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State Budget Issues of Concern to City Budgeters April 13, 2011 <br /> has provided about $39 million annually for Williamson Act Subventions. That funding was reduced to <br /> $10 million in FY2010 -11 and has now been eliminated completely in the adopted cuts to the FY2011 -12 <br /> state budget. <br /> State Mandates, State Mandate Reimbursement <br /> Continuing the practice of many recent years, the Legislature has once again suspended a long list of <br /> state mandates, thereby eliminating the need for tens of millions of mandate reimbursement funding. <br /> The Legislature also again deferred payment for mandate reimbursements owed to local agencies for <br /> costs incurred prior to FY2004 -05. <br /> • <br /> Use tax reporting (SB86) <br /> • <br /> Among the state budget trailer bills signed by the Governor in March was SB86 which, among other <br /> things, allows persons who are required to report and remit Use Tax on the purchase of tangible <br /> personal property to use a "Look -Up" table, which provides an estimated amount due based on income <br /> level. Under existing law, a use tax Is imposed purchaser for the storage, use, or other consumption in <br /> this state of tangible personal property purchased from any retailer. The purchaser is liable for the tax <br /> when the purchase of that tangible personal property is subject to tax. The simplified look -up table is <br /> intended to simplify reporting of use tax liability and improve collections. State Board of Equalization <br /> staff estimates that the new law will improve annual use tax collections by over $10 million, about $4 <br /> million of which are local allocations. <br /> Redevelopment <br /> The Governor's proposal to eliminate redevelopment agencies has not garnered sufficient votes for <br /> passage, but remains a part of on -going budget negotiations. For the latest information see the <br /> California Redevelopment Association website. http: / /www.calredevelop.org/ <br /> State Parks <br /> General fund reductions to the state park system will result in the closure of dozens of state parks in <br /> FY2011 -12. The Governor is expected to release a closure list soon. The list has been prepared by the <br /> State Department of Parks and Recreation based on criteria specified in legislation. Local agencies will <br /> need to consider the economic and public service implications of the closure of these facilities. <br /> 2217 Isle Royale Lane • Davis, CA • 95616 - 6616 <br /> phone /fax: 530.758.3952 • coleman @munil.com • www.CaliforniaCityFinance.com <br />