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Reso 2003-212
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Reso 2003-212
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Resolution
Document Date (6)
10/6/2003
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L E AG U E 1400 K Street, Suite 400 • Sacramento, California 95814 <br />OF CALIFORNIA Phone: 916.658.8200 Fax: 916.658.8240 <br />CITIES www.cacities.org <br />LOCAL GOVERNMENT BALLOT INITIATIVE--AN OVERVIEW <br />November 2004 Election <br />State-Local Fiscal System Broken. There is widespread agreement that the state-local fiscal relationship is broken. One <br />of the reasons is because state leaders no longer respect the difference between state and local tax revenues. In recent <br />years, the state legislature and governor have approved laws that divert, use or delay the payment of local tax revenues <br />to local governments that finance public safety, public health, park, library, street maintenance and other vital community <br />services. This has caused pressure far higher local fees that can increase the cost of housing. <br />Local Funds Drained for Higher State Spending. Since 1991 more than $30 billion of local property taxes have been <br />drained from local governments. The state has used these funds to finance its constitutional funding obligation to public <br />education, allowing it to increase state general fund spending for other state programs. This has come at the expense of <br />vital local public safety and other services--costing cities alone more than $800 million this year-or $6.9 billion in lost <br />local property taxes over the last twelve years. <br />State Shifts Costs to Local Governments. In recent years the state also has shifted costs for state-sponsored <br />programs and delayed constitutionally required reimbursements to local governments for state mandated programs and <br />services. In the last two fiscal years, the state has "deferred" over $1 billion in constitutionally required reimbursements to <br />local governments for mandated services and programs. <br />Constitutional Protection Needed Now. City and other local government leaders know that in the current state budget <br />crisis this problem will only get worse if something isn't done. As a result, the League and other local government <br />associations have joined forces to sponsor a ballot initiative in November 2004 to put the voters in charge of whether local <br />tax dollars should be used to fund state services. It would not prevent structural reform of the fiscal system. It would <br />simply require that structural changes be planned collaboratively by state and local leaders and approved by the voters. It <br />would not raise taxes. It would not repeal laws the state has already passed. It would not require the return of property <br />taxes already taken. It would do two simple things: <br />Public Vofe Required. Require a 2/3 legislative vote and approval by a majority of the electorate before <br />a proposed state law may take effect that appropriates, reallocates, redistributes, reduces or suspends <br />the payment of local tax revenues (sales, property and VLF) to cities, counties and special districts; and <br />Reimburse for Mandated Costs. Clarify that the state must reimburse local governments for a new <br />mandated program or higher level of service and when revenues previously allocated to local <br />government are reallocated or redistributed to astate-created fund. <br />Consulting Team. Assisting the campaign are: Winner and Mandabach Campaigns (political consultants); Nielsen, <br />Merksamer (legal); and Fairbanks, Maslin, Maullin & Associates (survey research). <br />For More Information. Contact Chris McKenzie, Executive Director (916-658-8275); Mike Madrid, Public Affairs Director <br />(916-658-8272); or Dwight Stenbakken, Legislative/Policy Director (916-658-8232). <br />How to Make A Contribution. The League has established a political action committee (CITIPAC-ID # 1254399) for <br />contributions to this initiative. For more information, contact 916-658-8273, email info(a~citipac.orq or go to <br />www.citipac.org <br />C I T I P A C <br />www.citipac.org <br />
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