HomeMy WebLinkAboutMINUTES - 04201999 - C58 TO: BOARD OF SUPERVISORS
Contra
FROM: G Costa
to
PEAL BATCHELOR, COUNTY ADMINISTRATOR A' A
County
DATE: April 6, 1999
SUBJECT:
LEGISLATION: AB 1194 (LEONARD)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in SUPPORT of AB 1194 by Assemblyman Bill Leonard of
Rancho Cucamonga which would reduce the County's contribution to the
Educational Revenue Augmentation Fund (ERAF) by an unspecified amount each
year.
BACKGROUND;
The Board's 1999 Legislative Program contains a provision that the Board will
keSupport 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."
The Board has previously supported AB 24, AB 304 and SB 165 which also reduce
the amount of the County's contribution to the ERAF.
Assemblyman Leonard has introduced AB 1194 which, as introduced, provides that
the contributions to ERAF would be reduced in accordance with a schedule. The
actual statutory language does not yet specify a percentage, but presumably it will
be amended into the bill at a later date.
Since AB 1194 appears to be consistent with the Board's adopted 1999 Legislative
Program, it would be appropriate for the Board to indicate its support for AB 1194.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
� r
SEGNATURE S:
ACTION OF BOAR13 ON kDril 20_ '1999 APPROVED AS RECOMMENDED -!X— OTHER
VOTE OF SUPERVISORS
I HERESY CERTIFY THAT THIS IS A TRUE
-XX UNANIMOUS(ASSENT - } 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 20, 1999
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: SUPERVISORS . o COUNTY ADMINISTRATOR
See Page 2
BY DEPUTY
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y f
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cc; � � i llecar
Auditor-Con ror
Tony Enea, Senior Deputy County Administrator
Assemblyman Sill Leonard
Roam 2175 State Capitol
Sacramento, CA 95814
Les Spahnn; beim, Noack, Kelly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
-2-
CALIFORNIA LEGISLATURE-1999-203(0 REGULAR SSSS€ON
ASSEMBLE' BILL No. 1194
Introduced by Assembly Member Leonard
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
AE 1194, as introduced, Leonard. Local government
finance. property tax revenue allocation: local agency relief.
Existing property tax 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 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 reduces the amounts of ad valorem property tax revenues
that would otherwise be annually allocated to the county,
cities, and special districts pursuant to 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
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AB 1194 —2—
county,
2—
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, by requiring, commencing with the 1999-2000
fiscal year, that each reduction and transfer amount
calculated for a local agency in a county be annually reduced
in accordance with a specified 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.
Ey 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.
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 the provisions 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
as an urgency statute.
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-3— AB 1194
Vote: 213. 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 1986-57
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
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 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.
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 of the Revenue and Taxation Code by Chapter 1111 of the
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 en aeting-the,
28 etet a44in this ®=efieft
to ensure both of the following:
29 (1) That the changes required by the suis
30etiett -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 ad4ing this
35 seed rrr—qualifying provisions in the allocations of ad
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AB 1194 —4-
1
4-
1 valorem property tax revenues do not have a net fiscal
2 impact upon the amounts of revenue otherwise required
3 to be applied by the state for the support of school districts
4 and community college districts pursuant to Section 8 of
5 Article XVI of the California Constitution.
6 SEC. 2. Section 97.43 is added to the Revenue and
7 Taxation Code, to read:
8 97.43. (a) (1) Notwithstanding any other provision
9 of this article, for purposes of ad valorem property tax
10 revenue allocations for the 1999-2000 fiscal year and in
11 each fiscal year thereafter, the auditor shall allocate to the
12 county's Educational Revenue Augmentation Fund only
13 that percentage specified in paragraph (2) of each
14 amount of ad valorem property tax revenue that is
15 required to be allocated to that fund rather than a local
16 agency as a result of the total reductions calculated for
17 that local agency pursuant to Sections 97.2 and 97.3.
18 (2) For purposes of paragraph (1), the allocation
19 percentages are as follows:
091}
21
22 (b) In the 1999--2000 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
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
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--5 — AB 1194
l 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
S safety within the Meaning of Article 1V of the
6 Constitution and shall go into immediate effect. The facts
7 constituting the necessity are:
8 In order to provide as soon as possible that Measure of
9 fiscal relief that will allow local agencies to begin to
10 restore an adequate level of essential public services, it is
11 necessary that this act take effect immediately.
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