HomeMy WebLinkAboutRESOLUTIONS - 01012003 - 2003-056 tZ
In the Matter of urging )
The C'overnor& C.srllfornia 401sture)
To restore the Vehicle License Fee ) RESOLUTION NO. 2003156
WF1RRE46: prior to 1935, California cities and counties collected property taxes on motor vehicles to fund essential local public
health and safety services. In 1935, the Legislature first enacted the Vehicle License Fee Act, replacing the property tax on vehicles
with a 1.75 percent fee charged against the value of the motor vehicle. In 1948, the rate of the VLF was increased to 2 percent of the
value of the vehicle;and
WHEREAS, in 1986, the voters voted overwhelmingly to constitutionally dedicate the proceeds of the VLF to fund city and county
services;and
WHEREAS, in 1998, a period of strong economic growth, the Legislature approved the use of a portion of the rapidly growing state
General Fund to reduce the VLF payments of vehicle owners. This amount, know as the offset", grew in future years to a 67.5
percent offset against the amount owed. The amount paid to local governments in lieu of the reduced VLF payment is known as the
"VLF backfill";and
WHEREAS, the 1998 legislation and subsequent enactments contain clear provisions that when insufficient funds are available to
be transferred from the General Fund to fully fund the offsets and backfill amount, then the VLF offset shall be reduced and the VLF
payments increased;and
WHEREAS, VLF and backfill revenues constitute 15 to 25 percent of typical city and county gener4purpose revenues. On average,
more than 60 percent of city general fund spending and more than half of county general funds go to front line law enforcement, fire,
emergency medical services, and health care programs. These funds are of critical importance in funding vital local public health and
safety services;and
WHEREAS, if the Legislature chooses not to maintain the VLF backfill or to restore the VLF, it will cause widespread disruption in
local government services essential to the wellbeing of California citizens and their cities and counties;and
WHEREAS, Governor Davi'proposal to divert$4 billion in local VLF backfill payments over the nett 17 months fails to honor the
1998 commitment of funds;and
WHEREAS, shifting$4.2 billion in locally controlled revenues for local services is neither equitable nor fair. No state program or
department has been asked to shoulder such a disproportionate share of the budget pain. These cuts come on top of the nearly $5
billion each year that is transferred from local services to fund state obligations.
NOW, THEREFORE, BE 1'T RESOLVED that the BOARD OF SUPERVISORS OF COATRA COSTA
COLW7Y;respectfully urges the Legislature and the Governor of California to implement the provisions of current law and restore
the VLF in an amount to reduce the VLF backfill;and
RESOLVED FURTHER, that the County of Contra Costa hereby expresses its profound appreciation to the legislators who
support such VLF restoration legislations.
PASSED AND ADOPTED on February 4, 2003 by a unanimous vote of the Board members present.
1
Mark DeSaulnier, Chairman '
An Gioia Gayle
ABSENT
Donna Gerber Federal D.Glover
1 hereby certify that the foregoing is a true and correct copy of
an order entered on the Minutes of said Board of Supervisors on
the aforesaid date.
Witness my hand and the Seal of the Board of Supervisors
affixed this 4th day of February 2003.
JOHN SWEETEN, Clerk of the Board of Supervisors and
Cou nim,
By j� Deputy Clerk
Introduced.by Chairman Mark DeSaulnier, District IV