The URL can be used to link to this page

Home My WebLink AboutMINUTES - 05201997 - C34 TO: BOARD OF SUPERVISORS Contra SE-L L fry. rr FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR Costa County DATE: May 15, 1997 SUBJECT: LEGISLATION: SUPPORT FOR LEGISLATION RETURNING PROPERTY TAX FUNDS TO THE COUNTY SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. REAFFIRM the position of SUPPORT for AB 1 (Aguiar) initially taken by the Board on January 14, 1997. AB 1 (as amended March 31, 1997) freezes the transfer of property tax to the State at the 1996-97 level and begins returning a portion of the property tax to local taxing jurisdictions. The property tax transfer to the Educational Revenue Augmentation Fund (ERAF) would be reduced by 10% per year beginning with the 1997-98 fiscal year and continuing until it was entirely phased out in fiscal year 2006-07. Senator Rainey and Assemblywoman Leach are co-authors of AB 1. AB 1 is in the Assembly Local Government Committee. 2. ADOPT a position in SUPPORT of AB 95 (Sweeney). AB 95 (as amended April 15, 1997) declares the intent of the Legislature to freeze the transfer of property tax to the ERAF at the 1996-97 level and reduce that level by 10% each year. However, the actual language to accomplish this has not yet been amended into the bill. Senator Rainey and Assemblywoman Aroner are co- authors of AB 95. AB 95 is pending a hearing in the Assembly Appropriations Committee, having passed the Assembly Local Government Committee April 2, 1997 by a vote of 13:0. 3. ADOPT a position in SUPPORT of AB 1349 (Kaloogian). AB 1349, as introduced, repeals the ERAF and returns all of the revenue to the local taxing jurisdictions. AB 1349 is in the Assembly Local Government Committee. CONTINUED ON ATTACHMENT: YES SIGNATURE: Z /ill .t RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): eQ�Z I& ACTION OF BOARD ON May 20, 1997 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X District III 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: District III ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED May 20, 1997 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF cc: SUPERVISORS AND COUNTY ADMINISTRATOR See Page 2 BY �� DEPUTY 4. REAFFIRM the position of SUPPORT for ACA 4 (Aguiar & Sweeney) initially taken by.the Board on January 14, 1997. ACA 4 (as amended April 14, 1997) freezes the transfer of property tax to the State at the 1996-97 level and begins returning a portion of the property tax to local taxing jurisdictions. The property tax transfer to the Educational Revenue Augmentation Fund (ERAF) would be reduced by 10% per year beginning with the 1997-98 fiscal year and continuing until it was entirely phased out in fiscal year 2006-07. ACA 4 is in the Assembly Elections, Reapportionment, and Constitutional Amendments Committee, having been passed by the Assembly Local Government Committee April 17, 1997. 5. ADOPT a position in SUPPORT of SB 880 (Craven). SB 880 (as amended April 14, 1997) freezes the transfer of property tax to the State at the 1996-97 level and begins returning a portion of the property tax to local taxing jurisdictions. The property tax transfer to the Educational Revenue Augmentation Fund (ERAF) would be reduced by 10% per year beginning with the 1997-98 fiscal year and continuing until it was entirely phased out in fiscal year 2006-07. SB 880 is on the Senate Appropriations Committee Suspense File, having been passed by the Senate Local Government Committee April 16, 1997 by a vote of 6:0. 6. ADOPT a position in SUPPORT of SB 889 (Hayden). SB 889, as introduced, reduces the transfers to the ERAF by an unspecified schedule..SB 889 is in the Senate Local Government Committee. BACKGROUND: On May 12, 1997, the Board of Supervisors indicated an interest in taking a position on various ERAF bills which would return a portion of the property tax taken by the State, beginning in the 1992-93 fiscal year, to the counties and other local taxing jurisdictions. It was noted that the Governor's "May Revise" proposes a one-time transfer of $100 million to the counties. In response to the Board's request, we have identified six bills that either repeal the ERAF or phase it out over a period of years. The Board of Supervisors.is already on record in support of AB 1 and ACA 4. We are recommending that the Board reaffirm that position of support and, in addition, declare the Board's support for the other measures, particularly AB 95 and SB 880, which appear to be the.most likely vehicles to accomplish any relief in ERAF this year. cc: County Administrator Auditor-Controller Les Spahnn Heim, Noack, Kelly & Spahnn 1121 L Street, Suite 100 Sacramento, CA 95814 Casey Sparks Kaneko, Executive Director Urban Counties Caucus 1100 K Street, Suite 101 Sacramento, CA 95814 Steve Szalay, Executive Director California State Association of Counties 1100 K Street, Suite 101 Sacramento, CA 95814 -2- , AMENDED IN ASSEMBLE' MARCID[ 31, 1997 CALIFORNIA LEGISLATURE-1997-98 REGULAR SESSION ASSEMBLY BILL No. 1 Introduced by Assembly MemberAgoiar Aguiar, Ackerman, Alby, Ashburn, Baldwin, Battin, Bordonar©, E Campbell, Cunneen, Frusetta, Goldsmith, Granlund, ;mouse, Leach, Leonard, Margett, Morrow, tiller, Prenter, Runner, Takasugi, and Woods (Coauthors• Senators Costa,Johannessen, Kelley, McPherson, Monteith, .Rainey, Schiff, and Solis) z December 2, 1996 An act to amend Section 41204.1 ofthe Education Code, and j to add Section 97:43 to the Revenue and Taxation Code, f # relating to local government finance, . and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 1, as amended, Aguiar. Local government finance: property tax revenue allocation: local agency relief. Existing law requires the county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and generally pre-vides requires that each jurisdiction sly be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications,and that jurisdiction's portion of the annual tax increment, as defined. Existing property tax law modifies these general allocation provisions by requiring, 98 ........................._.•.:_u.:,•,:,..:�..:l:�:r'm.......:r_':-�sic.'uu:} �, i�..sG4t5:s.i ....,�iisU24 -. .. AB 1 — 2 — for 2for purposes of determining property tax revenue allocations 4 in each county for the 1992-93 and 1993-94 fiscal years, that t . the amounts of property tax revenue deemed allocated,in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to t:he county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and ' 3 the county office of education. This bill would modify these reduction and transfer requirements, for the 1997-98 fiscal year and each fiscal year thereafter, by prohibiting the total amount allocated to a county's Educational Revenue Augmentation Fund pursuant to those requirements from exceeding the total amount allocated to that fund for the .1996-97 fiscal year. This bill would also require, commencing with the 1997-98 fiscal year, that each reduction and transfer amount calculated for a local agency in a county be annually reduced in accordance with an unspecified schedule, and that the revenues not allocated I to the county's Educational Revenue Augmentation Fund as a result of these reductions be instead allocated among the local agencies in the county, as provided. By imposing new duties in the annual allocation of ad valorem property tax revenues, this bill would impose a state-mandated local program. .existing law requires the Director of Finance to make certain adjustments in one of the formulas used in computing t the state's obligation under the California Constitution to provide funding for school districts and community college districts so as to ensure that the modifications in property tax { revenue allocation requirements that were made by a prior enactment do not have a net fiscal impact on school districts or community college districts, or upon the state's funding obligation to those districts. This bill would instead apply the adjustment requirement w_ to modifications in property tax revenue allocation requirements that are made by "qualified provisions," and would deme `qualif7ed provisions"to include both the prior enactment currently specified by the adjustment 98 < 1; _ 3 _ z AB 1 requirement and a specified statute proposed to be added by this bill. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for f making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would declare that it is to take effect immediately } as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows. 1 SECTION 1. Section 41204.1 of the Education Code is 2 amended to read.• 3 .41204.1. (a) (1) Pursuant to paragraph (2) of 4 subdivision (b) of Section 41204, the Director of Finance 5 shall annually adjust "the percentage of General Fund 6 revenues appropriated for school districts. and 7 community college districts, respectively, in the 1986-87 8 fiscal year" for purposes of applying paragraph (1) of 9 subdivision (b) of Section 8 of Article XVI of the } 10 California Constitution, to reflect those property tax . 11 revenue allocation.. modifications, required by the i 12 amendments made to Chapter 6 (commencing with 13 Section 95) of Part 0.5 of Division 1 of the Revenue and. 14 Taxation Code by the atm adding this seetien qualifying 15 provisions, as defined in paragraph (2), in a manner that 16 ensures that those modifications will have no net fiscal 17 impact upon the amounts that are otherwise required to 18 be applied by the state for the support of school districts 19 and community college districts pursuant to Section 8 of 20 Article XVI of the California Constitution. s 21 (2) For purposes of this section, `qualifying 22 provisions"means both of the following.• 23 (A) The amendments made to Sections 97.2 and 97.3 - 24 ofthe Revenue and Taxation Code by Chapter 1111 of the 25 Statutes of 1996 98 AB 1 -- 4 — ? 1 (B) Section 97.43 of the revenue and Taxation Code.. - 2 (b) It is the intent of the .Legislature ift enetetin the - 3 aet stddittg this seetiett to ensure both of the following: 4 (1) That the changes required by the aet i- g t44s 5 s eet4eft qualifying ,provisions in -the allocations of ad 6 valorem property tax revenues do not have a net fiscal 7 impact upon school districts, as defined in accordance € ' j 8 with Section 41302,5, or community college districts. 9 (2) That the changes required by the a*_4 acd}tg this 10 seems qualifying provisions in the allocations of ad ! 11 valorem property tax revenues do not have a net fiscal i 12 impact upon the amounts of revenue otherwise required 13 to be applied by the state for the support of school districts 14 and communitycollege co g districts pursuant to Section 8 of j' 15 Article XVI of the California Constitution. 16 SEC. 2. Section 97.43 is added to the Revenue and 17 Taxation Code, to read: 18 .97.43. (a) Notwithstanding any other provision of I : 19 this article, for purposes of ad valorem property tax 20 revenue allocations for the 1997-98 fiscal year and in each 21 fiscal year thereafter, the auditor shall comply with both 22 of the following requirements: 23 (1) The auditor shall not allocate to the county's 24 Educational Revenue Augmentation Fund a total 25 amount of ad valorem property tax revenue that exceeds ,yyy 26 the total amount of ad valorem property tax revenue that 27 was allocated to the county's Educational Revenue 28 Augmentation Fund in the 1996-97 fiscal year. 29 (2) (A) The auditor shall allocate to the county's 30 Educational Revenue Augmentation Fund only that 31 percentage specified in subparagraph (B) of each 32 amount of ad valorem property tax revenue that is 33 required to be allocated to that fund rather than a local 34 agency as a result of the total reductions calculated for 35 that local agency pursuant to Sections 97.2 and 97.3. 36 (B) For purposes of subparagraph (A), the allocation 37 percentages are as follows: 38 98 - 5 — AB 1 } 1 Rseal { 2 '�� r 3 end eaeh fieeai yeaf 8 4 5 Fiscal Year Percentage (%) 6 1997-98 90 7 19999 80 8 1999-2000 70 9 2000-01 60 10 2001-02 50 t 11 2002-03 . 40 12 2003-04 30 13 2004-05 20 14 2005-06 10 15 2006-07 and each fiscal year thereafter 0 16 17 (b) In the 1997-98 fiscal year and each fiscal year 18 thereafter, any amount of ad valorem property tax 19 revenue that is not allocated to a county's Educational j 20 Revenue Augmentation Fund as a result of any limit or 21 reduction established in subdivision (a) shall instead be 22 allocated among the local agencies in the county in 23 accordance with each local agency's proportionate share 24 of the total amount of ad valorem property tax revenues 25 that would be required to be allocated to. the county's 26 Educational Revenue Augmentation Fund in the absence 27 of this section. 28 SEG. 2-. 29 SEC. 3. No reimbursement is required by this act 30 pursuant to Section 6 of Article XIII B of the California 31 Constitution because this act provides for offsetting 32 savings to local agencies or school districts that result in 33 no net costs to the local agencies or school districts,within 34 the meaning of Section 17556 of the Government Code. 35 Notwithstanding Section 17580 of the Government y 36 Code,unless otherwise specified, the provisions of this act 4 37 shall become operative on the same date that the act 38 takes effect pursuant to the California Constitution. 39 SEC- 3- i� 98 t h R R i AB 1 - 6 - 1 SEC. 4. This , is an urgency statute necessary for thE. 2 immediate preservation of the public peace, health, 01 3 safety within the meaning of Article IV of health'. Constitution and shall go into immediate effect. The fact,, 5 constituting the necessity are: 6 In order to provide as soon as possible that measure of 7 fiscal relief that will allow local agencies to begin tc 8 restore an adequate level of essential public services, it is 9 necessary that this.act take effect immediately. _ f a i 98 Q ! t ;r AMENDED IN ASSEMBLY APRIL 15, 1997 AMENDED IN ASSEMBLY MARCH 31, 1997 t CALIFORNIA LEGISLATURE-1997-98 REGULAR SESSION t ASSEMBLY BILL No. 95 1 Introduced by Assembly Meffib4 Sweeney Members ,Sweeney and Aguiar (Coauthors. Assembly Members Ackerman, Alquist, Aroner, Baca, Baldwin, Pordonaro, Brown, Cardoza, Cunneen, Davis, Escutia, Frusetta, Gallegos, Granlund, Ha vice, Keeley, Knox, Kuehl, Margett, Mazzoni, Migden, Napolitano, Ortiz, Perata, Shelley, Strom Martin, Takasugi, Thomson, Vincent, Washington, Wildman, Woods, and Wright) (Coauthors: Senators Alpert, Costa,Johannessen, Karnette, McPherson, Rainey, Sher, and Solis) January 6, 1997 An act to amend Section 41204.1 of the Education Code, and to add Section 97.43 to the Revenue and Taxation Code, relating to local government finance, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 95, as amended; Sweeney. Local government finance: property tax revenue allocation: local agency relief. Existing law requires the county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and t 97 5 AB 95 — 2 — generally requires that each jurisdiction be allocated an ' amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. Existing property tax law modifies these general allocation provisions by requiring, for purposes of determining property tax revenue allocations in each county for the 1992-93 and 1993-94 fiscal years, that the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education. This bill would modify these reduction and transfer requirements, commencing with the 1997-98 fiscal year, by requiring that each reduction and transfer amount calculated for a local agency in a county be annually reduced in accordance with an unspecified schedule, and that the revenues not allocated to the county's Educational Revenue Augmentation Fund as a result of these reductions be instead allocated among the local agencies in the county, as provided. By imposing new duties in the annual allocation of ad valorem property tax revenues, this bill would impose a state-mandated local program. This bill would also state the intent of the Legislature, and would require the Director of Finance to make certain adjustments, with respect Ito ensuring that the modifications required by this bill to property tax revenue allocations do not have a net fiscal impact on school districts or community college districts, or upon the state's obligation under the California Constitution to provide funding to those districts. The California Constitution requires the.state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. y 97 - 3 — AB 95 This bill would declare that.it is to take effect immediately } as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. The Legislature hereby finds and j 2 declares that it is the intent of the Legislature in enacting 3 this act to do all of the following: ?! 4 (a) Limit the amounts of property tax revenues that 5 are shifted from counties, cities, and special districts to 6 Educational Revenue Augmentation Funds to those 7 amounts that were so shifted in the 1996-97 fiscal year. 8. (b) Annually reduce the total amount of revenues that .9 are, shifted to Educational Revenue Augmentation 10 Funds, estimated to be three billion four hundred million 11 dollars ($3,400,000,000) each year, by 10 percent per year 12 until the total amount of revenues that are so shifted is 13 reduced to zero. } 14 c Shane of Ore revenues derrived � the 15 s e leea 3 the 16 etmount se shaped being a pereentage 4 fl-rat affiettlit of 17 she ineeme tam paid b�y eaeh per-sen whe beth lies a-Rd 18 werks ift his or ler- ewn eeffiffittf4t�- 19 {d-} Ensure that those changes specified in this section 20 are made only after all calculations are made with respect 21 to those revenues that are to be allocated pursuant to 22 Section 8 of Article. XVI, in order to ensure that schools, 23 from the kindergarten level to the community college 24 level, inclusive, are fully funded. 25 SEC. .2. Section 41204.1 of the Education Code is 26 amended to read: 27 41204.1. (a) (1) Pursuant to paragraph (2) of �? 28 subdivision (b) of Section 41204, the Director of Finance 29 shall annually adjust "the percentage of General Fund 30 revenues appropriated for school districts and 31 community college districts, respectively, in the 1986-87 32 fiscal year" for purposes of applying paragraph (1) of 33 subdivision (b) of Section 8 of Article XVI of the 97 I' i 3 AR 95 — 4 - 1 -- 4 --- 1 California Constitution, to reflect those property tax 2 revenue allocation 'modifications, required by the 3 amendments made to Chapter 6 (commencing with 4 Section 95) of Part 0.5 of Division 1 of the Revenue and 5 Taxation Code by qualifying provisions, as defined in 6 paragraph (2), in a manner that ensures that those 7 modifications will have no net fiscal impact upon the 8 amounts that are otherwise required to be applied by the 9 state for the support of school districts and community 10 college districts pursuant to Section 8 of Article XVI of the 11 California Constitution. 12 (2) .For purposes of this section, "qualifying 13 provisions" means both of the following: 14 (A) The amendments made to Sections 97.2 and 97.3 15 of the Revenue and Taxation Cod_ e by Chapter 1111 of the 16 Statutes of 1996. 17 (fi) Section 97.43 of the Revenue and Taxation Code. 18 (b) It is the intent of the Legislature to ensure both of 19 the following: 20 (1) That the changes required by the qualifying 21 provisions in the allocations of ad valorem property tax 22 revenues do not have a net fiscal impact upon school 23 districts, as defined in accordance with Section 41302.5, or 24 community college districts. 25 (2) That the changes required by the qualifying 26 provisions in the allocations of ad valorem property tax 27 revenues do not have a net fiscal impact upon the 28 amounts of revenue otherwise required to be applied by ,> 29 the state for the support of school districts and 30 community college districts pursuant to Section 8 of 31 Article XVI of the California Constitution. 32 SEC. 3. Section 97.43 is added to the Revenue and 33 Taxation Code, to read: 34 97.43. (a) (1) Notwithstanding any other provision `+M 35 of this article, for purposes of ad valorem property tax 36 revenue allocations for the 1997--98 fiscal year and in each 37 fiscal year thereafter, the auditor shall allocate to the 38 county's Educational Revenue Augmentation Fund only 39 that percentage specified in paragraph (2) of each 40 amount of ad valorem property tax revenue that is 97 .�_.__. _. '' .__...,_.......:...t:✓✓..ac•:..c.�...-.........--•-_.r.»..�_,. .'.a _r,s.. ..,...r,.._,., .r. .. «......,...._..._.',�:s!:r:=''G'..::L _;C✓/"•f,.. '.+'. ::r.7vs::.:.;..:.............. ....__. a kk 3 t — 5 — AB 95 . 1 required to be allocated to that fund rather than a local 2 agency as a result of the total reductions calculated for 3 that local agency pursuant to Sections 97.2 and 97.3. 4 (2) For purposes of paragraph (1), the allocation 5 percentages are as follows: 6 7 Fiscal Year Percentage (%) 8 1997-98 9 and each fiscal year thereafter 0 10 11 (b) In the 1997-98 fiscal year and each fiscal year 12 thereafter, any amount of ad valorem property tax 13 revenue that is not allocated to a county's Educational 14 Revenue Augmentation Fund as a result of any limit or 15 reduction established in subdivision (a) shall instead be 16 allocated among the local agencies in the county in 17 accordance with each local agency's proportionate share 1.8 of the total amount of ad valorem property tax revenues 19 that would be required to be allocated to the county's 20 Educational Revenue Augmentation Fund in the absence 21 of this section. 22 SEC. 4. No reimbursement is required by this act 23 pursuant to Section 6 of Article XIII B of the California s 24 Constitution because this act provides. for offsetting s 25 savings to local'agencies or school districts that result in r 26 no net costs to the local agencies or school districts,within 27 the meaning of Section 17556 of the Government Code. 28 Notwithstanding Section 17580 of the Government 29 Code,unless otherwise specified,the provisions of this act 30 shall become operative on the same date that the act 31 takes effect pursuant to the California Constitution. 32 SEC. 5. This act is an urgency statute necessary for the t 33 immediate preservation of the public peace, health, or 34 safety within the meaning of Article IV of the s: 35 Constitution and shall go into immediate effect. The facts 36 constituting the necessity are: 37 In order to commence as soon as possible a program of 38 fiscal relief that will allow local agencies to restore an _ 97 � .:..s...,.....__....�.....t.✓.'....�.u,.............s...... .__r-.......e.n�n¢.a_u.r....+.�.sa...,_�_.�_._ A '.�z..n�_...... ... .. �... .s ......�fl .....w...........u�... ,......1<}.....��=....3t 1 :' _.� AB 95 — 6 - 1 adequate level of essential public services, it is necessary -� 2 that this act take effect immediately. 1 i r f i r � i 97 �i CALIFORNIA LEGISLATURE-1997-98 REGULAR SESSION ASSEMBLY BILL No. 1349 Introduced by Assembly Member Kaloogian February 28, 1997 An act to repeal and add Article 3 (commencing with Section 97) of Chapter 6 of Fart 0.5 of Division 1 of the Revenue and Taxation Code, relating to local governmental agencies. LEGISLATIVE COUNSEL'S DIGEST AB 1349, as introduced, Kaloogian. Local government: property taxes. Existing law provides for a prescribed revenue allocation shift for education commencing with the 1992-93 fiscal year by which certain property tax revenues were shifted from counties, cities, and special districts to school districts and community college districts. This bill would repeal those provisions and specify that a county auditor shall instead allocate the total amount of ad valorem property tax revenue that would have been required to be shifted to school and community college districts among the county and the cities and special districts in the county. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. 99 AB 1349 — 2 — The 2 — The people of the State of California do enact as follows.• 1 SECTION 1. Article 3 (commencing with Section 97) 2 of Chapter 6 of Part 0.5 of Division 1 of the Revenue and 3 Taxation Code is repealed„ 4 SEC. 2. Article 3 (commencing with Section 97) is 5 added to Chapter 6 of Fart 0.5 of Division 1 of the 6 Revenue and Taxation Code, to read: 7 8 Article 3. Restoration of Shifted Revenues 9 10 97. For each fiscal year in which this section is 11 operative, the.auditor shall allocate the total amount of ad 12 valorem property tax revenue that would. have been 13 required by former Article 3. (commencing with Section 14 97) to be.allocated to. the county's Educational Revenue 15 Augmentation Fund among the county, and the cities and 16 special districts within the county, in proportion to those 17 amounts that, in the absence of the repeal of former 18 Article 3 (commencing with Section 97), would have 19 been required by that article to be shifted from those local 20 agencies to the county's Educational Revenue 21 Augmentation Fund. O 99 AMENDED IN ASSEMBLY APRIL 14, 1997 CALIFORNIA LEGISLATURE-IWI-98 REGULAR SESSION Assembly Constitutional Amendment No. 4 Introduced by Assembly Meffiber Agttiaf Members Aguiar r and Sweeney December 2, 1996 Assembly Constitutional Amendment No. 4—A resolution 1 to propose to the people of the State of California an amendment to- the Constitution of the State, by adding f Section 1.5 to Article XIII A thereof, relating to local government finance. LEGISLATIVE COUNSEL'S DIGEST ACA 4, as amended, Aguiar. Local government finance: property tax revenue allocation: local agency relief. Existing provisions of the California Constitution previde require that the revenues derived from the general ad hz=' valorem property tax afe to be allocated to the jurisdictions in each county in accordance with law. Existing statutory law implementing these provisions requires the each county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and generally provides requires that each jurisdiction she& be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the } prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. 1 Existing statutory law modifies these general allocation 98 . ._,_.�_ _c_s_...,....-_,. _.,.-,.vi. _...._..._, •1...«:.u..:-.,•..nsr..»srZ'.. .....�_.-...... '�••�+.,,.,. ...�__..J,s,..xc.>,.._..•..v_,.� ..._..,�.,..,..,_,._... __•.--'— a-!'--�` `� J Z ACA 4 — 2 — provisions 2 —provisions by requiring, for purposes of determining property tax revenue allocations in each county for the 1992-93 and 1993-94 fiscal years, that the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue `y Augmentation Fund :in that county for allocation to school districts, community college districts, and the county office of education. This measure would modify these reduction and transfer requirements, for the 1998-99 fiscal year and each fiscal year thereafter, by prohibiting; the total amount allocated to a county's Educational Revenue Augmentation Fund pursuant to those requirements from exceeding the total amount allocated to that fund for the 1996-97 fiscal year. This WH measure. would also require, commencing with the 1998-99 fiscal year,, that each reduction and transfer amount calculated for a local agency in a county be annually reduced in accordance with eat unspeei a specified schedule, at. This measure would further require that the revenues not allocated to the county's Educational Revenue Augmentation Fund as a result of these reductions be instead allocated among the local agencies in the county, as provided, and that the decrease in'allocations to a county's Educational Revenue Augmentation Fund resulting from these limitations and reductions be first applied to reduce allocations from that fund to school districts and the county office ofeduca tion. This measure. ,would 'also .specify that the amount of moneys, required by a certain provision of the California Constitution to be applied by state for the support ofschool districts and community college. districts, be determined in that amount Mai would be determined pursuant to that provisionin the absence of this measure. Vote: 2/3: Appropriation: no. Fiscal committee: yes. State-mandated local program: no. 1Resolved by the Assembly, the Senate concurring, That 2 the Legislature of the State of California at its 1997-98 98 - 3 — ACA 4 1 Regular Session, commencing on the second day of 2 December, 1996, two-thirds of the membership of each 3 house concurring, hereby proposes to the people of the 4 State of California that the Constitution of the State be 5 amended by adding Section 1.5 to Article XIII A thereof, 6 to read: 7 SEC. 1.5. (a) Notwithstanding any other provision 8 of law, for purposes of implementing the ad valorem 9 property tax revenue allocation requirements of 10 subdivision (a) of Section 1 in the 1998-99 fiscal year and 11 in each fiscal year thereafter, both of the following 12 requirements shall apply: 13 (1) No county's Educational Revenue Augmentation 14 Fund established pursuant to Seetion Sections 97.2 and 15 97.3 of the Revenue and Taxation Code, or any successor 16 to those sections, shall be allocated a total amount of ad 17 valorem property tax revenue that exceeds the total 18 amount of ad valorem property tax revenue that was 19 allocated to that fund in the 1996-97 fiscal year. 20 (2) (A) A county's Educational Revenue 21 Augmentation Fund shall be allocated only that 22 percentage specified in subparagraph (B) of each 23 amount of ad valorem property tax revenue that is 24 required to be allocated to that fund rather than a local 25 agency as a result of the total reductions calculated for 26 that local agency pursuant to Sections 97.2 and 97.3 of the 27 Revenue and Taxation Code, or any successor to those 28 sections. � f �t� t>tr 3f2{{ 29 (.B) For purposes of subparagraph (A), the allocation 30 percentages are as follows: 31 32 +%+ 33 / 34 a-n4 eeeh fisea4 yea A 35 36 Fiscal Year Percentage (%) # 37 1997-98 90 38 1998-99 80 39 1999-2000 70 40 2000 01 60 98 ACA 4 -- 4 — 1 2001-02 50 2 2002-03 40 3 2003-04 30 4 2004=05 20 5 2005-06 10 6 2006-07 and each fiscal year Mereafter 0 7 8 (b) In the 1998-99 fiscal year and, each fiscal year 9 thereafter, both of the following-requirements shall 10 apply 11 (1) Any amount of ad valorem property tax revenue 12 that is not allocated to a county's Educational Revenue 13 Augmentation Fund as a result of any limit or reduction 14 established in subdivision (a) shall instead be allocated 15 among the local agencies in the county in accordance 16 with each local agency's proportionate share of the total 17 amount of ad valorem property tax revenues that would 18 be required to be allocated to the county's Educational 19 Revenue Augmentation Fund in the absence of this 20 section. 21 (2) Any reduction resulting from subdivision (a) in 22 the amount of ad valorem property tax revenue that is 23 allocated to a county's .,educational Revenue 24 Augmentation Fund shall be first applied to reduce 25 allocations made from that fund to school districts and the 26 county off ce of education,, and shall be applied to reduce 27 the allocations made from that fund to community 28 college districts only after the allocations made from that 29 fund to school districts and the county office of education 30 have been reduced to zero. 31 (c) The amount ofmoneys that is required by Section 32 8 ofArticle XVI to be applied by the State for the support 33 ofschool districts and comm unity college districts shall be 34 determined in accordance with Section, 8 of Article XVI 35 in that amount that would be so determined in the 36 absence of this section. G 98 a' AMENDED IN SENATE APRIL, 14, 19.97 , : . yr SENATE BILL No. 880 ,v Introduced by Senator_Craven ° ;(c author. Senator Kopp) February 26; 1997 y Anacttoa �endSeet an 41244.1 oftheEducation +G"ode., d to amend Sections 97:2 and 97Jof,and to addSection.97.43 to, the Revenue and Taxahoi Code, relating to local government finance; and .declaring the urgency thereof, to take effect immediately: LEGISLATIVECOUNSEL'S INGEST " SB asamen, ded, Craven. Lo B $ cal government finance: ro ert` tax revenue:allocation local a enc relief p p Y g y - Existing.law requires the county;auditor,in each fiscal year, to allocate property tax revenues to local' jurisdictions in V1 accordance with specified. formulas and procedures, and k{> generally pr4vides.that each jurisdiction shall be allocated an amount equal to the dotal of the amount of revenue allocated. to that jurisdiction inthe, prior fiscal year; subject to`:certain 'modifications, and that�urisd ction's portion of;the aii,nual tax increment, :as defined ,Existing 'property tax aw..-modifies i' these general allocation provisions by requiring, for purposes of determining.' property tax revenue; allocations in; each :count` for the 1992-93. and 1993-94 fiscal years, that the- . : amounts of property'tax revenue deemed allocated-in'.the. przor fiscal year to the:county, cities; and special districts be reduced inaccordance with certain formulas. It requires that the revenues not allocated to the county;. cities,'.and special 98 SB 880 — 2— r - districts as a result of these reductions be transferred to the u.. : Educational Revenue Augmentation Fund in that county for allocation, as provided; 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. nl�efi�n'';� ` rifeT the :V- 7 fisea year,�tt�e t mane r ngift I after #fie ��.�� e y t quired re A,eee t ftffiefig the eEffintyL etti aftd eeia Ei ►ts-; ta E t-iE to the ..;,,a,,,;tiet ftftd tr-ftnsfer- affletit3ts,eetlettlate ftw these aeies- thift+ t r%-Xxteftt to the 99 ftffd each fi e : This bill would limit these allocations .for the funding of . special education programs to the 1995--96 and 1996-97 fiscal years This bill would,,as provided,:for the 1997.98 fiscal year and each fiscal year there ifter. also require the auditor; pursuant to, a yvritten agreement between the board of superc�r"sors,and the county superintendent of schools with respect o special education, to allocate anyERA.Fmoney that is remaining fu after the eneral allocationsfrom thatn'.to the county superintendent. of schools; and. among the county,, cities, and special districts in proportion to the reduction and Transfer amounts calculated for.those agencies 4 This bill would alsomodify the 4e current reduction and transfer requirements, for the 1997-98` fiscal year and each fiscal , year 'thereafter; by prohibiting the total amount allocated to a county's Educational Revenue Augmentation Fun` d pursuntto those r4 quirements from exceeding ``the' tal ar,punt allocated to that fund for the 1996-97 fiscal year. This bill would also require, commencing with the 1997--98 fiscal year,' ' that each reduction and transfer arnount. calculated fora local.,agency,in a county be annually'reduced it accordance with`apt a specified schedule; a This bill tivould further.require that the. revenues not allocated to the county's Educational. Reyenue Augmentation Fund as a result of these redductionsbe in, 'allocated among the local agencies in the :county, as provided, and that the decrease in allocations to a county's Educational Revenue Aug rnen to tion P74nd resulting ting from these limitations and 98 . 3 SB 880 reductions be first applied to reduce allocations from that to the fund to school districts and the county office of education: Lt Y for By imposing new duties. in the annual allocation of ad 131le e g valorem property tax revenues, this bill would impose : a to the state-mandated local program. pecial Existing law requires he Director of Finance 'to make th. e certain adjustments in one of the formulas used in computing he state's. .obligation : under the California Constitution to provide funding. for school districts and community college �` districts so as to ensure that_the modif cations in property tax revenue allocation requirements aha were made by.a..pnor 4,111. enactment do not ha ve k net:f scal`�rnpact on school districts e. or :community college districts, or upon.: the state's funding obligation to those districts ng of This bill would lnstead.apply the adjustment requirement fiscal to modifications in property tax revenue allocation I year requirements that are rrlade by `qualified;provlslonsand ditor; would define qualified provisions"to include both the prior rd of enactment currently specified by the adjustment with requirement and a specif ed atatute proposed to be added by - ythat. this bill` to the The..California Constitution.requires the state:to reimburse aunty,, local".agences and school districts for certain costs mandated u and:. by the tate Statutory provisions establish procedures; for ` making that:reimbursement i n and -This..bill;would rovide that no reimbursement is re wired each -P q by,<this act for a specified reason.. zount This:bill would declare-that it is.It take effect immediately Cation as an urgency statute: g the Vote: 2/3: Appropriation: no. : Fiscal committee yes. year. State_mandated local program: yes. 97-98 Zount The people of the State of California do,enact as follows luced SECTION L : The Legislature hereby Ends and Gated 2 declares tliatitis the In ofthe Legislature lnenacting .nd as 3 this act to do aff of the following .. g the. . E 4 (a)._Limit the amounts of property tax revenues -that t the 5 are shifted from counties, cities,;and special districts to ,,enue > an d y 98 98 t , j ' SB 880 — 4 - 1 Educational. Revenue Augmentation Funds to those 2 amounts that were so shifted in the 1996-97fiscal°year. 3 (b) Annuallyreduce the total amount ofre venues.that 4 are shifted :to Educational. Revenue Augmentation 5 Funds, estimated to be three billion-fourhundredmillion 6 dollars ($3,400,000,006 each year, by lOpercen t per year 7 until the total amount of revenues that are.so shifted is 8 reduced to.zero, 9 (c) Ensure that those changes specified in this section 1 1Q are made onlyafter all calculations are made with respect R 11 to those revenues that are to be allocated:pursuant to 12 :::S Ction8 of Ai in order to ensure- that schools, 1 13 from !the, kindergarten level to 'the community,college 14: level; :in clusiv,e, are fully Aunded. 15 SEC , 2 Section 41204.1 -of, the-:Education .`Code is I 16 :amended to read.• 4120 18 subdiv4.1 (a). (l) I ursuant to paragraph`:, (2) of 1 ision:(b) of Section 41204, the:Director of Finance 19 .. shall annually adjust. "the percentage. of General:Fund 20; revenues appropriated for school distHets and 21 community college districts, respectively, in he 1986-87 f 22 fiscal year°°.for purposes of applying paragraph....(1) of 23 subdivision: .(b) `:of �''>ection 8 of Article{ XVL of the 24 '` California Constitution; .to reflect those :property: tax 25 revenue allocation ` modifications; required by the { 26= amendments: made to, Chapter: 6 commencin with � p � g 27 Section 95) of Part 0.5 of Division 1 of the Revenue and 28 Taxation Code by the aet g geed qualifying 29 provisions, as defined in paragraph (2), in a manner that. 30 ensuresthat: those modifications.will have rio net: fiscal r 31 impact upon the amounts that are otherwise required to 32 :` be applied by the state for the support of school districts 33 and community college.districts pursuant to Section 8 of 34. Article XVI of the California Constitution 35 (2) For purposes of this section, ` `qualifying 36 provisions°'means both of the following, 37 (A) The amendments made to Sections 97.2 and 97.3 38: ofthe Revenue.and Taxation Code by.Chapter 1111,ofthe 39 Statutes of 1.996. 40 (B) Seetion 97.43 of the Revenue and Taxation Code.. 98 - 5 — SB 880 Dose It is the intent of the Legislature e--t Mr. - 2 .adder thisseetiett to ensure.both. of.the following: that (1) That the changes required by the. ftiftg'#his ttion 4 sect qualifying provisions in the allocations of ad Ilion 5 valorem property tax revenues do not.have a, net fiscal year 6 impact upon school"districts, as defined in, accordance =d is 7 with Section 41302.5, or community college districts.. . (D) `8 (2) That the changes required by the a4 1diRg Mian 9 geP qualifying provisions in ,,the allocations of ad sect 10 valorem property. tax revenues do not have a net fiscal it to T1 impact upon the amounts of revenue otherwise_required sols, 12 . to be applied bythe tatefor the support of school districts 'lege13 and community college districts'pursuant to.Section'8 of 14 Article XVI`of the California Constitution:_ le is 15 SEC 3. Section 97.2 of. the Revenue and Taxation' 16 Code is amended to read. of 17 97.2. l�otwithstanding any , other provision of .this ince 18' chapters the computations and allocations made by.each and 19 county pursuant to Section 96.1 or its predecessor.section and 20 - shall.be modified for.the 1992-93 fiscal year pursuant. to 3-87 ") 21 . ;subdivisions (a). to (d)- inclusive, and for the 1997-98 and C): Of 221. 1998-99-.fiscal years pursuant to subdivision (e); as follows: the" ` 2�3 (a) (1) Except,.as provided in paragraph (2), the ; tax 24' amount of property tax revenue deemed allocated'in the the "01025prior fiscal year to each-county shall be to by the ;with 2fi . .dollar amounts indicated as follows;multiplied by :953649: . and 27 wing 28 Property that. 29 Tax Reduction �sCal 30 per County d to " 31 Alameda .. . . . $ 27;323;576 cicts 32 Alpine 5,169 8 of 33 Aniador : . . . . 286;131 34 Butte 846,452 ring 35 Calaveras 507,526 36 Colusa . . . . . . . . . . .. 186,438 1 0 97.3 37 Contra Costa : . 2,5 4,3 18 "fhe 38 Del Norte . . . 46,523 _ 39 El Dorado . . . . . . : . 1,544;590 4(} Fresno 5,387;570 98 98 SB 8$Q 6 — 1 Glenn . 378,055 f 2 Humboldt . . . . . . . . . . . . . . . . . . . . . 1,084,968 ¢ 1„ 3Imperial . . . . .... . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . .. . 998,222 ! 4 Inyo . . : . : . . • . 366,402 6;907;282 . �i 5 Kern . . . . . . . . . . . . . +; 6 Kings 1;303;774 7 Lake . . 998;222 8 93Lassen . : . . . . . 045 . 9 Los Angeles . . . . . . . . . . . . . . . . . . . . . 244;178,806 as . Madera : . . . . . . 809,194 -11 . Marro . . . . ... . . . . . . . . . . . . .. . 3,902,258 �i 12 Mariposa 40,136 13 Mendoena L004,112 14 Merced . 2;445,709 �; 15 1Vlodoc 134,650 �! 16 Mono 319 793 17 Monterey, . . . . . . . 2,5I9,507 18 ° Napa . . . . . . . ... . . . . . .. . 1,362;036 19 . Nevada . . . . 762,585 (` 20Orange 9,900,654 I l 21 Placer . . 1;991;265 s 22 "Plumas 23 ;Riverside : 7375,353 i� 24 Sacramento 15;323,634 25 San Benita198,490 ' 26:. San Bernardino . . . 14;467,099 ,I 27 San Diego 17,687,776 2$ San Francisco 53;266;991' 29 San Joaquin 8,574;869 r <� �xtr 30 San Luis Obispo 2,547;990. ! 31r Sari 1Vlate6 7;979,302 32 Santa Barbara 4;411,812 �; 33 Santa.Clara 20;103,706 34 Santa Cruz 1,416,413 I f . . . . . . . . . . . . . 1o9s,46s 35. Shasta :. , . _. 36 Sierra. . 97,103 �� 37 Siskiyou . . 467,390 Ii .. 38 Solaro. : 5;378;048 39 Sonoma 5;455,911 98 - 7 — SB 880 378,055 1 Stanislaus . . . . . . . . . . , 2;242,129 .,084,968 998,222 2` Sutter . . . . . . . . . . . . . . . 831,204 '366,402 3 Tehama . ., . . . . ... . . . .. .. .. . . . . . . . . . . . . . .. . . . 450,559 ►,907;282 4 Trinity. .. . . : . . . . . . 50,399 ,303;774 5 Tulare . . . . . . . . . . . . . . . . . . . . . . . . . . 4,228,525 998;222 6 Tuolumne 740,574 64, 93;045 7 Ventura . . . . . . ... . . . . . 9;412,547 .,178,806 8 .' Yoko . . . . . . . . . . . . . . . 1,86.0,499 809,194 9 Yuba .. . 842,857 ,902;25$ 10 40,136 11 (2) Notwithstanding paragraph (1) , the amount of the ,pp4y112 12 reduction specified in:that paragraph for any county or ,445,709: .13 city and county that has been materially and substantially 134,650 14 `:im.pactedas az result of- a federally declared';disaster;.as 319,793 i5 evidenced by at least 20 percent:of the cities, or cities nd 519,507 16 . unincorporated ureas of the county representing ..20 362,035 : 17 percent of the population within: the county uffering. 7623585 18 substantial :damage as certified by the Director' of the. 900,84 19" (Office of Emergency Services, occurring between 991,265 j;: 20 October 1, 1989, and the effective date of this section;shall 71,07& 21 be :reduced .by that portion of :five 'million dollars 575,353 22 ($5,000,000) .determined for, that county, or city and 323;634 23 county:pursuant.to subparagraph '(B) of paragraph (3).. 198;090` i0 24 (3) : On or before October 1, 1992; the Director of 467;099 - 25 Finance shall;:do'all,of ahe following: 687,776 { 26 f (A-) `Determine the population.of_each county and city, 266,gg 27 and county : r which a federally declared,'disaster has 574;869 . 28 occurred between October:l, 1989, and the effective date 547,990 29 of this section, 979,302: 30 (B) Determine for each county and city and county as 411,812 . 31, described in'subparagraph (A) its share of five million 103,706., 32. dollars ($5,000,000) on the basis of that county s 116,413 33 populatiori relative to;the total population.of all:counties X96,458 ! 34 described in subparagraph (A) . 87,103 35 (C} Notify each auditor of each county and., city and 167,390 36 county of ' the . amounts determined pursuant to 11 378,048 .37 subparagraph 155,911 38 (b) (1) Except as provided in paragraph (2) , the 39 amount of property tax revenue deemed allocated in the 40 ` prior fiscal year to each city, except for a. newly- 98 98 i SB 880 .- 8 - 1 - 8 - 1 incorporated city that did not receive property tax I 2 revenues.in the 1991-92 fiscal year, shall be reduced by 9 3 percent. In making the above computation with respect 4 . :to cities in.Alameda.County, the computation for a city 5 described in paragraph (6). of.subdivision (a). of Section 6 100.7, as added by -Sec:tion 73.5 of Chapter 323 of the 7 Statutes of '1983; ..shall be. adjusted so that the amount 8 multiplied by 9 percent is reduced by the amount 9 determined for that, city for "museums" pursuant o 10 paragraph (2) of subdivision (h) of.Section 95 Notwithstanding paragraph (1), the amount of the 12 :determinedpursuant tot paragraph for any 7 13 cit h t at has been xnAeriall and substantialI impacted Y Y Y p 14 as a result of a federally.declared disaster; as certified by „I 15 " the Director ; of the, _Office of Emergency Services; 16 occurring between October 1, ` 1989; and the .effective I, 17 date 'of this section, shall be reduced by:that portion 'of" 18 fifteen million dollars 15 000 000) determined for that ($ j� 19 city pursuantto"subparagraph (B) �of paragraph. (3) 20. (3) On forbefore'.October 1," 1992, ,the. Director of 2. Finance shall do all o f the following: 22 (A) Determine ahe population oft each city in which`a 23 federally declared disaster" has occurred between 24 October T, 1989, acid the effective dateof this section. 25 B. Determine for_ 0 each' cit ( ) y; , as described " in 26 _. sub ara rah A its share of fifteen million,�dollars. P.; g P ( ): 27 (`$15;000,000),on the basis of`that city's population relative 28 to the . total ." population. of all cities described in " "subparagraph`;(A).. 30 '(C). Notify each.auditor of each "county and city and 31" county of the amounts determined,. pursuant to ara 32 sub raph B ip g ( ) 33 4 In.'the.: 1992-93 ascal O year and each fiscal year 34 thereafter the "auditor 'shall :adjust the computations ' 35 re" uireId ursuant to Article 4 commencin q P ( g with Section 36 98): So what those Corn.putations do not result in . the 37 restoration oft,redLiction required pursuant to this 38 section. 39 (c)' .(1) Subject` to , paragraph (2) , the amount of 40 :property tax revenue, other than those revenues that area r 98 I ' — 9 — SB 880 1 pledged to debt service, deemed allocated in the prior ty tax 2 fiscal year to a:special district, other.than a multicounty 'd by 9 3 district, a''local hospital:district, or a district governed by espect 4 a city council'or whose governing board has the same. a city .as a city council; shall be reduced by 35 section 6 percent. Forpurposes of this subdivision, ``revenues that of.the- „ . 7 are pledged to debt service include only those .amounts mount 8 required to` a debt service costs in the 1991-92 fiscal mount q P .Y 9 . year on debt instruments issued by a special district for ant to 10 the acquisition of capital:assets r of the 11 (2) `No reduction pursuant to paragraph (l) for any , `or an 12 `. :Special istrict, of er t an a "countywi e :water agency y 13 that does not sell water at retail, shall exceed an amount taacted : 14` equal to 10 percent of that district's'total annual revenues, ied by 15 from whatever source, as`shown in`the 1989-90 `edition of rvices, 16 the State Controller's :Report on Financial Transactions fective 17.; Concernin S ecial Districts not including- an annual tion of g p (. g Y 18 revenues from' fiscal years following°the_ 1989..90: fiscal . ar that 19`' year) . 'With:,,respect. to :any apecal district, as defined 3)' 2Q` pursuant tosubdivision (m) of Section 95, that is allocated: ,tor of a: 21pr6perty tax revenue pursuant to this chapter:but does 3hich a 22 not appear in the State Controller's'Report on Financial 23 Transactions Concerning Special Districts, the auditor aween 24` .shall determine the_total annual revenues for that:special don m 25 district from the'mformation in the 1989 90 edition:of the . dollars 26 State Controllers :Report 'on : Financial Transactions 27 Concerning Counties. With respect to a- special_district elative 28' that did not exist .in ahe '1989-90 fiscal year,, ,the auditor led.:, .in _ . 29 may use ,information from the first full fiscalYear, as 30 appropriate, to determine the total annual revenues for ty.:and 31 .tliat:special district.lVo reduction pursuant to paragraph .nt . to 32 . '(1) .for'any countywide water agency that does not sell 33 water at retail shall exceed an amount:equal to 10 percent J year : tations .. 34 ' 0£ hatportion of that agency's'general fund derived from vection '35 . property tax revenues 36 (3) The 'auditor-in ,each. county shall, on or before in the 37 January-15: 1993 and on or�before January 30 of each year to this J y ' 38 .thereafter, submit information to the Controller ant of 39 concerning the amount of the property tax 'revenue .iat are ,;,� . 40 reduction to each special district within that county as a 98 98 SB 880 — 10 1 result of paragraphs: (1) and (2) . The Controller shall r t 2 certify that the calculation of the .property tax revenue 3 'reduction to ..each special district within that`, county is 4 accurate and,correct, and submit this information to the 5 Director of Finance. 6 (A) The Director of Finance shall determine whether 7 the .total of the amounts of the, property .tax revenue 'special districts as certified b . the 8 reductions toY 9 'Controller,is equal to.the amount.that would be required 10 to be allocated to_school districts and community college q 11 districts as a result of a thiree,hundred seventy-five million 12, dollar`($375;000,000} shift of property tax revenues from „ 13 specia , trios for>;the 1992-93 f seal:year If, for any year,t., 14 the total: of ahe, amount 'of the property tax revenue { 15 reductions.to special districts is less'than the: amount as 1� described in he preceding. sentence,, the amount of 17 property tax.revenue, other than those revenues that are 18 pledged_to debt serviced 'deemed allocated in the prior 19 fiscal . ear; . .o.a-. ecial district other than a multicount Y P, Y 20 district, a local hospital district, ora`district governed by 21 a. city :council ;or whose governing board :has the :.same k 22 . meiAbership as ,a city council, shall, subject to 23 subparagraph,: (B} , be ,reduced>by an amount up to. 5 24 percent of ;the amount ,subject to reduction for :that 25 district pursuant to' paragraphs (1) and (2),.,: 1 r 26 (B) No reduction>pursuant to subparagraph. (AY in 27 conjunction with<a reduction>pursuant to`paragraphs (1) 28 and (2), for any special district,,other than a counaywide 29 water ,agency that' does not sell` water; at retail; shall eyxt> 30 exceed an amount equal to .10..percent. of that .district.s ` 31 total"annual revenues,from whatever source;`as shown in 32 tb.6.' recent State Controller's Report on Financial y 33 Transactions Concerning Special Districts., No reduction 34 pursuant to .subparagraph (A-} in, conjunction. 'with a i rs ant to ara ra hs1 and �2 for :an 35 reduct on pu u p g p O O, Y, 36 countywide.water agenc�T that nofi sell water at retail 37 shall exceed an amount equal to 10 percent of that p' . - 38 of that-agency's general:fund derived from,property tax 39 revenues. 98 - 11 — SB 880 shall venue 1.` (C) In no event shall the,-amount.of the property tax my is 2 revenue loss to 'a special district .derived pursuant to t the` 3. subparagraphs (A) and (B) exceed 40 percent: of that .4 districts property tax revenues or 10 percent of that nether .5 district's total.revenues, from. whatever: source. venue 6 (4) For the purpose of determining the. total annual v . the7 revenues.of a special.district that.provides fire protection luired 8 or:fire suppression `services, all of the following shall be ollege 9 excluded from the determination' .of total.. annual iillon 10 'revenues: 11 A If .the district: had less than two million dollars from ( , ) , year : 12 : ($2,000 Q00)::in total.annual revenues ihtha 199.1-92 fiscal venue 13 year, the . revenue generated 'by: a fire, suppression 14 assessment levied ursuant to-Article 3:6 (commencing -int as, p ( g 15 with Section 50078 of Cha ter;l of Part l of Division_ 1 of mt of p at are 16 Title 5 oft :Government Code prior _ 17 . (B) Any appropriation,tor fire protection received by ounty. 18 a district pursuant to' Section 25642 of the `Government ed.b 19 Code . y ` T 20 C The revenue received b a district as a result of same ( ) v- 21 ' contracts entered.into ursuant' to Section 4133 of. the At to p to 5 22 ' Public.Resources C6 de that ` 23 (5) For the..purpose of determining the total annual 24 revenues of a resource conservation district, all of the . m 25 ; following shall be excluded .from the 'determination of tiS: (l) 26 ,total..annual revenues: ✓wide Any revenues received by that,district from the shall 28 ' state for financing �the ; acquisition of land, : or the trio's . . 29 construction or:improvement of state projects; and :for wn m'. 30 . which that district serves as the fiscal agent it uncial 31 administering those state funds pursuant to an agreement iction ' 32 . entered into between'that,district and a state agency: pith a ' A 33 -(B) Any amount received by that district,as a-private: r .an 34 ; gift.or,donation. Y_ retail 35- (C) Any.amount received as a county grant or contract �rtion 36 as supplemental to,..:or independent of, that district's ty tax 37 property tax share. 38 (D) Any amount received by that district as a federal , r39 : or state,`grant. 98 98 E SB 880 1 d 1 The amount of property tax revenues not (_1 .'2 allocated to the county, cities within, the county, and ,- 3 special districts as a result of the reductions calculated 4 pursuant to subdivisions (a) , (b), and (c) shall instead be 5 deposited in the Educational Revenue. Augmentation 6 Fund to be established in each county. The amount of , 7 revenue in the Educational. Revenue Augmentation 8. Fund, derived from whatever source, shall;be allocated 9 ; (3).to school districts-and .pursuant o. ara ra hs (2) and to county offices of education, jin total;,and to community 11, college districts,: in total, in the same proportion that 12 property tax revenues were distributed to school districts 13 and county;offices of education; in.total;, an community _ 14 college.districts; in total;. durii g the 1991 92 fiscal year. 15 (2) The,auditor shall, based on information-!provided 16 by. the county,superint:endent of schools pursuant to this 17 paragraph, .allocate the proportion 'of the Educational 18 Revenue, Augmentation Fund to those school,,districts 19 and county offices of education within the county that are 20not excess taxschooI-entit es,as defined in subdivision (n) : 21 of Section 95.'The-county superintendent of schools shall i 22 determine the � amount to be allocated to'each school . 23 district and county office of education, :in inverse 24 :: proportion to. the amounts'of property ,tax revenue per 25 .average daily, attendance in-. each school district and 26 county office of education. In no event shall any 27:1, additional.money'be allocated. from the fund to a school 28 district or county office of education upon that school '11� 29 district or county office of education becoming an excess 30 tax .school entity 31 , (3) The:auditor shall, based on information provided jG ; 32 by the Chancellor of the California.Community Colleges 33 pursuant to.this paragraph, allocate the proportion.of the 37 34.' Educational Revenue Augmentation Fund to those ' 35 community coilege'districts within the county that are 36 not excess tax school eni.ites, as defined in suladivision (n) ' -.37-:1of Section95. The chancellor shall determine the amount f 38. to be allocated to each community college district in 39 inverse proportion to the amounts of property . tax 40 revenue per funded full-time equivalent student in each 'i ss } - 13 — SB .880 . s not 1 community college. ;district.. In no event shall . any and 2 additional money be :allocated from the fund to a lated . 3 .community college district,-upon that district.becoming -ad be 4 ` an, excess tax school entity. anon ed (4) (A) If; after making the allocation required nt of 6 pursuant to paragraph. (2),the...the. auditor I determines that ation 7 there are still additional funds to be allocated, the auditor .ated . 8 shall allocate those:.excess funds pursuant: to. paragraph s.and -9 (3). If,after making the allocation.pursuant to paragraph unity 10 (3) , the auditor determines that there are still additional that 11 funds to be allocated, ahe auditor shall allocate those tricts ` 12 excess .fiirids:purstiarit.to;paragraph (2) anity 13. (B) : (i) For the:1995-96 fis.eet.1 yefff a eaeh fise4l ye f . ear 14 `�eiea ft an 199 '97"fiscal years only, if, _after making -Tided 15 the ,allocations ursuant:ao: pa r hs (2) . and (3)'. and . p p g P this: 16 subparagraph.:(A);the,auditordeiermines that there are Tonal 17 still :additional funds to -be allocated, the ,auditor shall; tricts 18 sub'ect to:clauses a and. (iii) allocate those excess funds (••) ( i ), It are 19 to the county superintendent of.schools Funds allocated. 20 ursuant to this sub paragra h shall be: counted as Z (.n) p p . p shallKN - 21 property tax revenues for.special,education programs in �hool 22 augmentation `of...the amount calculated `pursuant to: -Terse 23 ,.♦Section 2572 of;:the Education Code; to the :extent that per 24 those property.-tax revenues offset state.-aid for county 0 and 25 offices of education:and.school..districts.within the count any 26 . pursuantto Section 5.6712 of the.Education Code: _hoof 27 (ii) .For the 1995-96.fisc ail year only,, this'subparagraph .�hool 28., shall have no application to the County of Mono and the xcess: 29 amount allocated pursuant ,to this subparagraph in: the .30 County of Marin shall not exceed five million 'dollars -ided 31 ($5,000,000) . Leges 32 (iii) For the 1996--97 fiscal year only, the total amount .f the 33 of funds allocated. by the auditor pursuant to. .this` :hose � 34 subparagraph grid subparagraph (B) of paragraph (4) of. tare 35 subdivision: (d) of :Section 97.3 -shall not :exceed that .1 (n) 36 portion of .two million.; five hundred thousand dollars ount 37 ($21,500,000) . that corresponds to the- county s,. ct in 38 proportionate share of;all`moneys allocated pursuant`fo tax. 39 this subparagraph and subparagraph: (B) of paragraph each 40 (4) of subdivision: (d)' of Section 97.3 for the 1995-96 fiscal 98 : 98 . r ; r 9; SB 880 14 ear. U on the request of the auditor, the De ar 1 y p g p tment of 2 Finance shall provide,to the auditor. all information in the 3. department's possession that is.:necessary,for: the:-auditor ` 4 to comply.with this clause. 5 e€ the 7 meal yeaf 49 6re�tfter, the;mer , aft6i ffiakjitg eke alleeatie gp ea, „t: .`}€ S - 10 refflaint fUREIS aeX For the 1997 9f'. -fiscal,year.and each.f scat year. 12 thereafter, Y. after rna.k' the allocations pursuant to 13 paragraphs (2) and (3) and subparagraph,.: 14 auditor.determines that`there are still ad hhonal.funds to 15 be. allocated, the auditor .shall;:pursuant to; a written. 16 agreement=between the board. of.supervisors and the 17 county uperintendent of schools with respect. o the ,. 18 -:funding, of pedal education programs, allocate all 19 remaining funds as follows:'. . 20 (1) Among the county, cities; and special :districts.in " 21 proportion to :the `amounts. of ad valorem :property tax >22 revenue otherwise.reg tined to`b.e shifted from those local. 23 agencies to ' the .. aunty's Educational Revenue 24 Augrnentation'.,Tund for:.the relevant fiscal year 25 (ii) To the._.county superintendent of schools. The N3. 26 amount allocated urs t to'this subparagraph shall not 27 offset state aid for special'-education;programs for county 28 off ces=ofeducation and'scho61 districts within the county. 29 ,pursuant to Section 56112 of the:Education Code or:ariy 30 other section of law F. 31 For purposes.. of .ad valorem' property tax revenue 32 allocations:for the'1997=-98 fiseal.year'and each fiscal year. 33 thereafter, nq. .amours of ad valorem- property tax 34 revenue allocatede ;: e e 35 pursuant `to this subparagraph to the. county, a >city' a f 36 special district, or the oounty superintendent of schools E 37 shall be deemed o be an amount of ad valorem properly 38 tax revenue allocated to that Jeeag;ee jurisdiction in 4 39 the:prior fiscal year. . 98, . — 15 _ SB 880 1 (5) For purposes . of allocations made pursuant. to Of : - 2 Section 96.1 `or its predecessor section for the 1993-94 he .3 fiscal year, the amounts allocated from the Educational .or 4 Revenue Augmentation Fund pursuant to this 5 subdivision, other than amounts deposited in the ta4 6 Educational Revenue Augmentation. Fund pursuant to f 7 Section 33681 of the Health and Safety Code; shall be =;eT- 8 deemed property ` tax revenue allocated to the 9Educational Revenue Augmentation Fund in the prior a 10 fiscal year. 11 (e) (1) For the 1997..-98.fiscal year gar.: 12 A The amount of property tax revenue; deemed O - P . p Y to 13: :allocated in.the prior fiscal year to any city subject 10 the 14 reduction specified in paragraph (2) of subdivision (b): to.. 15 shall be reduced lby an amount :that is equal to the on ., 16` difference between the amount determined for the city. he 17 pursuant to paragraph (1) of subdivision (b) and the he; 18 amount of the reduction determined for the city pursuant`. X11 19 to paragraph, (2) of subdivision (b) 20. (B) "The: amount of property tax revenue deemed in 21 allocated in theprior fiscal.year to any county or city and ax 22 : county ,subject to the reduction specified in paragraph gal 23 (2) of subdivision "(a) :shall be reduced by an amount.that ue: 24 is equal to the difference between the amount specified 25 for:the county or�city and:county pursuant o paragraph . he 26 (1) of subdivision (a) and the amount of the reduction 'ot : 27 . determined for the county or city.and county pursuant.to tY: 28 ara ra h 2 of subdivision a P g p O ( ) t Y 29 :. (2) The.amount�of property tax revenues not allocated ny 30 toga city or city,and-:county as a result of this subdivision 31 shall be : : deposited. : in the Educational . Revenue '-fie.::. 32 Augmentation Fund- described in subparagraph `.(A) '.of. ar:° 33paragraph (l)--of subdivision. (d) ax 15 . .Se 4 (3) ,For ,-"purposes. of: allocations made pursuant 'to . ction 96.1 for the 1.99$--99 fiscal" year, the amounts. a6'36; an llocated from the Educational Revenue Augmentation' . FIs 37 Fund . pursuant to this . subdivision shall be deemed ty 38 property. tax :revenues allocated to the Educational in 39,,. Revenue Augmentation Fund in the:prior fiscal year. 98 98. z SB 880 — 16 — (f) - 16{f} it is the intent`of the Legislature in enacting this ,2 section that this section supersede and` be operative in, 3 place of Section 97.03 of the Revenue and Taxation Code, 4 as added by Senate Bill 617 of the 199.1-92 Regular.Session. 5 SEG. Pr 6 SEC` 4. .,Section'':97.3 of the . Revenue and Taxation 7 Code is amended to read: y :197.3. Notwithstanding any other provision :of this 9 chapter; the computations and allocations made by each 10_ county pursuant to.Sec'tion 96.1`or its p"redecessor section; 11 as modified;by Section 97:2 or its predecessor section for 12 the 1992-93 fiscal year, shall be modlded for the "1993-94 I3 fiscal year pursuant to subcl�vsons {a} ixiclusive, 14 as follows I5 a The amount of :.property tax revenue deemed .) I6 allocated in ahe rior,fiscal ear"to. each count and cit p. Y Y Y 17 :`and;, counY t shall.: be `reduced .by an amount to be 18 determined by the _Director 'of Finance in, accordance 19 with the following 20 (1} The total amount of property tax reduetons'for 21 counties;.andcities and counties determined pursuant to: rc 22 :;this section shall be one billion nine"hundred ninety-eight 23 million dollars {$1,998;000;000)�. n the 1993-94 fiscal year: 24 {2} -The Director of Finance shall determine '.the 25 - amount of: the reduction for'°each county, or city ;and „ 26 county as follows: 27 {A} ;The proportionate share of the property tax 28 revenue:reduction for each county`or city and county that. 29 :vvoiuld have been: imposed on all counties under the proposal specified in `the "May Revision of the' 1993=94 Governor's Budget" shall be determined by reference to T l. 32 the document entitled Estimated Coun Fro est `Tax tY p - Y " 33 Transfers, Under Governor's;. May Revision Proposals 34 published by the-Legislative Analyst's (Jffice on June 1, jz 35 :199.3. 36 ° (B} Each county's}or city and county's proportionate 37 share-of total.taxable :s-iles in-all counties in the 1991. 92 38 ;fiscal year shall be determined: 39` C An amount" �`or ,ach :caunty`and city and county . {. ) �, 40 shall be`determined by applying its proposdonate share 98. . = 17 SB 880 -his 1 determined pursuantto. subparagraph (A),-.46. the, one in 2 billion nine hundred ninety-eight million dollar ($1,998;000;000) statewide reduction. 'for. counties and �n. A cities and counties. : 5 (D) An:amount for.each county and city and county ;on 6 shah be determined by applying its proportionate share 7 determined pursuant to subparagraph (B) .to the :one liis :8billion nine hundred.> . ninety-eight million Bollar .ch 19 ' ($1,998,000.,000) statewide reduction for counties and 10 cities and counties For 11 . (E) The .:Director of Finance shall add the, amounts 12 determined: ursuant to sub ara ahs C ;and D for 94 p P p ( ) ( ) _ ve 13 . each county,and city:and county,and divide:the resulting 14> figure;by two.The amount so=determined for each county ed 15 and cit and coun shah.be divided b a factor of.1038 Y county. Y ity 16 The-resulting.figure shall be:the amount of.property tax be 17 reweriue to.be subtracted from the amount of propertytax : ,ce 18 revenue deemed allocated in the tprior fiscal year 19 (3) The Director of Finance shall, :by"July 15, 1993, core 20 report to the Joint Legislative Budget `.Committee. its to: 21 determination of the amounts determined: pursuant to . 22 paragraph (2) ar. 23 (4) ,On or before August ,:15, 1993,„ the Director of he, r 24' : Finance shall notifythe,'auditor of each coon and ci t3': t3' nd 25 and county of the� amount..,:of. property tax revenue ; :26 reduc 'on determined for. each. coon and ci and ti ax 27 county: zat : 28 (5) . Notwithstanding any :, other` provision ,: of this ne 29 subdivision; the amount of`the reduction' specified in 94 30 paragraph';(-2): for any countypr city and cc tythat has to 31 first . implemented, for the 1993-94 fiscal year, the 'ax 32 alternative procedure for he distribution of.property tax levies.. :authorized by Chapter 2; (comrr�encing with` 1; 34, Section 4701) of Part>8 shall be reduced, for the-1993-94 a 35 fiscal year only; in the amount of any;increased revenue ate 36 allocated,to each qualifying school entity that-would:not .92 37 have beenllocaied for.the 1993-94 discal year but for,the 38 Amof that alternative.: procedure For. Ity 39 purposes of this paragraph "qualifying .school entity" ire 40 means any school district, county office of education, or 98 I SB 880 18 — 1 community college district that is not an excess tax school 2 .entit as defined.in Section .95.1. Notwithstanding andmg any 3 other provision of this ;paragraph, the amount of.any 4 reduction calculated` pursuant -to this paragraph for any 5 :' county or city and county shall not exceed the reduction 6 calculated for that.county or city and county pursuant to 7 paragraph: 8 -(b). The amount, of :property . tax revenue. deemed 9 allocated in the prior fiscal.. year to each city shall be 10 reduced by.an amount to'be determined by the Director 11 of Finance in accordance with the following 12 (1) The total amount of the property 4dx reductions 13 determined for cities pursuant to this;section shall be two 14 hundred eight m ;00ii the, ; 15 :.1993-94 fiscal year. 16 (2) The : Director of Finance shall . 'determine the 17 amount of reduction for each.city as-follows.. 18 (A) .The., amount of property _tax revenue . that.. is 19 estimated to-be attributable in the 1993 :94 fiscal year. to 20 the , amount. bf each :city's state assistance payment. 21 received bY that city pursuant to' Chapter 282 of the' s a 22a St of:1979"shall.be determined. , 23 (B) '`A factor for,:. each city, equal to the amount q.24 determined pursuant to.subparagraph (A). for ;that city,' 25divided by;the'total.of the amounts determined:pursuant: 3 26 to subparagraph (A) for all cities, shall be determined . 27 (C)' :An: 'amount for each city equal to the factor 28determined pursuant to subparagraph (B) multiplied by 29 three hundred eighty-two million five hundred thousand 30 dollars ($382,500Q00) shall be determined. 31 (D) In no event shall the amount ;for any city 32. determined pursuant to subparagraph. (C); exceed'a per 33 , capita amount: of nineteien..dollars rand.thirty-one cents 34 ($19.31), .as .determined 'in accordance with Ghat cit y,'s 35 , p.opulation. on January 1, 1993; as estimated b . the Y 36 Department of Finance. 371 The amount determined for each city pursuant to 38 subparagraphs (C): and (D) shall be -the amount of 39 property tax revenue to be subtracted from the amount, . 98 - 19 -- SB 880 loot any T of property tax revenue deemed allocated in the prior any 2 year. any 3 (3) The Director of Finance shall, by July 15, 1993; 4': re ort to. the Joint Legislative Bud et' Committee those tion ` . p � � g� g !t to 5 amounts determined. pursuant toparagraph,(2) . 60 On . or ..before, August 15; 1993, the Director of ned 7 Finance shall notify,each county:auditor of the amount of be Iproperty tax revenue reduction determined for each.city motor : 9 located withinthat county 10 c 1 The amount of ro ert tax.revenue deemed { } { } p . p y +ons 11 -allocated iri the prior fiscal year to eachspecial district, as two 12 defined pursuant to subdivision (m} of.Section 95,shall be the 13 „ reduced -by the, amount `determined for the district T4 pursuant to paragraph {3} and increased:by the amount 15 determined for the district : ursuarit to` ara rah 4 the p P g p O 16 The otat,,net amount of these changes ;is :intended to t :is I7 equal two hundred: forty-four million dollars r. to '18, ($244,000,000)' in.the 1993"94,fiscal year. gent 19 (2)' (A} Notyvithstandmg :any other provision of this the -: p 2Q subdivision, no reduction shall be made ursuant to this °� 21, :subdivision with :respect to' any' of the:following special ,unt 22 districts . pit 23 i A local hos rtal district as described m Division'23 y, { } p` rant `0. ,` . 24 (.commencing with Section; 32000} of the Health and 25 .;Safet Cotte. y motor. 26 (u}, AA water.agency that does not eh water at.retail; by 27 but not including an agency :the primary function of and 28 which; as 406 rm' medlooin,the:basis of total revenues; is 29 flood'control ` iii A trans city 30 { > it.district per 3l (iv) A police protection district formed;pursuant to ruts 32 Part 1 (commencing with Sectxon'.20000) of Division 14:,' _f ity s : e j . .:33, lth the Heaand Safety :Code:: the' 34 (v) A special .district that was a multcounty special '86` district as of JuIY 1979.: It to 36 .: (B}: Notwithstanding any :other provision of: this t of 37 ubdivison,.the: first one hundred.four thousand dollars aunt 38 {$104,000):of.:the amount ofAny re ductionaliat otherwise 39. would:be made under this subdivision:with respect to'a r- .3 40 u. lif In communit services district shall be excluded: - q Y� g Y 98 98 SB 880 — 20 — For - 20For purposes of thin subparagraph, a qualifying r" . 2 community services district" means a community service . 3 district.that meets all of the following requirements: 4 (i). Was formed pursuant to Division 3 , (commencing 5 with Section 61000) of Title .6 of the Government Code. 6 (ii) .Succeeded to the duties and properties of a police 7 .protection:.district upon the dissolution;of that district. 8 (iii) Currently provides police protection services to 9. substantially the .same territory as did that district. 10. (iv) Is located within a county in which the board, of 11 supervisors has requested the Department of 'Finance 12 that this-.sub atagraph be operative in the county. :: , 13 (3) {A)' On or.before September 15, 1993, the`county 14 auditor ,shall :determine an amount for each special 15 district equal to the.amount of its allocation determined 16 pursuant to Section 96 or 96.1, and Section 96:5' or their 17 predecessor'sections for the 1993-94 fiscal year multiplied 18 by the. ratio determined ,pursuant, to paragraph '(.1) of 19 subdivision (a) of former Section 98.6as that section read 20on June J51993 In those counties that were subject to 'r 2 form r c ions• 9 8:66 1 ';.former e Set 8 , 98:67,. and 98.68, as those sections 22 .,read on that same , ,date, the county . auditor ; shall 23. determine .an amount :for , each ;special -:district that = 24 .represents the current amount of; its all 25 determined ;pursuant:to.Section 96 or 96:1, and Section . 26 : 96.5 or heir predecessor sections for the 1993-94 fiscal 27 year,`that 1s.' attributed to the property tax shifts from 28 schools required by Chapter 2$2 of the Statutes of 1979: 29 1n that county subject to Section 100.4,the county.auditor : 30 shail`;determine an amount for' each special district that 31represents the current amount of its allocations 32 "determined pursuant to Section 96, 96.1 -96 5 or 140:4 or 33 their predecessor,sections for the 199$ 94 fiscal year that 34 is attributable. to the property tax shift from schools 35 required by Chapter 282 of the Statutes of '19.79. :In 36 determining these amounts, the county. auditor shall 37 adjust for: the influence of increased assessed valuation 38 wit in district, including he effect of jurisdictional 39 changes, and the:reductoxis in property tax allocations 40 required in:the .1992-93 fiscal year by Chapters 699 and ,'.. 98 F R r. — 21 SB 880 N ng 1369 of the:Statutes of 1992. In the case of a'special district ice . 2 that has been consolidated or reorganized, the auditor 3 shall determine 'the -.amount of its-current property tax ng 4 allocation that is attributable to the prior district's or ie. 5 districts' receipt of state assistance payments pursuant to Ice 6 Chapter'282 of the Statutes of:1979. Notwithstanding any 7 other provision of this paragraph, for a special district that to 8 is governed by a city council or. whose governing board 9 has the same membership. as a city council and that is a .of 10 subsidiary.district as defined in subdivision �(e) of Section .ce 11 16271 of the Government,Code,:.the county auditor.shall -12 multiply the amount that otherwise would-be calculated tty l3 pursuant to this paragraph by 0:38 and the result shall be ial 14 . used in he calculations required.by paragraph (5) . In ho _ed 15 event shall the amoaragraphbe unt:determined by this p : eir. 16 less han zero ed 17 _ (B) Notwithstandin 's.ub ara raph (A) commencing of - 1.8 wth`the 1994-95 fiscal year,in the.County.of.Sacramento, ad 19 the auditor shall determine the amount for.each special to 20 district . that 'represents the current amount . of ;its ins 21 allocations determined pursuant to Section 96, 96.1,:,96.5l fall 22 . or 1W6 for the. 1994-95 fiscal year thatattributedto is the iat 23 property tax: shift from schools:required by-Chapter 282 on x 24 . of the Statutes of 1979. ..on 25 (4) (A) On or before September 15,:1993, the county 26 auditor shall determine an a calmount for :each special �m 27 district that isl engaged in fire protection activities, as 79. . 28 reported to the Controller for inclusion in the 1989-90 for 29 Edition of the:Financial Transactions`Report Concerning nat 30 Special Districts under-the heading of"Fire Protection, ins 31 ' that.is equal:to the. amount of revenue allocated to that or : 32 . special district from the Special District Augmentation :lat 33 .. Fund,-for fire::protection activities in the 1992=93 fiscal os ° _� 34 year. In the case of a special district,.other than`a special Iri 35 district governed., by.the county. board of supervisors or 36 whose overnin body is the same as the county board of call g g y ion 37 supervisors, that is engaged in fire protection activities as 38 reported to the Controller, the..county auditor'shall ,also real p , ins ,.. 39 determine the: amount by which �the district's. amount nd 40. determined pursuant to paragraph` (3) exceeds : the 98 98 SB 880 — 22 — I - 22 -1 amount by_ which its allocation was reduced by operation +. P , 2 of former Section 98:6 in the 1992-93 `fiscal :year: This F 3 amount shall be added to the amount otherwise 4 determined for the' ,distrct under this paragraph. In any 5 county subject. toformer Section. 98.-65, ,98.66,,.98.673 or . 6 98.68 in that,same fiscal. year, the county, auditor ,shall 7 determine:for, each special district that is engaged in fire 8 'protection activities . ail amount_ that is e ual to the 9 . amount determined for that district pursuant to 10 paragraph; ,(3) t F'or;purposes;:of.this paragraph, a especial district 12 includes any special district that is allocatedproperty.tax 1.3 revenue pursuant to`this chapter anddoes not appear in 14 the State Controller's Report on Financial Transaction 15 Concerning Special . Districts, ;but is engaged: in fire 16 protection activities and appears in the.State Controller's 17 Report on Financial:Transactions Concerning Counties. 18. (5} ` The total amount of property taxes,allocated to 19 special districts b the count p. y` y auditor as a result of 20 paragraph (4} hall be subtracted from .the amount of 21. ro rrev' p pe ty tax enues not allocated to special districts by 22 the county; auditor. as -a result of ' paragraph (3} to 23; determzne the amount to be deposited in thee,Education ' ' '. ... '-24 , Revenue Augmentation:Fund as specified'in subdivision _ 26 :(6)1 , On ,or before September'-30; 1993; the county 27 auditor shall notify, the `Director of Finance ;of the net y 28 . amount. determined for :special districts pursuant .to 29. paragraph (5) : 30 (d) . (1} Tlie:.amount cif property- tax revenues not 31; allocated to he county, city and county, cities within the 32 county,_and:special districts:as a result>of the reductions 33 required by subdivisions (a); (b) and (c) shall instead be M deposited in the Educational :Revenue :Augmentation . 35 Fund established in .each county .:or city and county 36 pursuant .to Section:97.2.`The amount of revenue in the 37 Educational Revenue Augmentation Fund, derived from 38 whatever , -source, shall be allocated pursuant to 39. paragraphs (2) and (3) 1 to school districts and county 1]j 40 -offices of education,,in total, and: to community college 68 i 23 — SB 880. 1 districts, in total; in the same proportion that property tax 2 revenues were distributed to school,districts and county s .3 offices of education, in total, and community college a 4 districts, in total, during the 1992-93 fiscal year. V 5 (2) The county auditor shall, based on information r 6 provided by the county superintendent of schools l 7 pursuant to,this paragraph, allocate that proportion of the 8 revenue in the" Educational Revenue Augmentation 9 Fund to be allocated to. chool districts and county,offices 10 of education only to those school `districts and county 11offices of education within the county that are not excess t 12 tax school entities, as defined n.subdivision (n) of Section 13 950 The county superintendent of schools shall determine �. 14 the amount to be allocated .to,each school district in 15 inverse 'proportion to the `amounts of property tax 16 revenue per average daily attendance in each school 17 district:. For each county office of education; the 18 allocation:shall'.be made based on;the .historical split of 19 base property`tax revenue, between the county office of 20 education and_,.school �dstriets within the county.: In no 2 event shall any :additional money be allocated from the .22 Educational Revenue Augmentation Fund to a school.. 23 district or county office of education upon that district or i 24 county:offico-of:education becoming an excess;tax school t a� 25 entity: If, after determining the amount to be allocated to 26 ;each school district and county office,of education, the 27 county superintendent of schools determines there are. r 28 ;still additional funds . to be allocated, the` county Y. 29 superintendent of schools shall determine the remainder 30 , to -be.f allocated ininverse proportion to the amounts of ` 31 ro ert - tax .r:evenue :excludin Educational Revenue P . P Y g 32 Augmentation Fund moneys, per average daily 33 attendance in,each remaining school`'distrct, and on the 34 basis of .the historical split descnb`ed above for each'. 35 county office of education, that is not an excess tax school 36 entity. until all funds that would not. result in a school - 37 district or county office of-education becoming an excess. 38 tax school entity are' allocated The county 39 super'intendent:of schools may determine the amounts to 40 be. allocated between each school district and county - I 98 ry SB, 880 _ 24 — office 24 --office of education to ensure that all funds that would not l 2 result. in a school district Or county office of education 3 becoming an excess tax school entity are allocated: 4 t3) ;The county auditor shall, based on information 5 provided by the Cha' ello�- of the California Community 6' Colleges pursuant to this paragraph,. allocate that 7 proportion of the revenue in the Educational Revenue { 8 Augmentation Fund to o:e allocated to community r 9 college districts only,to thosecommunity college districts { 10 within`the?county that are not excess tax school entities, . i 11 as defined m subdivision (.n) of:Section:95 The chancellor shall determine . the amount to be allocated to each 13 ;> community college district In inverse proportion to :the 14 amounts of :property _tax `revenue' per `funded fulltime i 15 = equivalent student n each community"college district. In 7, , no event shall any a dditional,money be allocated from`tlie 17 Educational ' Revenue Augmentation Fund '. to a 18 . commuh ty::college district upon that 'district becoming 19 an excess tax school entity. 20` ` (4} (A) If, after making. the allocation required `4 21 ..Pursuant :to; ara rah 2 , the axditor:determines that P P p } 22 there are still additional funds to be allocated, the`auditor 23 shall allocate those exeess funds pursuant to paragraph 24 '(3) If, after making;the ahlc►cation pursuant to paragraph 25 (3): the auditor determines that there acre still.additiopal 26 funds to be' allocated, the ;auditor shall. allocate those 27 excess funds pursuant `: to paragraph (2). If, after 28 determining the amount to . be allocated to -each �� xzr 29 community college , district, the Chancellor ' of ,the 30 California. Community Colleges determines that there 31 are stilladdtional funds o be allocated, the Chancellor 32 of the California: Community Colleges shall determine 33 the;remander to be ahocat ,4 to each community college 34 districfm inverse proportion to the dinounts of,property TTj 35 tax, re�Tenue; exchiding Educational Revenue 36 Augmentation . Fund moneys, per funded full-time 37 equivalent student iri eaehxemaining community college - ' 38 district that is not an excess-tax school kitityuntil all funds 39 that would not result in a community college district` 40 becoming an excess tax school,entity are allocated 98 25 — SB 880 I 1 (B) (i) For the 1995--96 fiseal yeftf ftffd eeteh f eel year 2 and 199797 fiscal years only, if, after making 3 the allocations pursuant` to paragraphs (2) and .(3), and 4 subparagraph (A); the:auditor determines that there are 5 still additional funds. to be allocated, the auditor shall, 6 , subject to,clauses (ii), and (iii), allocate those excess funds i f 7 to the.,courity superintendentof schools. Funds.allocated ! 8 -pursuant to this subparagraph shall be counted as 9 property tax revenues,for:special education programs in 10 . 'augmentation of the amount calculated pursuant to 11 :Section 2572 of the Education Cade; to the extent that 12 those; property tax revenues offset state: aid for county J3 offices of education and schaol_d str cts within the:count y r 14 :pursuant' o Section 56712;of the. Education.Code, 15 (ii) For.the 1995L96.fiscal year only,.this subparagraph 16 shall:have rlo application:to:the County;of Mono-and the 17 amount allocated pursuant to this subparagraph ;in the 18 County of Marin= shall:'not exceed five million dollars - 19 `($5,000,000) C(" 2Q {iii} Forthe1996-97 fiscal year only, the total amount21' of funds allocated- ,:by the auditor pursuant :to this 22 :subparagraph-and subparagraph (B) of paragraph ,(4) of 23 : subdivision' (d). of Section 97:2 shall not::exceed that : 24 portion t of. two .million five_ hundredthousand dollars 25 ;'($2,5,00 000 that corre onds . o _ ' } sp t the county�s 26 proportionate share of all- moneys allocatedpursuant to 27 this subparagraph and subparagraph - (.B) of paragraph 28. (4),6f subdivision. d :of Section.972 for.the 1995-96 fiscal 29 : year: Upon the request of the auditor;the Department of '30 Finance:shalLprovide to the auditor all information inahe 31 department's possession hat is necessary for the auditor 32 � to comply with this clause.. 33 � purpeses ;efleea :' �eajie ( 34 35 ems: 36 #fie: eas£ speeredueatieftgfaffi 37 ate; mph a a ' f. 38 1=eig a= g . 39*.' (0 :Foy- the 7997--98 fJseal.year and each `fiscal year t 40 thereafter, if,:after rx q mg- the allocations pursuant- to SB 880 — 26 I paragraphs :(2) and (3) and subparagraph ' A), the ( 2 auditor determines that there are still additional funds to 3 be allocated, the auditor shall, pursuant to 'a written 4 agreement between Me board of supervisors and the 5 , county superintendent of schools with respect to the 6 funding of special education programs, allocate. all 7 remaining funds as.follows: 8 (i) A.rr�ong the ,county, cities, and special districts in :9 proportion ;to the amounts of ad .valorem property taX 10 . revenue otherwise required to be shifted from those local 11 agencies to the . county's Educational Revenue 'j 12 Augmentation Fund,for.the relevant fiscal year.:€ to li To the county superintendent of schools. The rf, 14 arhount allocated pursuant tothis subparagraph.shall not 15 offset state aid for special eaducation programs for county offices.of education and school districts tivithin`the county 17 pursuant to''Section 56712 of the EducationCode'or any. 18 other ecti&ti of la W. ' 19 For, purposes of. ad valorem property tax revenue 20. . allocations for the 1997=98 fiscal-year and each fiscal year ,... 21 thereafter, :no amount of ad valorem: ,property, tax 22 revenue;allocated to#fie ee a e ;e she � r 23 pursuant "to this: subparagraph to the,.county; a city, a 24 special district, or the' county superintendent of schools 25 hall'be`deemed to:be.art amount of ad valorem property 26 tax revenue allocated to that lee& etgeney ;jurisdiction in 27 the,prior:fiscal year. 28 (5), For purposes of allocations. made. pursuant to 29 : Section 96:1:for, the 194-95 fiscal year, the amounts T . 30 allocated from the Educational Revenue Augmentation 31 :.Fund pursuant to this subdivision, other than those 32 amounts deposited . iii the Educational .Revenue '331 Augmentation Fund pursuant to any: provision'=of the 34 Health and Safety. Code, shall be deemed property :tax 35 revenue allocated to the Educational Revenue` 3& Augmentation Fund in.the prior,fiscal year. 37: . -3- 38 SEC. 5 Section 97.43 is. added to the Revenue and 39 Taxation :Code; to read: 98 —27 SB 880 1 ' 97:43. (a) Notwithstanding any other provision of }_ 2 this..article, for purposes 'of. ad :valorem property tax .4 i 3 revenue allocations for the:1997--�98 fiscal:year and:in each :41 fiscal year.thereafter; the:auditor shall comply'with both } :5 , of,the following requirements: 6 (1} ;The auditor, shall not allocate to the county's 7. Educational Revenue Augmentation Fund' a total 8 amount of ad valorem property tax revenue.that exceeds 9 the total amount of ad valorem propertyax revenue that 10 - Was allocated to .the `county's Educational : Revenue s 11 :Augmentation Fund ri the 1996-97 fiscal year: 12 (2} (A} The auditor-shall:, allocate to the ::county's 13 Educational Revenue Augmentation : Fund'' only that 14 , ercenta es eclfied in. :: sub aro a h B of each 154, amount.: of ad..,valorem ::property tax revenue that is 16 required to:be allocated-to 'that fund rather,than a local,, 17: agency'-as a: result o£�the :total reductions. calculated for 18 : that =local agency pursuant-to Sections 97.2. and, 97.3. ' 19 ($) For,-purposes of subparagraph (A) ;the allocation i 20 percentages are as folloWs: 22 .{ -} 23 24 e I 25 `. 26, :, Fistaf,Year Percentage (91, a 1997 98 90 i� 80 : ; 28 1998-99 29 1999-2000, 70 ' 60:30 2000-01 31 ."2001-02 50'; n 32 2002-03 40' s 33 2003-04 34 :2004-05 35 Zoos-06 io 36 2006-07 and each fiscal year thereafter 0 37 r 38 (b)-, (1) In the 1997-98 fiscal year. and each fiscal year } 39 thereafter, any amount of -ad valorem, property tax 40" revenue that is not allocated to a county s Educational 98 :.�.a.':v�—r:.�..r:r...,i......-;.::.::.>ca...zc:.....:. ...�-=.::ae:.�,.;s.S:w�.c,a.,...:3r?x..�4.H r.:% •e,+dti5.:��Li.�t��f'ax+.dsJ��e%'se. `v.^�:�5 d'.Si.. •,L,.z.ij:_;t:..4:.__. ry� ni SB 880 --- 28 — I 28 -- 1 Revenue Augmentation Fund as a result of any limit or 2 reduction established in subdivision (a) shall instead be �j 3 allocated among: the Local agencies in the county in 4 . accordance with:each local agency's proportionate share 5 of the total amount of ad valorem property tax revenues 6 : that would be required to be allocated to. the county's , 7 Educational Revenue Augmentation Fund in the absence. 8 of this section. ', 9 : 10 (2) Any reduction in the amount of ad all, f 11 property tax revenues deposited in a. county s 12 Educational Revenue Augmentation Fund resulting 13from:subdivis on' (a} shall�be applied first to,Uce the 14 amount of revenues allocated. from .that:fund to 4chool 15 districts. and county offices of education,.. and shall be 16 applied to reduce the allocations made"from that fund to 17 community college districts only :after:;.the allocations ..18 made from ,that fund to school districts and the county 19 office. of education-have been reduced to zero 20 SEC., ,6. No reimbursement is required by this, act 21 pursuant to Section 6 of Article XI1I B of the;=California . 22 `.Constitution because this, -act provides for offsetting 23 savings to local agencies or school districts that°result in 24 :no net.costs to the local agencies or school ditrcts within 25the `meaning of Section .17556 of Government Code: 26 Notwithstanding Section 17580 of the Government 27 Code,unless otherwise specified,the provisions of this act 28 shall become operative on the same date that-,the act. - .291 takes effect pursuant to the California Constitution 30 Q 5 31 tisanfor theSEC. 7 Thinacy 32: immediate :preservation of the public peace;'.health, Or z 33 safety within the meaning of Article IV of ' the 34 Constitution and shallg o into immediate effect. The facts ; 35 constituting the necessity are: 36 In order. to provide as soon as.possible that measure of } 37 fiscal relief that will allow local agencies to begin to i 98 a y - 29 — . SB 880 1 restore an adequate level of essential public services; it is r 2 necessary that this act take effect immediately. i y i, e 1; i k. .. 98 Cl it Z SENATE BILL No. 889 f Introduced by Senator Hayden February 27, 1997 An act to amend Section 41244.1 of the Education Code, and to add Section 97.43 to the Revenue and Taxation Code, relating to local government finance, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 889, as introduced, Hayden. Local government finance: property tax revenue allocation: local agency, relief. Existing lave requires the county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. Existing property tax law modifies Mgt��tk' these general allocation provisions by requiring, for purposes of determining property tax revenue allocations in each county for the 1992-93 and 1993--94 fiscal years, that the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and ,Y the county office of education. 99 _.__._......e.....,.;xa......vim.,..,.....:,:.a:....�:.,x.'a.i .. •.r_x.•[is_a S:'..:..S.:kl.YtSLf:t:w.S{rt?Z'Z:.L+XL','...:. Y 1 f i SB 889 This -bill would modify these reduction and transfer requirements, commencing with the 1997r-98 fiscal year, by requiring that each reduction and transfer amount calculated for a local agency in a county be annually reduced in accordance with an unspecified schedule, and that the revenues not allocated to the county's Educational Revenue Augmentation Fund as a result of these reductions be instead = _ allocated among the local agencies in the county, as provided. By imposing new duties in the annual allocation of ad valorem property tax revenues, this bill would impose a state-mandated local program. Existing law requires the Director of Finance to make certain adjustments in one of the formulas used in computing the state's obligation under the California Constitution to provide funding for school districts and community college districts so as to ensure that the modifications in property tax revenue allocation requirements that were made by a prior enactment do not have a net fiscal impact on school districts or community college districts, or upon the state's funding obligation to those districts. 1 This bill would instead apply the adjustment requirement to modifications in property tax revenue allocation requirements that are made by "qualified provisions," and would define "qualified provisions" to include both the prior enactment currently specified by, the adjustment requirement and a specified statute proposed to be added by this bill. > The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would declare that it is to take effect immediately t as an urgency statute. Vote: � 2/g. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. 99 yf rM l• 111 — 3 — SB 889 The people of the State of California do enact as follows.• 1 .SECTION lr Section 41204.1 of the Education Code is ` 2 amended to read: 3 41204.1, (a) (1) Pursuant to paragraph (2) of 4 subdivision (b) of Section 41204, the Director of Finance 5 shall annually adjust "the percentage of General Fund f 6 revenues appropriated - for school districts and 7 community college districts, respectively, in the 1986-87 8 fiscal ear" for purposes of applying pararaPh (1) of t 9 subdivision (b) of Section 8 of Article XVI of the i I 10 California Constitution, to reflect .those property tax 11 revenue allocation modifications, - required by the 12 amendments made to Chapter 6 (commencing with 13 Section 95) of Part 0.5 of Division 1 of the Revenue and f 14 Taxation Code by the aet adder 049 seems qualifying 15 provisions, as defined in paragraph (2), in a manner that 16 ensures that those modifications will have no net fiscal 17 impact upon the amounts that are otherwise required to 18 be applied by the state for the support of school districts 3 19 and community college districts pursuant to Section 8 of ?' 20 Article XVI of the California Constitution. 21 (2) For purposes of this section, `qualifying 22 provisions"means both of the following.• ( 23 (A) The amendments .made to Sections 97.2 and 973 24 of the Revenue and Taxation Code by Chapter 1111 ofthe 25 Statutes of 1996. 26 (B) Section 97.43 of the Revenue and Taxation Code. 27 (b) It is the intent of the Legislature ift enetetitig the is 28 aet adding this seer to ensure both of the following: 29 (1) That the changes required by the at-4 adding this 30 seetion qualifying provisions in the allocations of ad 31 valorem property tax revenues do not have a net fiscal 32 impact upon school districts, as defined in accordance 33 with Section 41302.5, or community college districts. 34 (2) That the changes required by the aet additig this 35 seetiett qualifying provisions in the allocations of ad 36 valorem property tax revenues do not have a net fiscal 37 impact upon the amounts of revenue otherwise required 38 to be applied by the state for the support of school districts 99 •1- r Y SB 889 -- 4 — 1 and community college districts pursuant to Section 8 of 2 Article XVI of the California Constitution. 3 SEC. 2. Section 97.43 is added to the Revenue and 4 Taxation Code, to read: 5 97.43. (a) (1) Notwithstanding any other provision 6 of this article, for purposes of ad valorem property tax 7 revenue allocations for the 1997-98 fiscal year and in each 8 fiscal year thereafter, the auditor shall allocate to the 9 county's Educational Revenue Augmentation Fund only 10 that percentage specified in paragraph (2) of each 11 amount of ad valoreYn property tax revenue that is 12 required to be allocated to that fund rather than a local 13 agency as a result of the total reductions calculated for 14 that local agency pursuant to Sections 97.2 and 97.3. 15 (2) For purposes of paragraph (1) , the allocation 16 percentages are as follows: 17 18 Fiscal Year Percentage (%) 19 1997-98 20 and each fiscal year thereafter 0 ;= 21 22 (b) In the 1997-98 fiscal year and each fiscal year 23 thereafter, any amount of ad valorem property tax 24 revenue that is not allocated to a county's Educational 25 Revenue Augmentation Fund as a result of any limit or s 26 reduction established :in subdivision (a) shall instead be 27 allocated among the local agencies in the county in 28 accordance with each local agency's proportionate share 29 of the total amount of ad valorem property tax revenues 30 . that would be required to be allocated to the county's 31 Educational Revenue Augmentation Fund in the absence 32 of this section. 33 SEC. 3. No reimbursement is required by this act 34 pursuant to Section 6 of Article XIII B of the California 35 Constitution because this act provides for offsetting 36 savings. to local agencies or school districts that result in 37 no net costs to the local agencies or school districts,within 38 the meaning of Section 17556 of the Government Code. 39 Notwithstanding Section 17580 of the Government 40. Code,unless otherwise specified, the provisions of this act 99 AO- - 5 — SB 889 1 shall become operative on the same date that the act 2 takes effect pursuant to the California Constitution. 3 SEC. 4. This act is an urgency statute necessary for the 4 immediate preservation of the public peace, health, or 5 safety within the meaning of Article IV of the 6 Constitution and shall go into immediate effect. The facts 7 constituting the necessity are: 8 In order to commence as soon as possible a program of 9 fiscal relief that will allow local agencies to restore. an 10 adequate level of essential public services, it is necessary 11 that this act take effect immediately. 0 99