HomeMy WebLinkAboutMINUTES - 04201999 - C57 T : BOARD Ol, SUPERVISORS fi Contra
PHIL BATCHELOR, COUNTY ADMINISTRATOR ate- n: . ' '+ Costa
: . County
DATE: April 6, 1999
SUBJECT:
LEGISLATION: AB 1195 (LONGVILLE) - FREEZE AND REDUCTION IN
AUGMENTATION FUND
SPECIFIC REQUEST(S)OR RECOMMENDATIONS)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in support of AB 1195 by Assemblyman John Longville of San
Bernardino, which would freeze the growth of the Educational Revenue
Augmentation Fund (ERAF) at the 1998-99 fiscal year level, effective for the 1999-
2909 fiscal year, includes an expression of legislative intent to reduce the
contributions to the ERAF by 10% per year until it reaches zero, and would reduce
the contribution to the ERAF by an unspecified schedule.
BACKGROUND:
The Board of Supervisors has included in its 1999 Legislative Program support for
the efforts of CSAC and the Urban Counties Caucus to at least cap the growth of
ERAF, and preferably begin to return some of the base to counties and cities.
Assemblyman Longville has introduced AB 1195 which, as introduced,would freeze
the growth in the ERAF at the 1998-99 fiscal year level and allow existing taxing
jurisdictions to retain the growth which would otherwise have been transferred to the
school districts and county offices of education. The bill includes an expression of
legislative intent that the ERAF contributions be reduced by 10% a year until they
reach zero. The statutory language does not yet includes the actual schedule of
percentage reductions, but presumably that will be added in a later amendment.
CONTINUED ONATTACHMENT: -YES YES SIGNATURE/ ti
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE -OTHER
4 {
SIGNATURES
ACTION OF BOARD ON April 0, 1999 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
yhX
UNANIMOUS(ABSENT } AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES:_. _ AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED April Q, 9 9
Contact: PHIL BATCHELOR CLERK OF THE BOARD OF
Cc: SUPERVISORS ND COUNTY ADMiNiSTRATOR
See Page 2
BY ' DEPUTY
In view of the fact that AB 1195 appears to be consistent with the Board's adopted
Legislative Program, it is recommended that the Board indicate its support of AB
1'195.
cc: County Administrator
Auditor-Controller
Tony Enea, Senior Deputy County Administrator
Assemblyman John Longville
62nd Assembly District
Room 2196 State Capitol
Sacramento, CA 95814
Les Spahnn; Heim, Noack, Kelly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
-2-
CALIFORNIA LEGISLATURE--3999-2000 REGULAR SESSION
ASSEMBLY BILL No. 1195
Introduced by Assembly Member Longville and Senator
Rainey
(Coauthors: Assembly Members Ackerman, Alquist, Ashburn,
Baldwin, Bates, Battin, Baugh, Brewer, Briggs, Calderon,
Campbell, Cardenas, Corbett, Cox, Cunneen, Davis,
Dickerson, Firebaugh, Florez, Frusetta, Granlund,
Hertzberg, Honda, Rouse, Kaloogian, Keeley, K.uehI,
Leach, Lempert, Leonard, Lowenthal, Maddox,
Maldonado, 'Mazzoni, Migden, Nakano, Ciller, Robert
Pacheco, Peseetti, Reyes, Runner, Shelley, Soto, Steinberg,
Strickland, Strom m'Martin, Thompson, Thomson, Torlakson,
Vincent, Washington, Mayne, Wiggins, Wildman, and
Zettel)
February 26, 1999
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 1195, as introduced, Longville. Local government
finance: property tax revenue allocation: local agency relief.
Existing property tax lacy requires the county auditor, in
each fiscal year, to allocate property tax revenue 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
Corrected 3-12.1399---See last page. 99
AB 1195 —2—
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 also reduces the amounts of ad valorem property tax
revenue that would otherwise be annually allocated to the
county, cities, and special districts pursuant to these general
allocation requirements 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 1999-2000 fiscal year, by
requiring that each reduction and transfer amount calculated
for a local agency in a county be limited to that agency's
reduction and transfer amount for the 1998-99 fiscal year, as
annually reduced in accordance with an unspecified schedule.
This bill would also 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. 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 to 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.
99
-3— AB 1.195
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:
I SECTION 1. The Legislature hereby finds and
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 1998-99 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 five hundred ninety
11 million dollars ($3,590,000,000) in the 1998-99 fiscal year,
12 by 10 percent per year until the total amount of revenues
13 that are so shifted is reduced to zero.
14 (c) Ensure that those changes specified in this section
15 are made only after all calculations are made with respect
16 to those revenues that are to be allocated pursuant to
17 Section 8 of Article XVI of the California Constitution, in
18 order to ensure that schools, from the kindergarten level
19 to the community college level, inclusive, are fully
20 funded.
21 SEC. 2. Section 41204.1 of the Education Code is
22 amended to read:
23 41204.1. (a) (1) Pursuant to paragraph (2) of
24 subdivision (b) of Section 41204, the Director of Finance
25 shall annually adjust "the percentage of General Fund
26 revenues appropriated for school districts and
27 community college districts, respectively, in the 1986-87
28 fiscal year" for purposes of applying paragraph (1) of
29 subdivision (b) of Section 8 of Article XVI of the
30 California Constitution, to reflect those property tax
31 revenue allocation modifications, required by the
99
F
AB 1195 —4—
I
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1 amendments made to Chapter 6 (commencing with
2 Section 95) of Part 0.5 of Division 1 of the Revenue and
3 Taxation Code by t-he-ae� ---5 -.- gual%dying
4 provisions, as defined in paragraph (2), in a manner that
5 ensures that those modifications will have no net fiscal
6 impact upon the amounts that are otherwise required to
7 be applied by the state for the support of school districts
8 and community college districts pursuant to Section 8 of
9 Article XVI of the California Constitution.
10 (2) For purposes of this section, "qualifying
11 provisions" means bath of the following:
1 (A) The amendments made to Sections .97.2 and 97.3
13 of the Revenue and Taxation Code by Chapter 1111 of the
14 Statutes of 1996.
15 (B) Section 97.43 of the Revenue and Taxation Cade.
16 (b) It is the intent of the Legislature i-M -enaetingthe
17 ttet-ad4iftg this seefie- to ensure both of the following:
1 (1) That the changes required by the aet adding this
19 siert qualifying provisions in the allocations of ad
20 valorem property tax revenues do not have a net fiscal
21 impact upon school districts, as defined in accordance
22 with Section 41302.5, or community college districts.
23 (2) That the changes required by the aet--adding this
24 see6o t qualifying provisions in the allocations of ad
25 valorem property tax revenues do not have a net fiscal
26 impact upon the amounts of revenue otherwise required
27 to be applied by the state for the support of school districts
28 and community college districts pursuant to Section 8 of
29 Article XVI of the California Constitution.
30 SEC. 3. Section 97.43 is added to the Revenue and
31 Taxation Code, to read:
32 97.43. (a) (1) Notwithstanding any other provision
33 of this article, for purposes of act valorem property tax
34 revenue allocations for the 1999-2000 fiscal year and in
35 each fiscal year thereafter, the auditor shall allocate to the
36 county's Educational Revenue Augmentation Fund only
37 that percentage specified in paragraph (2) of each
38 amount of ad valorem property tax revenue that was
39 allocated in the 1998-99 fiscal year to that fund, rather
40 than a local agency, as a result of the total reductions
99
1
AB 1195
1 calculated for that local agency pursuant to Sections 97.2
2 and 97.3.
3 (2) For purposes of paragraph (1), the allocation
4 percentages are as follows:
5
6 Fiscal Year Percentage
7 1999-2000
8 - and each fiscal year thereafter 0
9
10 (b) In the 1999-2000 fiscal year and each fiscal year
11 thereafter, any amount of ad valorem property tax
12 revenue that is not allocated to a county's Educational
13 Revenue Augmentation Fund as a result of any limit
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 SEC. 4. No reimbursement is required by this act
22 pursuant to Section 6 of Article X111 B of the California
23 Constitution because this act provides for offsetting
24 savings to local agencies or school districts that result in
25 no net costs to the local agencies or school districts, within
26 the meaning of Section 17556 of the Government Code.
27 SEC. 5. This act is an urgency statute necessary for the
28 immediate preservation of the public peace, health, or
29 safety within the meaning of Article IV of the
30 Constitution and shall go into immediate effect. The facts
31 constituting the necessity are:
32 In order to commence as soon as possible a program of
33 fiscal relief that will allow local agencies to restore an
34 adequate level of essential public services, it is necessary
35 that this act take effect immediately.
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AB 1195 -6-
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6-2 CORRECTIONS
3 Heading—Line 7.
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