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CaliforniaCityFinance.Com <br />Fiscal and Program Effects of <br />Initiative 21-0042A1 on Local Governments <br /> <br />If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in: <br /> Billions of local government fee and charge revenues placed at heightened legal peril. Related public <br />service reductions across virtually every aspect of city, county, special district, and school services <br />especially for transportation, and public facility use. <br /> Hundreds of millions of dollars of annual revenues from dozens of tax and bond measures approved by <br />voters between January 1, 2022 and November 9, 2022 subject to additional voter approval if not in <br />compliance with the initiative. <br /> Indeterminable legal and administrative burdens and costs on local government from new and more <br />empowered legal challenges, and bureaucratic cost tracking requirements. <br /> The delay and deterrence of municipal annexations and associated impacts on housing and commercial <br />development. <br /> Service and infrastructure impacts including in fire and emergency response, law enforcement, public <br />health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, <br />homelessness prevention and mental health services. <br /> <br />1. Local Government Taxes and Services Threatened <br />With regard to taxes, Initiative 21-0042A1: <br /> Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot. <br />o Voters may be less informed and more likely to vote against measures. <br /> Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter <br />approval (Upland). <br />o Because the case law regarding citizen initiative special taxes approved by majority vote (Upland) <br />is so recent, it is unknown how common these sorts of measures might be in the future. This <br />initiative would prohibit such measures after the effective date of the initiative. Any such <br />measures adopted after January 1, 2022 through November 8, 2022 would be void after <br />November 9, 2023. <br /> Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to <br />require that all tax increases or extensions contain a sunset (end date). <br />o This would require additional tax measures to extend previously approved taxes at additional cost <br />to taxpayers. <br /> Requires that a tax or bond measure adopted after January 1, 2022 and before the effective date of the <br />initiative (November 9, 2022) that was not adopted in accordance with the measure be readopted in <br />compliance with the measure or will be void twelve months after the effective date of the initiative <br />(November 9, 2023). <br />o If past election patterns are an indication, dozens of tax and bond measures approving hundreds <br />of millions of annual revenues may not be in compliance and would be subject to reenactment. <br />Most will be taxes without a specific end date. Because there is no regularly scheduled election <br />within the 12 months following the effective date of the initiative, measures not in compliance <br />would need to be placed on a special election ballot for approval before November 9, 2023 or the <br />tax will be void after that date. General tax measures would require declaration of emergency and <br />unanimous vote of the governing board. <br />2217 Isle Royale Lane • Davis, CA • 95616-6616 <br />Phone: 530.758.3952 • Fax: 530.758.3952 <br />Rev. January 7, 2022