Loading...
HomeMy WebLinkAboutMINUTES - 04061993 - S.4 TO: BOARD OF SUPERVISORS Contra �.• FROM: Supervisor Tom Torlakson „ _ < Costa County Aril 6 1993 a DATE: SUBJECT: REPORT ON .FISCAL UNITY SUN IIT II 1 SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION: '(1 ) Acknowledge receipt of Summary of Proceedings and Outline of Action Plan developed at the Fiscal Unity Summit II held on January 16 , 1993 . ( 2 ) Adopt the attached resolution urging all local government elected officials to adopt a legislative strategy. ( 3 ) Direct the County Administrator to prepare a letter for the Chair' s signature to the Alameda County Board of Supervisors urging them to adopt the same resolution. (4 ) Acknowledge staff assistance provided by District -V staff in planning the summit. BACKGROUND INFORMATION: The Fiscal Unity Summit II which took place on January 16, 1993, brought together a large and diverse group of elected officials representing both.;;Alameda County and Contra Costa County. The summit promoted the concept which we adopted in 1991 of school districts, cities, special districts and the county working .together to establish fiscal ,stability by providing mutual support for one another' s efforts to increase a stable source of revenue and encouraged cost savings ventures such as consolidation of services and/or elimination of duplicated services, inter-agency services, contracts, or joint powers authorities . CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON A ri 1 61 1993 "APPROVED AS RECOMMENDED X OTHER r VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE —&UNANIMOUS(ABSEAND 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: County Administrator ATTESTED J41e PHIL BAT HELOR.CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMJNISTRATOR BY ,DEPUTY M382 (10/88) . A . ' IN THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY,CALIFORNIA IN THE MATTER OF RESOLUTION NO. 93/173 Supporting a Legislative Program Addressing Local Government Financing WHEREAS,local government units in California are experiencing traumatic shortfall of revenues and increasing demands for government services;and . WHEREAS,the State government,in response to its financial shortfalls has seen fit to redistribute the revenues among local governments further impacting the revenue%xpenditure shortfall already being experienced because of th nationwide recession;and WHEREAS,the Legislature and Federal Government continues to impose new program requirements;thus,increas- ing costs without like revenue to cover,and .,..WHEREAS,there has not been a comprehensive review of the taxing and revenue-raising abilityof local government in this century,and WHEREAS,the deteriorating situation at the local government level is bordering on economic chaos and action must be taken;and WHEREAS,at the recent Contra Costa/Alameda County Fiscal Unity Summit of all local governments in this two- county area,a comprehensive action program was developed calling for legislative action,expended economic development efforts,and innovation in local program service delivery leading to decreased costs and a review of the taxing structure of California. NOW,THEREFORE,BE IT RESOLVED that the Contra Costa County Board of Supervisors does hereby proclaim our commitment to join forces with other local government units and specifically put forth a legislative program addressing the following: •Freeing local governments from specific mandates unless funding is provided; •Encouraging local agencies to act in an innovative, entrepreneurial mnner by repealing laws that impede such actions; •Calling for adoption of the State Budget by a majority vote of the legislature; •Requiring a simple majority vote on bond issues and taxes where the law requires such a vote;and •Calling for specific revisions to the tax system so that it better meets the needs of the California economy for,the future. PASSED by unanimous vote of the Board Members present on April 6 ..1993. I certify that the foregoing is a true and correct copy of an Order entered onto the minutes of said Board of Supervisors on the date aforesaid. Witness my Hand and the Seal of the Board of Supervisors affixed April 6 ,1993. 1 PHIL BATCHELOR,Clerk of the Board /�„ � ��✓, of Supervisors and County Administrator Supervisor Tom Torlakson,Chair ay. zq District :v uty elerk SS pervisor Tom ower,District l Supervisor Gayle Bishop,District III to o Super�viso J ff Smith,District 11 Supervisor Sunne Wright McPeak, District IV APR - 1 - 93 THU 15 .: 41 @ P . 03 Fi � s cal U ..I. \ \. u mit 11 New Visions for Government ction March 1993 APR - 1 - 9Z THU 15 : 42 0 *P Report on Fiscus Unity Summa II: New Visions for Government January 16, 1993 • Las Lomas High School, Walnut Creek Ns conference broke new ground In the political life of Contra Costa and Alameda counties. First, it brought together a large and diverse group of public offidals from two counties to discuss the structural factors In the State's Anandal crisis. Second, a consensus was reached on actions to be taken which, If implemented, will Initiate major changes in the way governments do business. Represented at the conference were 24 cities, the Contra Costa Board of Supervisors, the State Assembty, 12 school boards, 14 special districts and a number of special Interest organizations. (A complete list of participants Is on the last page.) The morning general session featured three speakers:Ted Gaebler. co-author of Relnventlrts Government Bruce Cain, Associate Director of the University of CaliforNa Institute of Govem- ment Studley; and Johan Klehs, Chair of the State Assembly Committee on Revenue and Taxation. During the aftemoon, seven concurrent workshops dealt with specific issues involved in refbrm- Ing governance. These workshops were charged with proposing an action program. The action Items which follow are based on the workshop reports as refined by a panel of elected local officials and the rest of the participants In the final general session. Though no votes were taken, there was a general consensus that these were of priority interest. The conference consid- ered a number of other Ideas but agreed that they needed hutr er study and should be taken up at a future conference. The conference committee Is submitting this report to all those who attended the conference as well as to each of the various jurisdictions Invited to participate, and to the sponsoring bodies. Now Is the time for actions RICHARD G. HEGGiE Conference Chair March 40 1993 APi2 - i - 93 T H U 1 :°5 : 43 +0 P 05 Fiscal Unity Summit II • Action Plan Summit Conference: Action Items a* Develop a legislative action plan that would: • Free local governments from specific mandates Responsibility/Coordinator: unless funding is provided. 9 All local government elected bodies • Encourage local agencies to act In an Innovative, in Alameda/Contra Costa counties entrepeneurtal manner by repealing laws that • Mayors`Conferences Impede such actions. a East Bay Division, League of • CalI for adoption of the State budget by a California Cities majority vote of the Legislature. + League of California Cities • Require a simple majority vote on bond issues + Special District Association and taxes (where the law requires such a vote). • School Boards Association • Call for speciflc revisions to the tax system p.e., • Supervisors Association sales tax on services, etc.) so that It better meets the needs of the Callfomla economy for the future. (Ns will entail considerable research and help from appropriate specialists.) �+ Develop a regional economic development Responslbillty/Coordinator. program. Involve the private sector In Alameda S Contra Costa counties formulating this program. In cooperation (consultation) with other units Responsibtilty/Coordinator. of local government: Fiscal Unity Committee • Catalogue the current joint projects and Innovative efforts that have reduced costs of services, Increased accessiblilty, efficiency and effectiveness. • Explore still further new ways of doing things. Encourage employees to be Innovative by providing Incentives. • Develop a plan for shared local government delivery service. Implement several high proi}le projects for demonstration purposes. • Streamline current operations and concentrate on priority needs. • Study public services that might be privatized and public services now provided by the private sector to determine If current arrangements are efficient and effective, u+ Establish a permanent county-wide Responsibility/Coordinator. structure Inclusive (eventually) of all local Fiscal Unity Committee agencles to: 1 0 J • Oversee all recommendations outlined above. • Develop a political base for change through on-going dialogue with each other and the public. • Work for consensus among local governments. Seek to achleve mutual trust through open and frequent communication. APR — 1 — SS THU 1 ZS ., 44 0 P _ r E+ GOVERNMENT IN CALIFORNIA r "� Angeleno voter was allotted ten minutes in �,,,J the ballot booth to make over 40 different electoral choices, varying from statewide 1 propositions to loa€judgeships;in 1940 the total was over 100.little over 60%ofpoten- tial voters are registered,and of those not 47 much more than half bother to vote even in ppresidential elections.In many elections to Ioca1 office,a candidate can win with the backing of 5%ofthose eligible to vote. Like many crumbling political systems ,-,- before it,California's has encouraged its cit- izens to secede.Rich Californians are flock- ing to self-sufficient, self-governing gated communides—the modem equivalent of a - medieval city states.A row has just broken out in Hollywood over whether inhabitants can block off public roads. Poorer citizens Buckling under the strain secede in a different way.by not taking part in elections.California's voters are whiter, richer and older than its population. When Mr Wilson gave up a safe seat in the United States Serrate to come to sacra- mento in 1991,he was publicly warned that California was "ungovernable". Now Sac. SW Clinton wants to bring about a new era in government. But do America's ramento is dotted with committees of sca- political institutions work?Consider the evidence fxom its lamest state demics and politicians looking at constitu- tional reform.Solutions offered vary from 44ARNING:the Iight at the end of in the words of one local politician,looks altering the ballot-initiative process to split- y ythe tunnel has been delayed."So `as if it had been designed by a child on ting the state into three parts."Everything". reads a small sign in one office in Sacra- LSD". Local (ic, below state level)elective says Sherry 9ebitch lefft:, of Claremont mento,seat of the state government of Cali- power is multiply dispersed: among 58 Graduate School,"is now on the table". fomia.The state is in deep trouble.Its econ- counties, varying from Los Angeles (1990 California's institutional paralysis has omy, the world's seventh-largest,has been population,8.7m)to Alpine(1,220);447 cit- wider implications that stmch far beyond humbled by recession.The Republican gov- ies,as Americans call them,ranging from the sute's boundaries.For a start,Califor- emor,Pete Wilson,and the Democratic leg- Los Angeles(3.4m)to neighbouring Vernon nia, thanks to the ballot-initiative move- islature are stuck in political trench warfare; (80);and more than 5,000 special districts, ment, has been the western world's chief last year the two took 63 days to close a bud- covering everything from sewerage to air test-tube of"direct democracy":its troubles get deficit of to billion--more than the en- quality. raise questions about electronic town halls tire budgets of all but three of America's Many new suburban "edge cities"have state governments. And from Sacramento no formal constitution at all. Even in the Who votes, who doesn't downwards,the state's whole system ofgov- older parts of Los Angeles,a passing police teovrmt»r tsaz r«ttoeu ernment is a shambles. car maybelong to one of a dozen forces.sev- x vossre Administratively,the map of California, oral of the city's mayoral candidata now hat VIW" Restda na advocate breaking up the enormous G Th* market of poilifts 650,000-pupil Los Angela '! Unified School .. 3t s ♦ot]tal spendtn8,ten in 19W donM District—a good idea, but technically not ....... C o �0""�' �........ . � . . w within the mayor's power. Cenvsl Vana7t9 ...........s�........ in Sacramento,roughly 8596 of the lute's __ tratndseo i2 1° proposed $51 billion budget for 1993-94 is outside Mr Wilson's control. It has been 1. ........._...". �! .............:29 yon ...... caned tither by ballot initiatives of XH" 53 41 . are o by f doral law—t division of powers which Race America's founding fathersiii d not antici- white(AM10) 60. 40 Pate. Even within the executive branch. gdKr ii ..S9 e many of the chief officers,such as the tree- , Umme surer and the superintendent of public in. urger 520,000 _.....47 muction,are separately elected—and thus .. have little incentive to help S40,000.-W.000 �t ._......... S9-..... p Mr Wilson. _. .00OdiO... M 63 3>' Faced with this muddle,the electorate is - . . • - __. ... ._._._....._. _ $60,000 thS 74 26 in equal measures angry,bewildered and i,,Q,,,,,w„r uninterested. Last November any Lott live econoaen eseev4at.7Tr 1"S APR-1 1 - 9S T H U 15 : 45 0 P . 07 GOVERNMENT IN CALIFORNIA and instant mfcmndums. Similarly,West Europeans,now toying How It Comes... ...whom It gots with ideas of"subsidiarity"and federalism, CatifuNa's 1993.94 state budget should take a hard look at California's ill- functioning structure of government. Its pwooner multiple layers have often served just as a nen=Ju— s.wa UK rate Nwft Al ""b°""dO°311 complicated channel for the buck to be passed among federal, state and local au- thorities. As with every bad business,it is ' difficult to see where the customers fit in. % % Third,another much vaunted Califor- nian "virtue", which Ronald Reagan „ . (among others)helped to spread,now looks u'see—” —yam to a liability:distrust of gave mment.CaMr- row UK res nia has seen sporadic movements for politi- a,,, &Ws~ cal reform,notably the Progressives at the w pa. fusee r o`r"'"a ir0i"""'"'taw wd U turn of the century. Moro often, though, I a..e....ww.,nr..m.r Californians have thrown their creativity and energy into the private sector.Now the place representative government," argues share swimming pools or,like one city,ban state's distnw of government appears to Bruce Cain.of the University of California people in prison to anothercityas cheap la- have led to a self-fulfilling prophecy:Cali- st Berkeley. Although most budget initia- bour. However, total education spending fomians think government is bad,and bad tives have failed, the cumulative effect of per pupil has dropped rapidly across the their government has become. those that have succeeded is immense. state.As ever,it is the poor who suffer worst. Proposition 98,passed in 1988,ensures Los Angeles county can muster 8,000 beds Propositions for chaos that 40%of the state's general fund is spent for the homeless.It needs 40,000. California's legislature of 6o assembly on education.That maybe a good thing,but Mother victim of this endless passing of members and 40 state senators dates back to it leaves elected officials little space to make the buck is strategic planning.Califomia is a constitutional convention in 1879,when decisions. Spending on many health and a triumph of micromanagement, riddled the state was a small agricultural commu- welfare programmes,the next-biggest part with little rules designed for individual situ- niry of 660,000 people.The population has of the general fund,is laid down by the fed- ationL This "ruling by anecdote"has cm- since increased to 32m,swelling the num- eral government.Add in the state's special- ated plenty of rad tape,from complicated ber of registered voters in the average state- fund revenues (many of which are ear- environmental laws to absurd ones saying senate district to about 350,000. marked for specific uses)and bond funds that a librarian must be either male or fe- With electorates of such site,politicians (ditto),and what is left for Mr Wilson and male.In the meantime the state has nostra- have had to rely on television.A campaign the legislature to squabble over is some- tegic plan to face its two biggest economic for a sat in the state legislature can cost as where—it depends which number-cruncher challenges:the decline of the defence busi- much as Sim. This gives undue power to you talk to--between lo%and 1A%of the to- ness,and changing demography. chequebook-wielding lobby groups like the al budget. "What chief executive would California Teachers Association and the want to run a$50 billion company where he Too marry people,too little money Califomis Trial Lawyers Association. has only 20%of the power and 100%of the California's 32m population is already 'in 1966 the California Constitutional responsibility+"asks one politician. thrice that of 1950.By 2000 it is expected to Revision Comission professional ised both Proposition u also destroyed the inde- reach 36m.By some counts,the number of the state legislature and its staff.its master- pendence of local g ovemment,bydepleting taxpayers per tax-recipient has declined mind,Jesse Unruh,speaker of the state as- its revenue base.Immediately after Proposi- from eight to three.Before Mr Wilson,mast sembly.later said he had wanted a third re- tion t3, the sate government, then flush governors were judged on the way they allo- form: public financing of elections. with cash,began"the great bail-out"ofloal e:ated the budget surpluses that the thriving Countless attempts have been made since government.Before 1978,roughly 75%of the economy left in its wake.Now the state's de- then to rid the state of money politics;the money for schools came from local authori- mand for schools is growing faster than its latest,accepted on a ballot but disputed in ties;today 75%comes from the state.Now, economy;so too is its demand for prisons, the courts,is term limits. with its coffers empty,and Mr Wilson un- water,rail transport and hospital beds.By However.the chiefweapon of fnutrated willing to raise taxa, the government in the end of the decade,California will have. voters has been the proposition movement. Sacramento has begun the great pullout: to produce 4So,o00 extra jobs a year just to Ballot initiatives, which directly change subsidies have been slashed and respon- kap unemployment at bay. Californian law,were set up in 1911 by a st'bilities handed back California now gets leas money from great Progressive governor,Hiram Johnson, For counties,which rely almost entirely Washington than it gives.As in many other largely as a way to restrict the power of the on sate funds,this has been a disaster.Cit- states, its govemment bears the brunt of Southern Pacific Railroad.In 1976,Propow- ies are cleverer at raising revenue..but have America's social problems pike the one tion ls,which sought tohalve local property todosoinincreasinglyweirdways.Accord- baby in eight,according to the governor's taxa and then kap them low,was put for- ing to one recent study,IS%of the money statistics, that is born with drugs in its ward.it had no great popular support,until directly raised by the eery of Los Angela bloodstreams In these wretched circum. voters discovered that the state budget was came from its shrunken property-tax rove- stances,gloomsters depict even the state's in -obscene" surplus. Then the initiative nues;another 7%from a sales ax;the other diversity as a cost,lamenting that it attr4ets went through handsomely. 78% came from "nickel and dime" taxesroughly one in three of all America's immi- Proposition 13 was well numbered. It such as fees added to water bills. grants,and that only a third of the 600,000 saysged representative government in two Fighting over scarce resources has led to babies born thtmevery year ate white. ways.The first was that it made budgeting what the state treasurer, Kathleen Brown. Much of this pessimism has a racist by proposition respectable. "Nobody fore- dubs"intergovernmental cannibalism.'At tinge.Complaints about the cost of immi- saw that initiative government would m its best,this means that local governments gration seem strange in a state built on the 22 T„a acowoau.T PSOaWA41V13TE 29" APR — 1 - 9Z THU 15 : 49 0 P' era GOVERNMENT IN CALIFORNIA ingenuity of its new arrivals. In the long when hundreds of tom-up charge cards ar- the heart of America's constitution. Mr tem,few economists would willingly swap rived in the mail. Keene replies that the current system offers California's technology-rich economy for. A more subtleway to approach the same more checks and balances on executive ac- say,Michigan'soreven Britain's.When that problem might be a convention charged tion than the founding fathers ever economy comes roaring back, might not with reforming local government.it might dreamed of—from the federal government, California's political institutions look a lit- allocate specific tasks to specific layers of from local government,from the judiciary, tle stronger--particularly if both the gover- government. Thus water, welfare and from the stare's smorgasbord of special dis- nor and the majority in the legislature came higher education might be controlled by the tricts and from the initiative process. from the same party?Is Califumia's institu- state; responsibility for schools might be tional paralysis merely temporary? pushed down to the cities(with the state of. Ltssons from the Wert Supporters of the Democratic Parry, fering a safety net);regional governmental Talk to any state politician about Califor- keen to remove Mr Wilson,argue that po- authorities could take charge of things like nia's problems,and he will insist on two litical paralysis can be ended as quickly in transport,planning and air quality,all of things: first, that the state will somehow Sacramento as (supposedly) it is being which affect more than one city, muddle its way through;second that all the ended in Washington.Other optimists sug- Even such a vague blueprint has its problems it is facing today are ones that the gest that demographic rules of supply and problems. For instance,it raises the(good rest of America will face tomorrow.Many demand art already at work:Califomis is but politically unpopular) question of other states have caught California's initia- now driving away the people whom it can- whether modern California needs county tive fetish;many more are grappling with not afford to educate,imprison and nurse. government. Before the recession, those governmental paralysis and declining bud- Last year the state's birth rate dipped. who worried about uncontrolled growth gets.The state remains the national econo- Anecdotal evidence suggests the oppo• pushed plans to develop superstnictures of my's powerhouse—,as well as President site: that the people leaving the state are regional government in southem Califor- Clinton's political linchpin. mostly well-off,white taxpayers.Moreover, nia and the San Francisco bay area.'their Indeed,Mr Clinton should be almost as even if the optimists'theory is trate,it still arguments have little appeal now. concerned about California's predicament seems a thin argument against reform.As The most radical form of regionalism, as Mr Wilson is. The new president will Barry Keene,the former m*rity leader in which has considerable support north of have to push his programmes down con- the state senate,argues,"What does it mean San Francisco,is a proposal to split the state torted institutional pipelines similar to to say that we have a government that works into three parts.Counties in northern Cali- Califomies.Even at this early stage,has&d- well when times are good,but is paralysed fomia resent having to comply with state- ministration's faith in electronic town halls when we most need it?"A strong economy wide "mandated programmes" (laying looks naive.As Mr Cain at Berkeley puts it, will not straighten out Califamia's tangled down,for instance,how they bum theirntb- politicians must balance "the attractive al- system ofgovernment. bish)which are obviously designed for the lesion that technology has made direct de- more crowded areas to the south.If nothing mocracy possible with the reality that vot- Reforrn,but which? else,a local legislature in Las Angeles might ers'interest is so bw." The real argument is probably not so much encourage southern California's media to However,the real lesson from Califbr- over whether reform will corse as when and take serious note of state politics,a journal- nia may be wider still. Nearly every state how much.An early target is the state's inef. istic badcwater today. government, W California's, mimics the ficient bureaucracy.Mr Wilson last month Some people propose reducing the legis- federal system that the newborn United belatedly proposed integrating 40 or so ex- lature's present two chambers to one.That States set up two centuries ago.Yet the popu- isting (and contradictory)state plans--on would speed up the legislative process and lation of modern Califomis alone is ten housebuilding,congestion and air quality, could--depending on its size—mean fewer times bigger than the entire republic held for instance—that are hanging around Sac- voters per member.Others suggest lowering then;and its state government is responsi- ramento.Other Republicans want to start the majority required for budget votes from ble for a plethora of services unimagined in privatising many government services,in- 66%to 50%.Mr Wilson last year sponsored the 18th century. eluding Los Angeles airport and the Depart- an initiative that would have increased his More than one national president has meat of Motor vehicles. own powerover the budgetand lessened the argued that America's states can be labora- institutional reform requires the voters' legislature's;it was defeated,but,even if it toric for experiment in government.They approval.Even fairly simple proposals—for had got through,it would not have affected can,and a few have;California not least, example, changing from 66% to 50% the the 80.90%of the budget which is outside with its ballot initiatives.That is an unper- backin from voters that a school district the control of either. suasive example:these initiatives have con- needs �a bond issue—have to wait their Most controversially, a few people in tn'buted handsomely to the muddle of Cali- tum on the ballot.Tinkering with the initia- Sacramento believe that California should fbmian government. But by now the tive process(eg,by increasing the number of look at parliamentary government,where muddle is so great, the lines of govern- signaturts needed to put an initiative on the the legislature, rather than the electorate; mental command so stretched, the state's ballot) would probably require another would choose the governor.That would go voters so exhausted and alienated that some constitutional convention orcommission— against the separation of powers that is at sort of deeper reform looks inevitable. and the 1966 commission was seven years in the making. � Accepted wisdom in Sacramento is that . to touch the initiative process would out- rage voters.Proposition 13 has rooted itself in California's class system by keeping taxes ✓ `""` on those who have owned property sins before 1478 artificially low.In 1491 Macy's t� , triad to challenge:the:result as inequitable. f �,,,� ' because a new store that it had opened had �'' x to pay taxes several times higher than its - neighbours'. The firm changed its mind raw eco"0141911 It &WAST 13101"" T H U 15 : 50 0 P . 09 z Fiscal LI ummit II New Visions for Government Sponsored by the Contra Costa Mayors Conference Contra Costa Board of Supervisors Contra Costa County School Boards Association Contra Costa Special Districts Association East Bay Division, League of California Cities Fiscal Unity Summit II Conference Committee Chair Dick Heggie, Orinda City Council Gwen Regalia, Walnut Creek City Council Donald A. Blubaugh, Walnut Creek City Manager Cassandra Forth, President, School Board Assn. Tom Torlakson, CC County Board of Supervisors Chuck Beesley, Chair, CC Special District Assn. Muriel Smallheiser, Walnut Creek School Board Sue Rainey, CC Central Sanitary District Board Brenda K. Barrie, Conference Coordinator