HomeMy WebLinkAboutMINUTES - 06251991 - 1.94 ` *. 1 q41
TO: BOARD OF SUPERVISORS
Contra
FROM: Phil Batchelor, County Administrator X
Costa
_ County
DATE: lune 24 1991 '='" �`
� / 5).q�C'U(IF�
SUBJECT:
LEGISLATION: AB 2237 (Hannigan)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)$BACKGROUND AND JUSTIFICATION
RECOP94EbiDATION:
Adopt a position in SUPPORT of AB 2237 (Hannigan) which will
provide the replacement revenue for that which will be lost
through the repeal of the booking fee and property tax
administration fee provisions of SB 2557 .
BACKGROUND:
As the Board of Supervisors is well aware, the enactment of SB
2557 as a part of the budget crisis of 1990 created more hard
feelings among local government agencies than almost any other
action which might have been taken by the Legislature. it
required cities, school districts and other special districts - to
pay counties for the costs associated with booking prisoners in
the county jail and required local government agencies to pay the
county for their proportionate share of the cost of assessing,
collecting and distributing the property tax. These measures
might have been acceptable to local governments if the
legislation had been enacted well in advance of the beginning of
the fiscal year so that local governments had an opportunity to
plan for this additional expenditure demand. However, the
legislation was enacted at the end of July, 1990, fully one month
into the new fiscal year, with little if any advance notice to
the affected local governments. As a result, we have confronted
the situation with which the Board has been faced all year.
CONTINUED ON ATTACHMENT: -RYES SIGNATURE:
_1 RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE `
1 APPROVE OTHER
SIGNATURES Latz�
ACTION OF BOARD ON 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: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
cc: See Paqe 3. ATTESTED JUN 2 5 M1
PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382 (10/88) BY
,DEPUTY
-2-
There is general agreement in the Legislature that it is
necessary to repeal at least the booking fee and property tax
administration fee provisions of SB 2557 . There is also a
commitment on the part of the Governor and many members of the
Legislature to insure that counties are held harmless as a result
of such a repeal - that a replacement source of revenue is
identified and made available to counties.
The vehicle which has been identified for the purpose of enacting
such replacement revenue is AB 2237 (Hannigan) . Several possible
revenue sources have been discussed over the past several weeks.
None has been able to garner sufficient support from both Houses
of the Legislature plus the Administration. The current source
of revenue which is being discussed is the additional income tax
revenue which will be generated by reducing the deductibility of
business meals from 800 of actual cost to 50% of actual cost.
At this point it probably less important to support any specific
revenue source than it is to support the following principles:
1 . Any revenue source which is selected must reimburse counties
for 100% of their actual losses, particularly for those
counties which, like Contra Costa County, imposed both the
booking fee and the property tax administration fee for the
full 1990-91 fiscal year and have anticipated this revenue
in the 1992-92 fiscal year budget.
2. In the case of counties which may have imposed either the
booking fee or property tax administration fee in the
1990-91 fiscal year at less than the full value or for less
than the full fiscal year or which did not impose them for
the 1990-91 fiscal but fully anticipated doing so for the
1991-92 fiscal year, an equitable formula must be agreed
upon which will recognize sincere and legitimate plans to
impose either or both of these revenue sources for the
1991-92 fiscal year, without rewarding counties which did
not impose these revenue sources and had no intention of
doing so.
3 . To the maximum extent possible, the identified revenue
source should be guaranteed to counties and not be subject
to the annual controversy surrounding the efforts to balance
the State Budget.
4. If the business meal deduction proves not to be an
. acceptable source of revenue, the Board should encourage the
use of one of the following revenue sources:
A. A further adjustment in the Vehicle License In-Lieu
Fee.
B. Elimination of the sales tax exemption for
entertainment. The bulk of these funds will go to the
cities on the basis of the present "situs" basis for
distribution of the sales tax. Therefore, the
Legislature should provide for a dollar for dollar
offset in a city' s Vehicle License In-Lieu Fee revenue
to offset the "windfall" from the elimination of this
sales tax exemption.
C. A statewide utility users' tax, with 100% of the
proceeds of the tax imposed in each county allocated to
the county, regardless of whether the utility use
occurs in the unincorporated or incorporated area of
the county.
-3-
Failure to enact a secure, 100% replacement revenue source to
offset the repeal of the booking fee and property tax
administration fee will result in massive program reductions in
the health care and criminal justice systems in Contra Costa
County. As the Board will recall, the booking fee generated $1 . 1
million in the 1990-91 fiscal year. All of this revenue was
dedicated to the courts and the criminal justice system. The
property tax administration fee was dedicated in its entirety to
the health care system in the county. This amounted to $5 . 7
million. We have anticipated this revenue in our plans for the
1991-92 County Budget. The absence of this revenue or a secure
replacement for it will leave us no choice but to recommend that
the Board reduce the criminal justice system and the health care
system to the same extent that they received funds from SB 2557
in the 1990-91 fiscal year.
cc: County Administrator
Health Services Director
County Clerk-Recorder
Superior Court Administrator
Municipal Court Administrator
District Attorney
Public Defender
Sheriff-Coroner
County Probation Officer
George Roemer, Director
Justice Systems Programs
Fran Ward, Deputy County Administrator
Tony Enea, Deputy County Administrator
Larry Naake, Executive Director, CSAC
Les Spahnn, SRJ. Jackson, Barish & Associates
Legislative Delegation:
Senator Boatwright
Senator Petris-
Assemblyman Baker
Assemblyman Bates
Assemblyman Campbell
Assemblyman Isenberg