Rancho Palos Verdes City Council
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SEPTEMBER 7, 2004 POSITION ON PROPOSITION 1A -- "PROTECTION OF LOCAL GOVERNMENT REVENUES SEPTEMBER 7, 2004 POSITION ON PROPOSITION 1A -- "PROTECTION OF LOCAL GOVERNMENT REVENUES

TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS

FROM: CITY MANAGER

DATE: SEPTEMBER 7, 2004

SUBJECT: POSITION ON PROPOSITION 1A -- "PROTECTION OF LOCAL GOVERNMENT REVENUES"

RECOMMENDATION

Consider taking a City position in support of Proposition 1A—Protection of Local Government Revenues.

BACKGROUND/DISCUSSION

In accordance with City Council policy, Mayor Peter Gardiner and Mayor Pro Tem Larry Clark requests the Council to consider taking a position in support of Proposition 1A.

After years of state raids on local funds to pay for state programs, and years of effort on the part of local officials to qualify an initiative for the statewide ballot to protect local revenues, the local government coalition reached an historic agreement with Governor Arnold Schwarzenegger and legislative leaders that will place an alternative measure -- Proposition 1A -- on the November 2nd general election ballot. If approved by the voters, Proposition 1A will enact substantial reforms to restore the local government share of property tax, sales tax and vehicle license fee revenues needed for police, fire and other essential local services.

What Proposition 1A Does:

  • Restricts the State Legislature’s ability to raid local government funding, including local government share of existing sales taxes, property taxes and VLF revenues.
  • Protects funding for local services like fire and paramedic response, law enforcement, emergency and trauma care, parks, roads, libraries, transportation and more.
  • Requires the State to provide funding for any program or service the State forces local governments to provide. If the State fails to provide funding, Legislature must suspend these state-mandates.
  • Provides flexibility in a state budget emergency. Prop 1A allows the State to borrow local government revenues if funds are needed in fiscal emergency to support schools or other state programs.

What Proposition 1A DOES NOT Do:

  • DOES NOT Does not raise taxes. Prop 1A helps ensure local governments don’t have to raise taxes or fees in the future to make up for revenues raided by the State Legislature.
  • DOES NOT reduce funding for schools or any other state programs or services.
  • DOES NOT increase funding to local governments.
  • DOES NOT prevent the state from borrowing local funds in times of fiscal emergency, or shut the door to future reforms of the state-local fiscal relationship.

Proposition 1A Replaces Need for Prop 65.

A coalition of local government officials, including officials with the City of Rancho Palos Verdes, placed Proposition 65 on the ballot earlier this year to stop the State from taking local government funding. However, that was before passage of the historic bipartisan agreement that put Prop 1A on the ballot. Prop 1A is a better, more flexible approach to protecting local services and local tax dollars. That’s why the League of California Cities and the LOCAL coalition are now supporting Proposition 1A and opposing Proposition 65.

FISCAL IMPACT

None associated with this report.

PREPARED BY

Gina Park

Assistant to the City Manager

APPROVED BY

Les Evans

City Manager

Attachment: League of California Cities FAQ’s on Proposition 1A