.
18 SEC. 2. Section 41204.1 of the Education Code is
19 amended to read:
20 41204.1. (a) (1) Pursuant to paragraph (2) of
21 subdivision (b) of Section 41204, the Director of Finance
22 shall annually adjust "the percentage of General Fund
23 revenues appropriated for school districts and
24 community college districts, respectively, in the 1986-87
25 fiscal year" for purposes of applying paragraph (1) of
26 subdivision (b) of Section 8 of Article XVI of the
27 California Constitution, to reflect those property tax
28 revenue allocation modifications, required by the
29 amendments made to Chapter 6 (commencing with
30 Section 95) of Part 0.5 of Division 1 of the Revenue and
31 'Taxation Code by 4te— t adding wh}s seer on. qualifying
32 provisions, as defined in paragraph (2), in a manner that
33 ensures that those modifications will have no net fiscal
34 impact upon the amounts that are otherwise required to
35 be applied by the state for the support of school districts
36 and community college districts pursuant to Section 8 of
37 Article XVI of the California Constitution.
38 (2) For purposes of this section, "qualifying
39 provisions" means both of the following:
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AB 304 —4-
1
4-.--
1 (A) The amendments mane to Sections 97.2 and 97.3
2 of the Revenue and Taxation Code by Chapter 1.111 of the
3 Statutes of 1996.
4 (B) Section 97.43 of the Revenue and Taxation Code.
5 (b) It is the intent of the Legislature in enaefiftg---+he
6 aef ftddiitg this seetieft to ensure both of the following:
7 (1) That the changes required by the tom—adding this
8 seems qualifying provisions in the allocations of ad
9 valorem property tax revenues do not have a net fiscal
10 impact upon school districts, as defined in accordance
11 with Section 41302.5, or community college districts.
12 (2) That the changes required by the at—phis
13 seetien qualifying provisions in the allocations of ad
14 valorem property tax revenues do not have a net fiscal
15 impact upon the amounts of revenue otherwise required
16 to be applied by the state for the support of school districts
17 and community college districts pursuant to Section 8 of
18 Article XVI of the California Constitution.
19 SEC. 3. Section 97.43 is added to the Revenue and
20 Taxation Code, to read:
21 97.43. (a) (1) Notwithstanding any other provision
22 of this article, for purposes of ad valorem property tax
23 revenue allocations for the 1999-2000 fiscal year and in
24 each fiscal year thereafter, the auditor shall allocate to the
25 county's Educational Revenue Augmentation Fund only
26 that percentage specified in paragraph (2) of each
27 amount of ad valorem property tax revenue that is
28 required to be allocated to that fund rather than a local
29 agency as a result of the total reductions calculated for
30 that local agency pursuant to Sections 97.2 and 97.3.
31 (2) For purposes of paragraph (1), the allocation
32 percentagesare as follows:
33
34 Fiscal Year Percentage(%)
35 1999-2000
36 and each fiscal year thereafter 0
37
38 (b) In the 1999-2000 fiscal year and each fiscal year
39 thereafter, any amount of ad valorem property tax
40 revenue that is not allocated to a county's Educational
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1 Revenue Augmentation Fund as a result of any limit or
2 reduction established in subdivision (a) shall instead be
3 allocated among the local agencies in the county in
4 accordance with each local agency's proportionate share
5 of the total amount of ad valorem property tax revenues
6 that would be required to be allocated to the county's
7 Educational Revenue Augmentation Fund in the absence
S of this section.
9 SEC. 4. No reimbursement is required by this act
10 pursuant to Section 6 of Article XIII B of the California
11 Constitution because this act provides for offsetting
12 savings to local agencies or school districts that result in
13 no net costs to the local agencies or school districts, within
14 the meaning of Section 17556 of the Government Code.
15 SEC. 5. This act is an urgency statute necessary for the
16 immediate preservation of the public peace, health, or
17 safety within the meaning of Article IV of the
18 Constitution and shall go into immediate effect. The facts
19 constituting the necessity are:
20 In order to commence as soon as possible a program of
21 fiscal relief that will allow local agencies to restore an
22 adequate level of essential public services, it is necessary
23 that this act tape effect immediately.
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