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HomeMy WebLinkAboutMINUTES - 04161996 - C46 TO:* BOARD OF SUPERVISORS sE L Contra FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR or� ''s Costa _ County y,a +0 40 - DATE: April 10, 1996 rT'9 C'OUK� SUBJECT: SUPPORT FOR AB 2797 (AGUTAR, et al) RE GROWTH IN THE PROPERTY TAX TRANSFERRED TO THE STATE SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position in SUPPORT of AB 2797 by Assemblyman Fred Aguiar and 15 co-authors, which would transfer back to the original taxing jurisdictions the growth in that portion of the property tax which was transferred to the State through the Educational Revenue Augmentation Fund (ERAF) during the 1992-93, 1993-94 and subsequent fiscal years. BACKGROUND: As the Board of Supervisors is well aware, beginning in the 1992-93 fiscal year, the State transferred a substantial portion of the property tax from the county, cities and special districts to the State through a mechanism referred to as the Educational Revenue Augmentation Fund (ERAF). The value of this amount continues to grow each year as the property tax grows. A number of efforts are underway in the current Session of the Legislature to reverse, in full or in part, this property tax transfer to the State. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE X APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON Apil 16, Ma APPROVED AS RECOMMENDED X 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. ATTESTED April 16, 1996 Conta +t: PHIL BATCHELOR,CLERK OF THE BOARD OF CC: Jee Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR BY ,DEPUTY Assemblyman Aguiar has introduced AB 2797 which would provide, beginning with the 1996-97 fiscal year, that the growth in the value of this transfer to the ERAF would not go to the State but instead would be retained by the original taxing jurisdiction. This would be accomplished by calculating the value of the property tax transfer to the ERAF in the 1994-95 fiscal year and subtracting from that amount the value of the property tax transfers to the ERAF for the 1992-93 and 1993-94 fiscal years. The difference, the growth in the property tax transferred to the ERAF, would instead be left with the appropriate county, city or special district. While this is a fairly modest approach to addressing the theft of property tax revenue from local governments, it is a beginning and one that hopefully would have the support of the Administration. It is, therefore, recommended that the Board of Supervisors adopt a support position with regard to AB 2797. We have been advised that the Building Industry Association is in support of AB 2797 and urges the Board of Supervisors to support the bill. cc: County Administrator Auditor-Controller Tony Enea, Senior Deputy County Administrator Assemblyman Fred Aguiar Room 4162 State Capitol Sacramento, CA 95814 Les Spahnn Heim, Noack, Kelly & Spahnn 1121 L Street, Suite 100 Sacramento, CA 95814 -2- i CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION ASSEMBLY BILL No. 2797 Introduced by Assembly Members Aguiar, Bowler, Burton, Bustamante, Cortese, Hauser, House, Machado, Mazzoni, Miller, Richter, and Woods (Coauthors: Senators Costa, Leslie, Marks, and Thompson) February 22, 1996 An act to amend Sections 97.2, 97.3, and 97.38 of, and to add Section 97.52 to, the Revenue and Taxation Code, relating to { taxation, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST }. AB 2797, as introduced, Aguiar. Property tax revenue allocations. Existing law generally requires the county auditor, in each fiscal year, to allocate property tax revenue to each local jurisdiction in an amount equal to the sum of that amount of revenue allocated to that jurisdiction in the prior fiscal year, and that jurisdiction's portion of the annual tax increment, as defined. Existing property tax law modifies._ this general <; provision by requiring that, for purposes.'of determining ._ property tax revenue allocations in each county for the 1992-93 and 1993-94 fiscal years, 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, for the 1992-93 and 1993-94 fiscal years, and each subsequent fiscal year, that the revenues not allocated to the county, cities, and special districts as a 99 AB 2797 — 2 — result of these reductions be transferred to the Educational Revenue Augmentation Fund (ERAF) in that county for allocation to school districts, community college districts, and the county office of education, and then to the county superintendent of schools for the funding of special education programs. It also requires the auditor for the County of Marin, commencing with the 1993-94 fiscal year, and the auditor for the County of Mono, commencing with the 1994-95 fiscal year, to apply ERAF moneys that, as a result of max'imum allocation limits, may not be allocated to these school entities to proportionately decrease the reduction and transfer amounts otherwise determined for the county, cities, and special districts for the 1993-94 fiscal year. This bill would limit the application of the requirement that ERAF money be allocated to' county superintendents of schools for the funding of special education programs to the 1995-96 fiscal year. This bill would also expand the reduction and transfer decrease provision currently applicable only to the County of Marin and: the County o,f,,Mono to apply to all counties in the state commencing with the 1996-97 fiscal year. By imposing new duties upon county auditors with respect to the annual allocation of ad valorem property tax revenues, this bill would impose a state-mandated local program. This bill would also modify the general reduction and transfer provisions . by requiringeach county auditor, commencing with property tax revenue allocations for the 1996-97 fiscal year, to allocate the "shift growth amount," as defined, of the county, and each city and special district, to that local agency, rather than to. the county's ERAF. Itmould -i the further require that . any reductions, . resulting from implementation of this bill, in the amount of revenues allocated to a county's ERAF,be applied exclusively to reduce the amount of revenues allocated from that fund to, school districts and county offices of education. By imposing new duties upon county auditors in the annual allocation of ad 4 valorem property tax revenues, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated 99 - 3 — AB 2797 ional � ' by the state. Statutory provisions establish procedures for �- for making that reimbursement. and This bill would provide that no reimbursement is required aunty by this act for a specified reason. ation This bill would declare that it is to take effect immediately sarin, low _ as an urgency statute. )r for Vote: 2/3. Appropriation: no. Fiscal committee: yes. fiscal State-mandated local program: yes. num tities The people of the State of California do enact as follows. nsfer and 1 SECTION 1. Section 97.2 of the Revenue and 2 Taxation Code is amended to read: : that 3 97.2. Notwithstanding any other provision of this is of 4 chapter, the computations and allocations made by each the 5 county pursuant to Section 96.1 or its predecessor section tion 6 shall be modified for the 1992-93 fiscal year pursuant to ly to 7 subdivisions (a) to (d), inclusive, and for the 1997-98 and .o all 8 1998-99 fiscal years pursuant to subdivision (e) , as follows: year. 9 (a) (1) Except as provided in paragraph (2) , the !ct to 10 amount of property tax revenue deemed allocated in the lues, 11 prior fiscal year to each county shall be reduced by the 12 dollar amounts indicated as follows,multiplied by .953649: and i 13 litor, 14 Property ' the 15 Tax Reduction as 16 per County. :t, to 17 Alameda . . . . . . . . . . . . . ... . . . . . . . . . $ 27,323,576 ould 18 Alpine . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . 5,169 the 19 Amador . . . . . . ... . . . . . . . . . . . ... . . . . . . . . . . . . . 286,131 nues 20 . Butte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . 846,452 3uce .21 Calaveras . . . . . . . . . . .. . . . . ... . . . . . . . . . . . . . . . 507,526 'pool 22 Colusa . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,438 new 23 Contra Costa . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,504,318 ,f ad 24 ' Del Norte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,523 -se a 25 El Dorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1544 590 26 . Fiesno .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... . 5,387,570 )urse 27 Glenn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378,055 ated 28 Humboldt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,084,968 Im erial 29 p 998,222 99 99 AB 2797 — 4 — I - 4 -- 1 Ingo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366,402 2 Kern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,907,282 3 Kings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,303,774 4 Lake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 998,222 5 Lassen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,045 6 Los Angeles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244,178,806 7 Madera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 809,194 8 Marin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,902,258 9 Mariposa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,136 10 Mendocino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,004,112 11 Merced . . . . . . . . . . . . . . . . . :. . . . . . . . . . . . . . . . 2,445,709 12 M¢doc . . . . . . . . . . . . . . : .. . . . . . . . . . . . 134,650 13 Mono . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,793 14 , Monterey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,519,507 15 Napa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,362,036 16 Nevada . . . . . . . 762,585 17 Orange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,900,654 18 Placer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,991,265 19 Plumas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,076 20 Riverside . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,575,353 t S� 21 Sacramento . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,323,634 22 San Benito . . . . . . . . . . . . . . . . . :. . . . . . . . . . . . . 198,090 23 San Bernardino . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,467,099 24 San Diego . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,6871776 25 San Francisco . . . . . . : . . . . . . . . . . . . . . . . . . . . . 53,266,991 ' 26 San Joaquin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,574,869 27 San Luis Obispo . . . . , . . . . . . . . . . . . . . . . . . : 2,547,990 28 San Mateo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,979,302 29 Santa Barbara . . . . . . . . . . 4,411,812 ::. 30 Santa Clara . . . . . . . . . . . 20,103,706 31 Santa Cruz . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,416,413 32 Shasta . . . . . . . . . . . . . . . . . . . . . . 1,096,468 33 Sierra . . . . . . . . . . . :. . . . . . . . 97,103 4 , 34 Siskiyou . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467,390 35 Solano . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,378,048 36 Sonoma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,455,911 37 Stanislaus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,242,129 38 Sutter . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 831,204 39 Tehama . . . . . . . . . . . . . . . . . . . . 450,559 99 - 5 - AB 2797 i 66,402 1 Trinity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,399 07,282 2 Tulare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,228,525 03,774 3 Tuolumne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740,574 98,222 4 Ventura . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,412,547 93,045 5 Yolo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,860,499 78,806 _ 6 Yuba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842,857 09,194 7 02,258 8 (2) Notwithstanding paragraph (1)., the amount of the 40,136 9 reduction specified in that paragraph for any county or 04,112 10 city and county that has been materially and substantially 45,709 . 11 impacted as a result of a federally declared disaster, as 34,650 12 evidenced by at least 20 percent of the cities, or cities and 19,793 13 unincorporated areas of the county representing 20 19,507 14 percent of the population within the county suffering 62,036 15 substantial damage, as certified by the Director of the 62,585 16 Office of Emergency Services, occurring between X0,654 17 October 1, 1989, and-the effective date of this section,shall 31,265 18 be reduced by that portion of five million dollars 71,076 19 ($5,000,000) determined for that county or city and 75,353 . 0 OF . 20 county pursuant to subparagraph (B) of paragraph (3) . X3,634 21 (3) On or before October 1, 1992, the Director of )8,090 22 Finance shall do all of the following: 37,099 23 (A) Determine the population of each county and city 37,776 24 and county in which a federally declared disaster has 16,991 0 25 occurred between October 1, 1989, and the effective date 74,869 26 of this section. 17,990 27 (B) Determine for each county and city and county as 79,302 28 described in subparagraph (A) its share of five million 11,812 29 dollars ($5,000,000) on the basis of that county's )3,706 30 population relative to the total population of all counties 16,413 31 described in subparagraph (A) . )6,468 32 (C) Notify each auditor of each county and city and )7,1030 6 33 county of . the amounts determined pursuant to 17,390 34 subparagraph (B) . '8,048 35 (b) (1) Except as provided in paragraph (2) , the 3,911 36 amount of property tax revenue deemed allocated in the 12,129 37 prior fiscal year to each city, except for a newly 31,204 38 incorporated city that did not receive property tax 30,559 39 revenues in the 1991-92 fiscal year, shall be reduced by 9 40 percent. In making the above computation with respect 99 99 AB 2797 — 6 — I 6 _1 to cities in Alameda County, the computation for a city 2 described in paragraph (6) of subdivision (a) of Section 3 100.7, as added by Section 73.5 of Chapter 323 of the 4 Statutes of 1983, shall be adjusted so that the amount 5 multiplied by 9 percent is reduced by the amount 6 determined for that city for "museums" pursuant to 7 paragraph (2) of subdivision (h) of Section 95. 8 (2) Notwithstanding paragraph (1) , the amount of the 9 reduction determined pursuant to that paragraph for any . 10 city that has been materially and substantially impacted 11 as a result of a federally declared disaster, as certified by 12 the Director of - the Office of Emergency Services, 13 occurring between October 1, 1989, and the effective 14 date of this section, shall be reduced by that portion of 15 fifteen million dollars ($15,000,000) determined for that 16 city pursuant to subparagraph (B) of paragraph (3) . 17 (3) On or before October 1, 1992, the Director of 18 Finance shall do all of the following: 19 (A) Determine the population of each`city in which a 20 federally declared disaster has occurred between 21 October 1, 1989, and the effective date of this section. 22 (B) Determine for each city as . described in 23 subparagraph (A) its share of fifteen million dollars 24 . ($15,000,000) on the basis of that city's population relative 25 to the total population of all cities described in 26 subparagraph (A) . 27 (C) Notify each auditor of each county and city and 28 county of the amounts determined pursuant to ` n 29 subparagraph (B) . 30 4 In the 1992-93 fiscal O year and each fiscal year 31 thereafter, the auditor shall adjust the computations 32 required pursuant to Article 4 (commencing with Section 33 98) so that those computations ' do not result in the 34 restoration of any reduction required pursuant to this 35 section. 36 (c) (1) Subject to paragraph (2), the amount of 37 property tax revenue, other than those revenues that are 38 pledged to debt service, deemed allocated in the prior 39 fiscal year to a special district, other than a multicounty 40 district, a local hospital district, or a district governed by 99 - 7 — AB 2797 a city 1 a city council or whose governing board has the same motion 2 membership as a city council, shall be reduced by 35 )f the 3 percent. For purposes of this subdivision, "revenues that nount 4 are pledged to debt service" include only those amounts nount 5 required to pay debt service costs in the 1991-92 fiscal int to 6 year on debt instruments issued by a special district for 7 the acquisition of capital assets.' of the 8 (2) No reduction pursuant to paragraph (1) for any )r any 9 special district, other than a countywide water agency acted 10 that does not sell water at retail, shall exceed an amount ed by 11 equal to 10 percent of that district's total annual revenues, vices, 12 from whatever source, as shown in the 1989-90 edition of active 13 the State Controller's Report on Financial Transactions :on of 14 Concerning Special Districts (not including any annual r that 15 revenues from fiscal years following the 1989-90 -fiscal 16 year) . With respect- to any special district, as .defined ar of 17 pursuant to subdivision (in) of Section 95, that is allocated 18 property tax revenue pursuant to this chapter but does rich a 19 not appear in the State Controller's Report on Financial ween 0 20 Transactions Concerning Special Districts, the auditor on. 21 shall determine the total annual revenues for that special d in 22 district from the information in'the 1989-90 edition of the ollars 23 State Controller's Report on Financial Transactions dative 24 Concerning Counties. With respect to a special district d in 25 that did not exist in the 1989-90 fiscal year, the auditor .,26 may use information from the first full fiscal year, as and 27 appropriate, to determine the total annual revenues for Lt to 28 that special district. No reduction pursuant to paragraph 29 (1) for any countywide water agency that doesnotsell year 30, water at retail shall exceed an amount equal to.10 percent itions �311. of that portion of that agency's general fund derived from 32 ction , property'tax revenues. . i the . .33 '(3) The auditor in each county shall, on or before this ' 34 January 15, 1993, and on or before Januar 30 of each year 35 thereafter, submit information mation to the Controller it of 36 concerning the amount of the property tax revenue it are 37 reduction to,each special district within that county as a prior 38 ,result of paragraphs (1) and (2) . The Controller shall )unty Ak 39' certify that the calculation of the property tax -revenue �d by 40 reduction to each special district within that county is 99 99 AB 2797 — 8 — I accurate and correct, and submit this information to the 2 Director of Finance. 3 (A) The Director of Finance shall determine whether 4 the total of the amounts of the property tax revenue 5 reductions to special districts, as certified by the 6 Controller, is equal to the amount that would be required 7 to be allocated to school districts and community college 8 districts as a result of a three hundred seventy-five million 9 dollar ($375,000,000) shift of property tax revenues from 10 special districts for the 1992-93 fiscal year. If,for any year, 11 the total of the amount of the property tax revenue 12 reductions to special districts is les's than the amount as 13 described in the preceding sentence, the amount of 14 property tax revenue, other than those revenues that are 15 pledged to debt service, deemed allocated in the prior 16 fiscal year to a special district, other than a multicounty 17 district, a local hospital district, or a district governed by 18 a city council or whose governing board has the same .19 membership as a city council, shall, subject to 20 subparagraph (B) be ,reduced by an amount up to 5 21 percent of the amount subject to reduction for that 22 ' district pursuant to paragraphs (1) and (2) . 23 (B) No reduction pursuant to subparagraph (A) , in 24 conjunction with a r'eduction pursuant to paragraphs (1) .25 and (2), for any special district, other than a countywide 26 water agency that- does not sell water at retail, shall 27 exceed an amount equal to 10 percent of that district's 28 total annual revenues, from whatever source, as 'shown in 29 the most recent State Controller's Report on Financial 30 Transactions Concerning Special Districts..No reduction 31 pursuant to subparagraph (A) in conjunction with a 32 reduction pursuant to, paragraphs (1) and, (2), for any 33 countywide water agency that does not sell,water at retail 34 shall exceed an amount equal to 10 percent of that portion 35 of that agency's general fund derived from property tax 36 revenues, 37 (C) In no event shall the amount of the property tax 38 revenue loss to a special district derived pursuant to 39 . subparagraphs (A) and (B) exceed 40 percent of that 99 • # — 9 — AB 2797 D the 1 districts property tax revenues or 10 percent of that 2 district's total revenues, from whatever source. ether 3 (4) For the purpose of determining the total annual nue 4 revenues of a special.district that provides fire protection the 5 or fire suppression services, all of the following shall be tired 6 excluded from the determination of total annual llege •! 7 revenues: :llion 8 (A) If the district had less than two million dollars from 9 ($2,000,000) in total annual revenues in the 1991-92 fiscal year, 10 year, .the revenue generated by a fire suppression ,-nue 11 assessment levied pursuant to Article 3.6 (commencing nt as 12 with Section 50078) of Chapter 1 of Part 1 of Division 1 of it of 13 Title 5 of the Government Code.- t are 14 (B) Any appropriation for fire protection received by Drior 15 a district pursuant to Section 25642 of the Government unty 16 Code. d by 17 (C) The revenue received by a district as a result of :ame 18 contracts entered into pursuant to Section 4133 of the to 19 Public Resources Code. to 5 20 (5) For the purpose of determining the total annual 21 revenues of a resource conservation servation district, all of the 22 following shall be excluded from the determination of in 23 total annual revenues: (1) 24 (A) Any revenues received by that district from the wide (. 25 state for financing the acquisition of land, or the shall 26 construction or improvement of state projects, and for -ict's 27 which that. district serves as the fiscal agent in in in 28 administering those state funds pursuant to an agreement zcial 29 entered into between that district and a state agency. :tion 30 (B) Any amount received by that district as a private .th a 31 gift or ,donation. any 32 (C) Any amount received as a county grant or contract etail 33 as. supplemental to, or independent of, that- district's -tion 34 property tax share. tax '35 (D) Any amount received by that district as a federal 36 or state grant. tax 37 (d) (1) The amount of property tax revenues not :t to 38 allocated to the county, cities within the county, and that 39 special districts as a result of the reductions calculated ( p 40 pursuant.to subdivisions (a), (b), and (c) shall instead be 99 99 i AB 2797 -- 10 — I deposited in the Educational Revenue Augmentation 2 Fund to be established in each county. The amount of 3 revenue in the Educational Revenue Augmentation 4 Fund, derived from whatever source; shall be allocated 5 pursuant to paragraphs (2) and (3) to school districts and 6 county offices of education, in total, and to community 7 college districts, in total, in the same proportion that 8 property tax revenues were distributed to school districts 9 and county offices of education, in total, and community 10 college districts, in total, during the 1991--92 fiscal year. 11 (2) The auditor shall, based on information provided 12 by the county superintendent of schools pursuant to this 13 paragraph, allocate the proportion of the Educational 14 Revenue Augmentation Fund to those school districts 15 and county offices of education within the county that are 16 not excess tax school entities,as defined in subdivision (n) 17 of Section 95. The county superintendent of schools shall 18 determine the amount to be allocated to each school 19 district and county office of education in inverse 20 proportion to the amounts of property tax revenue per 21 average daily attendance in each school district and 22 county office of education. In no Ievent shall any 23 additional money be allocated from the fund.to a school 24 district or county office of education upon ,that school i 25 district or county office of education becoming an excess 26 tax school entity. 27 (3) The auditor shall, based_ on information provided 28 by the Chancellor of the California Community Colleges 29. pursuant to this paragraph, allocate the proportion of the 30 Educational Revenue Augmentation Fund to those 31 community college districts within the county that ,are .32 not excess tax school entities,as defined in subdivision- (n) 33 of Section 95. The chancellor shall determine the amount 34 to be allocated to each community college district in 35 inverse proportion to the amounts of property tax ` 36 revenue per funded full-time equivalent student in each 37 community college district. In no event shall any i 38 additional money be allocated from the fund to a Y 39 community college district upon that district becoming 40 an excess tax school entity. 99 AB 2797 tation 1 (4) (A) If, after making the allocation required .int of 2 pursuant to paragraph (2) , the auditor determines that tation 3 there are still additional funds to be allocated, the auditor cated 4 shall allocate those excess funds pursuant to paragraph is and 5 (3) . If, after making the allocation pursuant to paragraph unity 6 (3) , the auditor determines that there are still additional i that 7 funds to be allocated, the auditor shall allocate those ;tricts 8 excess funds pursuant to paragraph (2) . unity 9 (B) For the 1995-96 fiscal year a*d eaeh fiseal yeft'f rear. 10 they-eeffer only, if, after making the allocations pursuant vided 11 to paragraphs. (2) and (3) and subparagraph (A) , the o this 12 auditor determines that there are still additional funds to tional 13 be allocated, the auditor shall allocate those excess funds ;tricts 14, to the county superintendent of schools. Funds allocated at are 15 pursuant to this subparagraph shall be counted as In (n) 16 property tax revenues, for special education programs in ; shall 17 augmentation of the amount calculated pursuant to chool 18 Section 2572 of the Education Code, to the extent that verse 19 those property tax revenues offset state aid for county e per20 (;offices of education and school districts within the county and ( ` 21 pursuant to Section 56712 of the Education Code. �the any 22 5�fiseal�� 3, This subparagraph shall have chool 23 no application to the County ,of Mono and the amount chool 24 allocated pursuant to this subparagraph in the County of ,xcess 25 Marin shall not exceed five million dollars ($5,000,000) . 26 (5) For purposes of allocations made pursuant to ✓ided 27 Section 96.1 or its predecessor section for the 1993-94 leges 28 fiscal year, the 'amounts allocated from the Educational )f the 29 Revenue Augmentation Fund pursuant to this those 30 subdivision, other than amounts deposited in the Lt are 31 Educational Revenue Augmentation Fund pursuant to n (n) . 32 Section 33681 of the Health and Safety Code, shall be count33 deemed property tax revenue allocated to the :ct in • ( { 34 Educational Revenue Augmentation Fund in the prior tax 35 fiscal year. each 36 (e) (1) For the.1997-98 fiscal year: any 37 (A) The amount of property tax revenue deemed to a 38 allocated in the prior fiscal year to any city subject to the ming 39 reduction specified in paragraph (2) of subdivision (b) (( S 40 shall be reduced by an amount that is equal to the 99 99 AB 2797 12 — 1 difference between the amount determined for the city ; 2 pursuant to paragraph (1) of subdivision (b) and the 3 amount of the reduction determined for the city pursuant 4 to paragraph (2) of subdivision (b) . i 5 (B) The amount of property tax revenue deemed 6 allocated in the prior fiscal year to any county or city and 7 county subject to the reduction specified in paragraph 8 (2) of subdivision (a) shall be reduced by an amount that 9 is equal to the difference between the amount specified 10, for the county or city and county pursuant to paragraph 11 (1) of subdivision (a) and the amount of the reduction 12 determined for the county or city and county pursuant to 13 paragraph (2) of subdivision (a) . 14 (2) The amount of property tax revenues not allocated 15 to a city or city and county as a result of this subdivision 16 shall be deposited in the Educational Revenue 17 Augmentation Fund described in subparagraph (A) of 18 paragraph (1) of subdivision (d) . 19 (3) For purposes of allocations made pursuant to 20 Section 96.1 for the 1998-99 fiscal year, ,the amounts 21 allocated from the Educational Revenue Augmentation 22 Fund pursuant to this subdivision shall be deemed 23 property tax revenues allocated to the Educational 24 Revenue Augmentation Fund in the prior fiscal year. 25 (f) it is the intent of the Legislature in enacting this 26 section that this section supersede and be operative in 27 place of Section 97.03 of the Revenue and Taxation Code, ` 28 as added by Senate Bill 617 of the 1991-92 Regular Session. 29 � SEC. 2. Section 97.3 of the Revenue and Taxation 30 Code is amended to read: ` f i 31 97.3. Notwithstanding any other , provision of this f 32 chapter, the computations and allocations made by each 33 county pursuant to Section 96.1,or its predecessor section, 34 as modified by Section 97.2 or its predecessor section for f 35 the 1992-93 fiscal.year, shall be modified for the 1993--94 r 36 fiscal year pursuant to subdivisions (a) to (c), inclusive, ` 37 as follows: 3 38 (a) The amount ,of property tax revenue deemed 3 39 allocated in the prior fiscal year to each county and city - 3 40 and county shall be reduced by an amount to be E€ 99 - 13 — AB 2797 ie city I determined by the Director of Finance in accordance id the 2 with the following: rsuant 3 (1) The total amount of the property tax reductions for 4 counties and cities and counties determined pursuant to -emed 5 this section shall be one billionnine hundred ninety-eight ty and 6 million dollars ($1,998,000,000) .in the 1993-94 fiscal year. .graph 7- (2) The Director of Finance shall determine the it that 8 amount of the reduction for each county or city and !cified 9 county as follows: graph 10 (A) The proportionate share of the property tax .iction 11 ', revenue reduction for each county or city and county that ant to 12 would have been imposed on all counties under the 13 proposal specified in the "May Revision of the 1993-94 icated 14 Governor's Budget" shall be determined by reference to vision 15 the document entitled "Estimated County Property Tax venue 16 Transfers Under Governor's May Revision Proposal," A) of 17 published by the Legislative Analyst's Office on June 1, 18 1993. nt , to 19 (B) Each county's or city and county's proportionate ,ounts 20 share of total taxable sales in all counties in the 1991-92 Cation 21 fiscal year shall be determined. erred 22 (C) An amount for each county and city and county tional 23 shall be determined by applying its proportionate share ar. 24 determined pursuant to subparagraph (A) to the one g this. 25 billion nine hundred ninety-eight million dollar ve in 26 ($1,998,000,000) statewide reduction for counties and i code, 27 cities and counties. :ssion. 28 (D) An amount for each county and city and county Cation 29 shall be determined by applying its proportionate share 30 determined pursuant to subparagraph (B). to the one F this 31 billion nine hundred .ninety-eight million do-Ilak each 32 ($1,998,000,000) statewide reduction for counties and ction, 33 cities and counties. )n for 34 (E). The Director of Finance shall add the amounts 93-94 35 determined pursuant to sub h paragrap, s (C) and (D) for -Isive, 36 each county and city and county, and divide the resulting 37 figure by two. The amount'so determined for each county y _=,med 38 and city and count shall be divided by a factor of 1.038. d city39 The resulting figure shall be the.amount of property tax -o be 0 99 99 ,TW AB 2797 — 14 - 1 14 -1 revenue to be subtracted from the amount of property tax 2 revenue deemed allocated in the prior fiscal year. 3 (3) The Director of Finance shall, by July 15, 1993, 4 report to the Joint Legislative Budget Committee its 5 determination of the amounts determined pursuant to 6 paragraph (2) . 7 (4) On or before August 15, 1993, the Director of t . 8 Finance shall notify the auditor of each county and city 9 and county of the amount of property tax revenue 10 reduction determined for each county and city and t 1 11 county. 1 12 (5) Notwithstanding any other , provision of this ! 1, 13 subdivision, the amount of the reduction specified in L 14 paragraph (2) for any county or city and county that has 1- 15 first implemented, for the 1993-94 fiscal year, the l� 16 alternative procedure for the distribution of property tax P 17 levies authorized by Chapter 2 (commencing with 1' 18 Section 4701) of Part 8 shall be reduced, for the 1993-94 P 19 fiscal year only, in the amount of any increased revenue 1( 20 allocated to each qualifying school entity that would not 2( 21 have been allocated for the 1993-94 fiscal year but for the 21 22 implementation of that alternative -procedure. For 2r 23 purposes of this paragraph, "qualifying school entity" 22 24 means any school district, county office of education, or 24 25 community college district that is not an excess tax school 25 26 entity as defined in Section 95.1. Notwithstanding any 26 27 other provision of this paragraph, the amount of any 27 28 reduction calculated pursuant to this paragraph for any 28 29 county or city and county shall not exceed the reduction. 29 30 calculated for that county or city and county pursuant to 30 31 paragraph (2). 31 32 (b) The amount of property tax revenue deemed 32 .33 allocated in the prior fiscal year to each city shall be 33 34 reduced by an amount to be determined by the Director 34 35 of Finance in accordance with the following: 35 36 (1) The total amount of the property tax reductions 36 37 determined for cities pursuant to this section shall be two 37 38 hundred eighty-eight million dollars ($288,000,00. 0) in the 38 39 1993--94 fiscal year. _ 39 40 99 - 15 — AB 2797 y tax t 1 (2) The Director of Finance shall determine the 2 amount of reduction for each city as follows: 1993, 3 (A) The amount of property tax revenue that is e its 4 estimated to be attributable in the 1993-94 fiscal year to 'it to 5 the amount of each city's state assistance payment 6 received by that city pursuant to Chapter 282 of the )r of ?, 7 Statutes of 1979 shall be determined. city 8 (B) A factor for each city equal to the amount roue 9 determined pursuant to subparagraph (A) for that city, and 10 divided-by the total of the amounts determined pursuant 11 to subparagraph (A) for all cities, shall be determined. this 12 (C) An amount for each city equal to the factor d in 13 determined pursuant to subparagraph (B) , multiplied by t has 14 three hundred eighty-two million five hundred thousand the 15 dollars ($382,500,000) , shall be determined. y tax a 16 (D) In no event shall the amount for any city with 17 determined pursuant to subparagraph (C). exceed a per 3-94 18 capita amount of nineteen dollars and thirty-one cents ,nue 19 ($19.31), as determined in accordance with that city's t not y 20 population on January 1, 1993, as estimated by the r the 21 Department of Finance. For 22 (E) The amount determined for each city pursuant to City" 23 subparagraphs (C) and (D) shall be the amount of a, or 24 property tax revenueto be subtracted from the amount hool 25 of property tax revenue deemed allocated in the prior any 26 year. any. 27 (3) The Director of Finance shall, by July 15, 1993, any 28 report to the Joint Legislative Budget Committee those .tion- 29 amounts determined pursuant'to paragraph (2) . at to 1 30 (4) On or before August 15, 1993, the Director of 31 Finance shall notify each county auditor of the'amount of med 32 property tax revenue reduction determined for each.city 1 be ! 33 located within that county. ,ctor � 34 (c)' (I) The amount of property,tax revenue deemed 35 allocated in the prior fiscal year to'each special district, as :ions 36 defined pursuant to subdivision (m) of Section 95, shall be two 37 reduced by the amount determined for the district 1 the 38 pursuant to paragraph (3) and increased by the amount 39 determined for the district pursuant to paragraph (4) ( 40 The total net amount of these changes is intended to 99 99 AB 2797 = 16 - 1 6 -1 equal two hundred forty-four million dollars 'j 1 2 ($244,000,000) in the 1993-94 fiscal year. 3 (2) (A) Notwithstanding any other provision of this 4 subdivision, no reduction shall be made pursuant to this 5 subdivision with respect to any of the following special 6 districts: 7 (i) A local hospital district as described in Division 23 8 (commencin with Section 32000 of the Health and g ) 9 Safety Code. 10 (ii) A water agency that does not sell water at retail, 11 but not including an agency the primary function of 12 which, as determined on the basis of total revenues, is i 13 flood control. i 14 (iii) A transit district. 15 (iv) A police protection district formed pursuant to 16 Part 1 (commencing with Section 20000) of Division 14 of 17 the Health and Safety Code. 18 (v) A special district that was a multicounty special 19 district as of July�l, 1979. ? 20 (B) Notwithstanding any other provision of this 21 subdivision, the first. one hundred four thousand dollars 22 ($104,000) of the amount of any reduction that otherwise .23 would be made under this subdivision with respect to a i 24. qualifying community services district shall be excluded. 25 For purposes of this subparagraph, a "qualifying 26 community services district" means a community service 27 district that meets all of the.following requirements: 28 .(i) Was formed pursuant to Division 3 (commencing 29 with Section 61000) of Title 6 of:the Government Code. 30 (ii) Succeeded to the duties and properties of a police 31 protection district upon the dissolution of that district. 32 (iii). Currently .provides police protection services to 33 substantially the same territory as did that district. 34 (iv). Is located within a county in which the board of W 35 supervisors has requested the Department of Finance 36 that this subparagraph be operative in the county. 37 (3) (A) On or before September 15, 1993, the county 38 auditor shall determine an amount for each special 39 district equal to the amount of its allocation determined 40 pursuant to Section 96 or 96.1, and Section 96.5 or their 99 - 17AB 2797 — I predecessor sections for the 1993-94 fiscal year multiplied dollars Ago' 2 by the ratio determined pursuant to paragraph (1) of of this 3 subdivision (a) of former Section 98.6 as that section read to this 4 on June 15, 1993. In those counties that were subject to ;pecial 5 former Sections 98.66, 98.67, and 98.68, as those sections 6 read on that same date, the county auditor shall Sion 23 f 7 determine an amount for each special district that -.h and 8 represents the current amount of its allocation 9 determined pursuant to Section 96 or 96.1, and Section retail, 10 96.5 or their predecessor sections for the 1993-94 fiscal ion of 11 year that is attributed to the property tax shift from ..ues, is 12 schools required by Chapter 282 of the Statutes of 1979. 13 In that county subject to Section 100.4, the county auditor 14 shall determine an amount for each special district that .ant to i 15 represents the current amount of its allocations n 14 of 16 determined pursuant to Section 96, 96.1, 96.5, or 100.4 or 17 their predecessor sections for the 1993-94 fiscal year that 3pecial 18 is* attributable to the property tax shift from schools 19 required by Chapter 282 of the Statutes of 1979. In if this 20 determining these amounts, the county auditor shall 21 adjust for the influence of increased assessed valuation dollars rwise22 within each district, including the effect of jurisdictional e ct to a 23 changes, and the reductions in property tax allocations -luded. 24 required in the 1992,93 fiscal year by Chapters 699 and I g 25 , 1369 of the Statutes of 1992-1n the case of a special district ifyin ;ervice a 26 that has been consolidated or reorganized, the auditor 27 shall determine the amount of its current property tax its: 28 allocation that is attributable to the prior district's or Code. ing 29 districts' receipt of'state assistance payments pursuant ursuant to police 30 Chapter 282 of the Statutes of 1979. Notwithstanding any trict. 31 other provision of this paragraph, for a special district that ices to 32 is governed by a city council or whose governing board 33 has the same -membership as a city council and that is a yard of 34 subsidiary district as defined in subdivision' (e) of Section finance 35 .16271 of the Government Code, the county auditor shall 36 multiply the amount that otherwise would be calculated county 37 pursuant to this paragraph by 0.38 and the result shall be special 38 used in the calculations required by paragraph (5). In no -mined 39 event shall the amount determined by this paragraph be r their 0, 40 less than zero. 99 99 AB 2797 1 (B) Notwithstanding subparagraph (A) , commencing 2 with the 1994-95 fiscal year, in the County of Sacramento, 3 the auditor shall determine the amount for each special 4 district that represents the current amount of its 5 allocations determined pursuant to Section 96, 96.1, 96.5, 6 or 100.6 for the 1994-95 fiscal year that is attributed to the 7 property tax shift from schools required by Chapter 282 '► 8 of the Statutes of 1979. 9 (4) (A) On or before September 15, 1993, the county 10 auditor shall determine an amount for each special It 11 district that is engaged in fire protection activities, as L 12 reported to the Controller for inclusion in the 1989-90 1� 13 Edition of the Financial Transactions Report Concerning 1 14 Special Districts under the heading of"Fire Protection," 144 15 that is equal to the amount of revenue allocated to that 15 16 special district from the Special District Augmentation 16 17 17 Fund for fire protection activities in the 1992-93 fiscal 18 year. In the case of a special district, other than a special 18 19 district governed by the county board of supervisors or 19 20 whose governing body is the same as the county board of 20 2121 supervisors, that is engaged in fire protection activities as 22 22 reported to the Controller, the county auditor shall also 23 23 determine the amount by which the district's amount 24 24 determined pursuant- to paragraph (3) exceeds the 25 25 amount by which its allocation was reduced by operation ` . 26 of former Section 98.6 in the 1992-93 fiscal year. This 26 27 amount shall be added to the amount otherwise 27 28 determined for the district under this paragraph. In any 28 29 county subject to former Section 98.65, 98.66, 98.67, or 29 30 .98.68 in that same fiscal year, the county auditor shall 3� 31 determine for each special district that is engaged in fire 32 protection activities an amount that is equal to. the 32 1 33 amount determined for that district pursuant to 33 r 34 paragraph (3) 34 1 35 (B) For purposes of this paragraph, a special district 35 ° 36 includes any special district that is allocated property tax 36 o 37 revenue pursuant to this chapter and does not appear in 37 t t 38 the State Controller's Report on Financial Transactions 38 94 39 Concerning Special Districts, but is engaged in fire 39 ti { 40 in 99 _ 19 — AB 2797 I protection activities and appears in the State Controller's acing 2 Report on Financial Transactions Concerning Counties. .ento, .ectal 3 (5) The total amount of property taxes allocated to if- its 4 special districts by the county auditor as a result of 96 5, 5 paragraph (4) shall be subtracted from the amount of , . :o the 6 property tax revenues not allocated to special districts by -r 282 7 the county auditor as a result of paragraph (3) to 8 determine the amount to be deposited in the Education aunty 9 Revenue Augmentation Fund as specified in subdivision 1 )ecial 0 (d) . --s, as 11 (6) On or before September 30, 1993, -the county 39-90 I 12auditor shall notify the Director of Finance of the net 13 .ning amount determined for special districts pursuant to ion," 14 paragraph (5) . that 15 (d) (1) The amount of property tax revenues not 16 allocated to the county, city and county,,cities within the ation fiscal 17 - county, and special districts as a result of the reductions )ecial 18 required by subdivisions (a), (b)., and (c) shall instead be )rS or 19 deposited in the Educational Revenue Augmentation ,.rd of 20 Fund established in each county or city' and county ies as 21 pursuant to Section 97.2. The amount of revenue in the I also 22 Educational Revenue Augmentation Fund, derived from Count 23 whatever source, 'shall be allocated pursuant to the 24 paragraphs .(2) and (3) to school districts and -county ation 25 offices of education, in total, and to community college This 26 districts,in total, in the same proportion that property tax 27 revenues were distributed to school districts-and county ,.wise -i any. 28 offices of education,, in �total, and community college, ;7, or 29 districts,, in total, during the 1992-93 fiscal year. shall 30 (2) The county auditor- shall, based on information .i fire 31 provided by the county superintendent of schools the 32 pursuant to this paragraph, allocate that proportion of the 33 revenue in the Educational Revenue Augmentation t. to 0 34 Fund to be allocated to school districts and county offices strict 35 of education only to those school districts and county y tax 36 offices of education within the county that are not excess ar in 37 tax school entities, as defined in subdivision (n)�of Section ! 38 95. The county superintendent of schools shall determine tions fire 39 the amount to be allocated to each school district in 40 inverse proportion to the amounts of property, tax 99 99 AB 2797 I revenue per average daily attendance in each school 2 district. For each county office of education, the 3 allocation shall be made based on the historical split of 4 base property tax revenue between the county office of 5 education and school districts within the county. In no 6 event shall any additional money be allocated from the 7 Educational Revenue Augmentation Fund to a school 8 district or county office of education upon that district or 9 county office of education becoming an excess tax school 10 entity. If, after determining the amount to be allocated to 11 each school district and county office of education, the 12 county superintendent of schools determines there are 13 still additional funds to be allocated, the county 14 superintendent of schools shall determine the remainder 15 to be allocated in inverse proportion to the amounts of 16 property tax revenue, excluding Educational Revenue. 17 Augmentation Fund moneys, per average daily 18 attendance in each remaining school district, and on the 19 basis of the historical split described above for each 20 county office of education, that is not an excess tax school 21 entity until all funds that would not result in a, school 44 22 district or county office of education becoming an excess 23 tax school entity are allocated. The 'county 24 superintendent of schools may determine the amounts to 25 be allocated between each school district and county VIR 26 office of education to ensure that all funds that would not 27 result in a school district or county office of education 28 becoming an excess-tax school entity are allocated. 29 (3) The county auditor 'shall, based on information 30 provided by the Chancellor of the California Community 31 Colleges pursuant to this paragraph, allocate that 33 32 proportion of the revenue in the Educational Revenue 33 Augmentation. Fund to be allocated to community 3 34 college'districts only to those community college districts 3 35 within the county that are not excess tax school entities, 3 36 as defined in subdivision (n) of Section,95. The chancellor 3 37 shall determine the amount to be allocated to each 3' 38 community college district in inverse proportion to the 3 39 amounts of property tax revenue per funded full-time 3 40 equivalent student in each community college district. In 4" 99 - 21 — AB 2797 -chool f I no event shall any additional money be allocated from the , - the 2 Educational Revenue Augmentation Fund to a slit of 3 community college district upon that district becoming ice of 4 an excess tax school entity. In no 5 (4) (A) If, after making the allocation required n the 6 pursuant to paragraph (2) , the auditor determines that chool 7 there are still additional funds to be allocated, the auditor -ict or 8 shall allocate those excess funds pursuant to paragraph chool 9 (3) . If, after making the allocation pursuant to paragraph :ed to 10 (3), the auditor determines that there are still additional 1, the 11 funds to be allocated, the auditor shall allocate those e are 12 excess funds pursuant to paragraph (2) . If, after )unty i 13 determining the amount to be allocated to each finder 14 community college district, the Chancellor of the its of 15 California Community Colleges determines that there ,enue. 16 are still additional funds to be allocated, the Chancellor daily 17 of the California Community Colleges shall determine n the 18 the remainder to be allocated to each community college each 19 district in inverse proportion to the amounts of property chool dllk 20, tax revenue, excluding ., Educational Revenue chool 21 Augmentation Fund moneys, per funded full-time xcess 22 equivalent student in each remaining community college - )linty 23 district that is not an excess tax school entity until all funds ats to 24 that would. not result in, a community college district aunty 25 becoming an excess tax school entity are allocated. -96 fiscal year etftd ea�eh fiseal yeecr 26 (B) For the 1995 d not ation 27 thereafter- only, if, after making the allocations pursuant . 28 to paragraphs (2) and (3) and subparagraph (A), the ation 29 auditor determines that there are still additional funds to unity 30 be allocated, the auditor shall allocate those excess funds. that i 31 to the county superintendent of schools..-Funds allocated enue i 32 pursuant to this -, subparagraph shall be counted as unity 33, property tax revenues for special education programs in tricts 34 -augmentation of the amount calculated 'pursuant to ities, 35 Section ection 2572 of the Education Code, to the extent that !e1lor 36 those property tax revenues offset state aid for county each 37 offices of education and school districts within the county the 38 pursuant to Section 56712 of the Education Code. FeT-the -time 39 95A6 fisea4 yeff eftly,this This subparagraph shall have Ct. In 40 no application to the County of Mono and the amount 99 99 `AB2797 — 22 — � •y�P 1 allocated pursuant to this subparagraph in the County of � 1 2 Marin shall not exceed five million dollars ($5,000,000) . 2 3 (5) For purposes of allocations made pursuant to 3 4 Section 96.1 for the 1994-95 fiscal year, the amounts 4 5 allocated from the Educational Revenue Augmentation 5 6 Fund pursuant to this subdivision, other than those 6 7 amounts deposited in the Educational Revenue '! 7 8 Augmentation Fund pursuant to any provision of the 8 9 Health and Safety Code, shall be deemed property tax 9 10 revenue allocated to the Educational Revenue 10 11 Augmentation Fund in the prior fiscal year. 11 12 SEC. 3. Section 97.38 of the Revenue and Taxation 12 13 Code is amended to read: 13 14 97.38. Notwithstanding any contrary provision in 14 15 paragraph (4) of subdivision (d) of Section 97.3, for the 15 16 County of Marin, commencing with the 1993-94 fiscal 16 17 year, ftftd for the County of Mono, commencing with the 17 18 1994-95 fiscal year,and for every other countyin the state 18 19 commencing with the 1996-97fiscal year, if, after making 19 20 the allocations pursuant to paragraph (2) of subdivision ;;,;, 20 21 (d) of Section 97.3 as required by subparagraph (A) of21 22 paragraph (4) of subdivision (d) of Section 97.3 and after 22 23 making- the any allocation required pursuant 'to 23 24 subparagraph (B) of paragraph (4) of subdivision (d) of ! 24 25 Section .97.3, the auditor. determines that each 25 26 community college district located entirely within,that 26 27 county is an excess school tax entity as defined in 27 28 subdivision (n) of Section 95, the auditor shall then apply 28 29 any remaining funds to decrease the amounts of those 29 30 reductions calculated pursuant to Section 97.3 with 30 31 respect to the county, cities,: and special districts in 31 32. proportion to the amount of the reduction otherwise 32 33 calcurated under Section 97.3 for. each of those agencies. 33 34 SEC. 4. Section 97.52 is added to the Revenue and 34 35 Taxation.Code, to read: 35 36 97.52. (a) (1) Notwithstanding any other provision 36 37 of this article, commencing with ad valorem property tax 37 38 revenue allocations for the 1996-97 fiscal year, the auditor 38 39 shall allocate to the county, and each city and special 39 40 district, rather than to the county's Educational Revenue y 40 99 - 23 — AB 2797 .nty of '` 1 Augmentation Fund, the shift growth amount, as defined 000) . 2 in subdivision (b) , of that local agency. Lnt to 3 (b) (1) For purposes of this section, "shift growth counts 4 amount" means, with respect to the county, or a city or tation 5 special district, the difference between the following: those 6 (A) The total amount of property tax revenue that is venue ( ( 7 attributable in the relevant fiscal year to the reductions A the 8 calculated for the relevant local agency pursuant to ty tax 9 Sections 97.2 and 97.3 for the 1992-93 and 1993-94 fiscal venue 10 years. 11 (B) The total amount of property tax revenue that is kation 12 attributable in the 1994-95 fiscal year to the reductions 13 calculated for the relevant local agency pursuant to :)n in 14 Sections 97.2 and 97.3 for the 1992-93 and 1993-94 fiscal :)r the 15 years. fiscal 16 (2) Any reduction in the amount of revenues th the 17 deposited in a county's Educational Revenue state 18 Augmentation Fund resulting from the implementation raking 19 of this section, shall be applied exclusively to reduce the vision V 20 amount of revenues allocated from that fund to school ;A) of 21 districts and county offices of education, and shall in no 1 after 22 event be applied to reduce the amount of revenues .It ,to 23 allocated from that fund to community college districts. (d) of 24 SEC. 5. No reimbursement is required by this act each 25 pursuant to Section 6 of Article XIII B of the California that 26 Constitution because this act provides for offsetting ed in 27 savings to local agencies or school districts that result in apply.- 28 no net costs to the local agencies or school districts,within those 29 the meaning of Section 17556 of the Government Code. with 30 Notwithstanding Section 17580 of the Government cts in 31 Code,unless otherwise specified, the provisions of this act ;rwise 32 shall become operative on the same date that the act =ies. 0' 33 takes effect pursuant to the California Constitution. e and 34 SEC. 6. This act is an urgency statute necessary for the 35 immediate preservation of the public peace, health, or vision 36 safety within the meaning of Article IV of the -ty tax 37 Constitution and shall go into immediate effect. The facts aditor 38 constituting the necessity-are:- pecial a 39 In order to provide timely and essential fiscal relief that venue G 40 will allow financially troubled local agencies to improve 99 99 s AB 2797 — 24 - 1 4 —I a currently inadequate level of public services, it is 2 necessary that this act take effect immediately. 1 I } 0 99