The URL can be used to link to this page

Home My WebLink AboutMINUTES - 06082004 - D2 i s � + TO: BOARD OF SUPERVISORS CONTRA COSTA FROM: John Sweeten,County Administrator COUNTY DATE: June S, 2004 SUBJECT: May Revise Local Goverment Package SPECIFIC REQUEST(S)OR RECOMMENDATION(S) & BACKGROUND AND JUST MCATION RECOMMENDATION(S): SUPPORT the Governor's local government package as outlined in the May Revise. Respectfully REQUEST the County's Legislative Delegation to support enactment of the May Revise Local Government Package quickly; passage of the agreed-upon constitutional protection measure; and no further budget cuts or reductions to local government. BACKGROUND/REASONtS)FOR RECOMMENDATION(S): The Governor's January Budget Proposal called for a $1.3 billion permanent property tax shift of local government revenue, $907 million of which would have come from counties. Contra Costa County's share would have been over $29 million. At the same time, cities and counties were moving forward on their November ballot initiative, The Local Taxpayers and Public Safety Protection Act, to protect local government revenues and to stop the proliferation of unfunded State mandates. Subsequently, intense discussions between the associations representing local government and the Governor's office resulted in a local government agreement that is outlined in the Governor's May Revise. Key elements of the agreement are: ➢ Two year property tax shift ➢ VLF/property tax swap ➢ Local revenue protection ➢ State mandate relief ,`► Constitutional Amendment CONTINUED ON ATTACHMENT- YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR—RECOMMENDATION OF BOOMMiTTEE A 'ROVE OTHER SIGNATURE(S): ACTION OF BOARD ON Jum 8, 2004 APPROVED AS RECOMMENDED X OTHER SPE NER: ROLLIE KATZ, Public E Tloyees Union Isocal One, P.O. Box 222, Martinez SUPPORTED the Governor's local government package as outlined in the May Revision of the Governor's budget; REQUESTED, respectfully, the County's Legislative Delegation to support enactment of the May Revise Local Government.Package VOTE OF SUPERVISORS I FIERY CERTIFY THAT THIS IS A X UNANIMOUS(ABSENT Now TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVISORS ON TFIE DATE SHOWN. Cardact:Sara Hothna:r,335- ATTESTED 3tme8, 2004 cc: CAD JOHN SWEETEN,CLERIC OF Legis-ww Deiegation{via CAO) THE BOARD OF SUPERVISORS DepadFnMt Heads AND COUNTY ADMINISTRATOR State Low(via CAO) l Deputy �.i BACKGROUND/REASON(S)FOR RECOMMENDATION tconCft Two-Year PEMIU Tax Shift Under the May Revise Local Government Package, each year for two years local governments would transfer $1.3 billion of property taxes to the State. Counties, cities and special districts would each contribute$350 million per year and redevelopment agencies would contribute $250 million per year. For Contra Costa County, the contribution would be approximately $9.3 million per year from the County's general fund and $800,000 per year from its Redevelopment Agency. 111yra r d from and cities and counties j1L& Tax Swan. The VLF would be permanently reduced to 0.65% orn 2% would receive an equivalent amount of property taxes to offset this revenue loss. For Contra Costa County, this would be approximately $9.5 million (FY 2004-05 estimate). Counties and cities would receive the growth of property taxes in feature years. The only remaining VLF revenue would be dedicated to realignment. Local Revenge Protection. The State would be prohibited from taking any more of local goverm-nent's property taxes, sales and use taxes or the remaining VLF. In addition, the State would be obligated to repay the FY 2003-04 VLF backfill loan to cities and counties in FY 2006-07. Cities and counties would also be protected with regard to the Prop 57 "triple flip" which suspended the one-quarter cent local sales and use tax. Cities and counties would be guaranteed payment of the property tax backfill and restoration of the Bradley-Bums Sales Tax to the full rate when the Prop 57 bonds are repaid. There is also a provision that allows future changes in use tax distribution for purposes of implementing the Streamlined Sales and Use Tax Agreement. State Mandate Relief, In FY 2006-07, the State would be required to pay its deferred mandate reimbursement obligations to local government. In addition, there would be a time limit on any State mandates that are not funded, with the exception of mandates on employee rights or public protection. Local governments would need to perform the services for at least a year, with a 90-day re-opener, if the legislature does not appropriate revenues to fund the mandate (to allow for reconsideration). The Governor would prohibited from blue- penciling any appropriations for mandates. Constitutional Amn-dment. The May Revise Local Government Package would be memorialized in a constitutional amendment to be placed before the voters in November 2004 by the legislature. Lei Live Sunpgrt Needed. The May Revise Local Government Package is an agreement between the state administration and local government. It requires support and concurrence by the Legislature. Some members have expressed concerns about the agreement. While the May Revise Local Government Package is not perfect, it is an important step in the right direction. It does not bar future opportunities for reform. Local governments, individually and collectively, have been advocating for a new state/local relationship for many years. The Local Government Package is significant in that it: ➢ Guarantees that local government revenues are protected for local uses and cannot be diverted for State purposes ➢ Stops the growing practice of unfunded State mandates which shift costs from the State to the counties regardless of our ability to pay for them. CSAC, the League of California Cities, the Special Districts Association and the Redevelopment Agencies Association are working together to rally counties, cities, special districts and redevelopment agencies to support the May Revise Local Government Package. Contra Costa County can join with local governments in urging our legislative delegation to: Enact the May Revise Local Government Package quickly ➢ Pass the agreed upon constitutional protection measure ➢ Refrain from further budget cuts or reductions to local government The Beard of Supervisors Contra John Sweeten County Administration Building �'� } Clerk of the Board 651 Pine Street,Room 106 Costa and Martinez,California 94553-1293j''�ou County {925)335-1900 County Administrator 1 _ John Gioia,1st District �•/ y Gayle S.Uilkema,2nd District I Millie Greenberg,3rd District 3 Mark DeSaulnier,4th District Federal D.Glover,5th District June 8, 2004 Senator Tom Torlakson Capitol Building#5061 Sacramento, CA 95814 RE: Support for May Remise Local Government Package Dear Senator Torlakson: On behalf of the citizens of Contra Costa County, the Board of Supervisors urges you to support the May Revise Local Government package and to: ➢ Enact the Local Government Package quickly > Pass the agreed upon constitutional protection measure ➢ Refrain from further budget cuts or reductions to local government The May Revise Local Government Package achieves two very important local government objectives: protecting local revenues and halting the proliferation of unfunded state mandates. It is an essential first step in developing a state/local relationship that truly supports the citizens and businesses of California. Thank you for your consideration. Sincerely, Federal D. Glover Chair cc: Governor Arnold Schwarzenegger Cities of Contra Costa County CSAC