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HomeMy WebLinkAboutMINUTES - 05022002 - D2 V-2000 Contra TO: BOARD OF SUPERVISOR5 Costa County FROM: SUPERVISOR DONNA GERBER DATE: May 2, 2000 SUBJECT: 2000-2001 COUNTY BUDGETARY ISSUES SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. ACKNOWLEDGE that since the 1992-93 fiscal year, the State has taken $607 million in property tax revenue from this County through the Educational Revenue Augmentation Fund (ERAF). 2. RECOGNIZE that while the Legislature provided $2.2 million to this County in the 1999--2000 fiscal year to assist in offsetting the ERAF transfers, it was one-time money which is not available for the 2000-2001 fiscal year. 3. ACKNOWLEDGE that the Governor's May revision and the legislative budget discussions will identify as much as $10 billion in new revenue. 4. SUPPORT AB 1880, which provides for a minimum of 151/2% in property taxes for counties. 5. ACKNOWLEDGE that the State Controller's State & Municipal Advisory Reform Team - Enhanced Report (SMARTER) released in December 1999 recommends changes in the manner in which sales tax is allocated locally and caps the transfer of property taxes through the ERAF at $3.2 billion, with the balance of $450 million being returned to local governments. 6. ACKNOWLEDGE that the Speaker's Commission on State/Local Finance has made some innovative recommendations regarding an exchange of sales tax for property tax between the State and local governments and that AB 1396 and a number of CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND ATI BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ---ACTION OF BOARD ON May 2,_ 2000 APPROVE AS RECOMMENDED y X OTHER HEAP.D.and ACCEPTED thei report on the Fiscal Year 2000-•2001 budgetary issues : and APPRov n tha RannmmanAnt4n"a o�nrra SUPERVISOR DONNA GERBER 2000-2001 BUDGETARY ISSUES MAY 2,2000 PAGE 2 other bills that have been introduced on this subject could be the vehicle which will be used to enact whatever compromise can be agreed to in a joint conference committee on State/local fiscal reform. 7. RECOGNIZE that both the California State Association of Counties (CSAC) and the California League of Cities have advanced proposals to reform the fiscal relationship between the State and local governments and that these proposals deserve careful consideration by the Legislature and the Administration and SUPPORT CSAC`s proposal which is contained in SB 1982 (Alpert). 8. EXPRESS the Board's appreciation to Assemblyman Tom Torlakson, Senator Richard Rainey, Senator Steve Peace and the members of the Senate Budget and Fiscal Review Committee for the series of hearings the Committee has held around the State to bring together State and local officials in a positive dialogue about the State and local fiscal relationship. 9. ACKNOWLEDGE that the Senate and Assembly have appointed a conference committee to address local government fiscal reform in light of the various reports and recommendations that have come forth. The conference committee will hold their initial meeting this week. Members include Senators Peace, Perata and Poochigan and Assembly Members Aroner, Longville and Runner. 10. SUPPORT the current Senate budget provision that appropriates $1.5 billion for one-time local government subventions, including $650 million in discretionary revenue and $850 million in local capital outlay and infrastructure. 11. RECOGNIZE that counties are pursuing the ERAF lawsuit as a parallel strategy to help rebuild communities by restoring fiscal health to local governments, especially Counties. 12. REQUEST the County Administrator to return to the Board of Supervisors during our budget workshop on May 23, 2000 with a comprehensive update of these issues and with a standing weekly update as events unfold. 13. EXPRESS the Board's interest in being engaged in both the budget process within the County and in advocating for the needs of our residents at the State level as the surplus and local government fiscal reform are discussed. The Board's request for a joint public meeting with State Legislators and Governor's staff is part of that engagement. BACKGROUND: The State has not taken any action to return any of the Educational Revenue Augmentation Fund (ERAF) to counties, despite their substantial surplus. As a result, it is essential that this County continue close scrutiny of the financial challenges with which we are faced. We held a workshop March 28 on the Health Services Department's financial challenges. SUPERVISOR DONNA GERBER 2000-2001 BUDGETARY ISSUES MAY 2, 2000 PACE 2 our County's ability to provide mandated services and remain financially sound. I am suggesting that the Board continues to stay engaged in discussions of these issues and that we receive a further update on the status of pending legislation and budget considerations both at the County and State level on May 23. In addition, on May 23 we should have a review of the Probation and Health Services Budgets. Finally, I would life the County Administrator to provide weekly updates on the status of the State budget discussions in view of the Legislative Analyst's conclusion that there is a surplus that may range as high as $10 billion more than what was included in the Governor's Budget. Contra Costa TO: BOARD OF SUPERVISORS County FROM: SUPERVISOR DONNA GERBER t ;v 1; DATE: May 2, 2000 ~ SUBJECT: 2000-2001 COUNTY BUDGETARY ISSUES r SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUS11FICATION RECOMMENDATIONS: 1. ACKNOWLEDGE that since the 1992-93 fiscal year, the State has taken $+607 million in property tax revenue from this County through the Educational Revenue Augmentation Fund (ERAF). 2. RECOGNIZE that while the Legislature provided $2.2 million to this County in the 19992000 fiscal year to assist in offsetting the ERAF transfers, it was one-time money which is not available for the 2000-2001 fiscal year. 3. ACKNOWLEDGE that the Governor's May revision and the legislative budget discussions will identify as much as $10 billion in new revenue. 4. SUPPORT AB 1880, which provides for a minimum of 151/2% in property taxes for counties. 5. ACKNOWLEDGE that the State Controller's State & Municipal Advisory Reform Team - Enhanced Report (SMARTER) released in December 1999 recommends changes in the manner in which sales tax is allocated locally and caps the transfer of property taxes through the ERAF at $3.2 billion, with the balance of $450 million being returned to local governments. 6. ACKNOWLEDGE that the Speaker's Commission on State/Local Finance has made some 'innovative recommendations regarding an exchange of sales tax for property tax between the State and local governments and that AB 1396 and a number of CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATI BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ---ACTION OF BOARD ON M a y 2 2000 APPROVE A5 RECOMMENDED XX OTHER HEARD and ACCEPTED th6 report on the Fiscal Year 2000-2001 budgetary issues ; and APPROVED the Recommendations above . VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN XX UNANIMOUS(ABSENT #5 ? AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED M a X.,,Z, X 0 0 0 CONTACT: DONNA GERBER (9.25)64&..65 PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: COUNTY ADMINISTRATOR k/.* E3 DEPUTY 0 SUPERVISOR DONNA GERBER 2000-2001 BUDGETARY ISSUES MAY 2,2000 PAGE 2 other bills that have been introduced on this subject could be the vehicle which will be used to enact whatever compromise can be agreed to in a joint conference committee on State/local fiscal reform. 7. RECOGNIZE that both the California Mate Association of Counties (CSAC) and the California League of Cities have advanced proposals to reform the fiscal relationship between the State and local governments and that these proposals deserve careful consideration by the Legislature and the Administration and SUPPORT CSAC's proposal which is contained in SB 1982 (Alpert). 8. EXPRESS the Board's appreciation to Assemblyman Tom Torlakson, Senator Richard Rainey, Senator Steve Peace and the members of the Senate Budget and Fiscal Review Committee for the series of hearings the Committee has held around the State to bring together State and local officials in a positive dialogue about the State and local fiscal relationship. 9. ACKNOWLEDGE that the Senate and Assembly have appointed a conference committee to address local government fiscal reform in light of the various reports and recommendations that have come forth. The conference committee will hold their initial meeting this week. Members include Senators Peace, Perata and Poochigan and Assembly Members Aroner, Longville and Runner. 10. SUPPORT the current Senate budget provision that appropriates $1.5 billion for one-time local government subventions, including $650 million in discretionary revenue and $850 million in local capital outlay and infrastructure. 11. RECOGNIZE that counties are pursuing the ERAF lawsuit as a parallel strategy to help rebuild communities by restoring fiscal health to local governments, especially counties. 12. REQUEST the County Administrator to return to the Board of Supervisors during our budget workshop on May 23, 2000 with a comprehensive update of these issues and with a standing weekly update as events unfold. 13. EXPRESS the Board's interest in being engaged in both the budget process within the County and in advocating for the needs of our residents at the State level as the surplus and local government fiscal reform are discussed. The Board's request for a joint public meeting with State Legislators and Governor's staff is part of that engagement. BACKGROUND: The State has not taken any action to return any of the Educational Revenue Augmentation Fund (ERAF) to counties, despite their substantial surplus. As a result, it is essential that this County continue close scrutiny of the financial challenges with which we are faced. We held a workshop March 28 on the Health Services Department's financial challenges. We heard a report from Employment and Human Services on April 25 outlining the current workload demand and potential future financial issues that could develop as demographic increases strain staff resources. We have a general budget workshop scheduled on May 23, 2000. In addition, the Board is requesting that our State Legislative Delegation and representatives from the Governor's office join us in a public meeting in May or June to discuss the combination of increased demands on health and social services programs coupled with inadequate revenues in order to illustrate the very real impacts of ERAF on SUPERVISOR DONNA GERBER 2000-2001 BUDGETARY ISSUES MAY 2,2000 PAGE 2 our County's ability to provide mandated services and remain financially sound. I am suggesting that the Board continues to stay engaged in discussions of these issues and that we receive a further update on the status of pending legislation and budget considerations both at the County and State level on May 23. In addition, on May 23 we should have a review of the Probation and Health Services Budgets. Finally, I would like the County Administrator to provide weekly updates on the status of the State budget discussions in view of the Legislative Analyst's conclusion that there is a surplus that may range as high as $10 billion more than what was included in the Governor's Budget.