CA: Localities may zip wallets shut

The Sacramento Bee ^ | Thursday, December 18, 2003 | Christina Jewett

[Ernest_at_the_Beach]

Cities and counties may seek a law requiring a vote before the state taps their funds.

California cities and counties are seeking a "last resort" November ballot measure that would close local tax dollar vaults to state legislators and hand the key to voters.

[Ernest_at_the_Beach]

BAWAAHAHAHAHA!!

Keep the money close to home is always a good plan!

[searchandrecovery]

...when people could start to see local police calls go unanswered and parks grow unmowed...

Time to start releasing prisoners early 'cause there's no mo' money. Hey, I've got an idea - how about cutting welfare, public housing, support for the "arts", politicians' staff, etc. ...

[Ernest_at_the_Beach]

They always do that , don't they!

[SierraWasp]

"Since 1910, local money belonged to locals and state money to the state. That changed when Proposition 13 passed in 1978. That measure, which aimed to stem soaring property tax bills as California property values increased, led to a new fiscal structure that ultimately put local money in state pots."

What they aren't saying in the third sentence is that Prop 13 never intended to shift money and the power that goes with it to "centralized government" in Sacramento!!! They (the desperate liberals) frantically sought this to cripple Prop 13 and get by with totally preverting it's intended constitutional limitation on the "Tax Suckers!"

I have to give Arnold some limited credit for exercising some of his limited power (not his star power) to at least make a show of supporting something I have always stood for... Local control in local hands!

BUT... What's happening right now is phony because these local governments went through Davis' entire first term without the trippled car tax. They shouldn't have planned on it continuing!!!

So, therefore, I have nothing to encourage me about Arnold, once again! He's just using the situation to try and make himself look good, which is the "Prime Directive" of any government official and is "business as usual!!!

Hey! He built my expectations when he promised to be a "Governor for ALL the people!" There's no need for ALL the people to be in future bondage in order for Arnold to "look good!"

"Keep the money close to home is always a good plan!

You are correct, sir!!! (It shoulda never left home in the first place)(it causes grandstanding in the Crapitol)

[searchandrecovery]

Yep. I worked for the state of nj as a contractor for a couple of months a few years ago. My take on this is: all public employees are incompetent a-holes who couldn't cut it in the real (private) world. They are just killing time before they retire. I was witness to the gubmint employee first-meet ritual - "So, how long 'til your (stupidly public-funded) retirement?".

Very disturbing. Socialism at it's best.

[Amerigomag]

Here's the real beauty to this initiative. It stops the transfer of wealth from "rich" counties to "poor" counties. In a word it stops an inordinate amount of wealth from being transfered to Los Angeles County.

Since redistribution is based on population, not the individauls county's contibution, those counties with large areas, moderate to high land values and low populations such as San Louis Obispo, Fresno and Sanata Barbara Counties are "rich" counties. Counties with super high population densities, regardless of land values, like San Francisco, Alameda and Los Angeles County are "poor" counties. Under this formula, the poorest of California's counties is Los Angeles County.

[forester]

Since 1910, local money belonged to locals and state money to the state. That changed when Proposition 13 passed in 1978. That measure, which aimed to stem soaring property tax bills as California property values increased, led to a new fiscal structure that ultimately put local money in state pots.

This article is either poorly researched, or intended as propoganda. Property taxes on my house went to the City up till the early 1950's. Now it goes to the County who sends it to the State, who sends back to the City with expensive strings attached.

The League of Cities' proposal, endorsed by about 120 of the state's cities and counties, has no direct impact on the car tax cut, though it would shift money and power away from the state and {give it back} to local governments, said Megan Taylor, a spokeswoman for the California League of Cities.

As my wife is on our City Council, we get the League of Cities newsletters. They have done excellent exposes on how the State has usurped local authority over what to spend tax money on...especially the ERAF property tax shift. I see no mention of this what-so-ever in the article. Either the Bee has incompetent reporters, or they are intentionally misrepresenting the facts.

[Ernest_at_the_Beach]

Thanks for the input!

[forester]

Here is an example of what the Bee is not reporting from the April 2003 issue of Western City, a publication of the California League of Cities.

Reforming the State-Local Fiscal Relationship

by Tom Torlakson

Senator Tom Torlakson (D-Antioch) represents the 7th Senate District, which includes most of Contra Costa County. He is chairperson of the Senate Local Government Committee and the Senate Select Committee on Bay Area Infrastructure.

Great challenges can create great opportunities. The budget deficit facing California is forcing the state and our local government partners to make some difficult choices, but we must also take the opportunity to examine long-term changes, including potential reforms in the state-local fiscal relationship.

As chairperson of the Senate Local Government Committee, I am committed to working with elected city leaders, and I will actively seek their help and guidance during this challenging time. We know the current system is out of balance, especially with the ongoing impact that major policy changes have had on local governments. Cities are fiscally constrained, and the increased reliance on the sales tax — a legacy of Proposition 13 — skews local land use incentives. Meanwhile, the state has added mandates and created additional costs for local governments.

As a former Contra Costa County supervisor, I strongly op-posed the Educational Revenue Augmentation Fund (ERAF) shifts that initiated the raid on local revenues in the early 1990s. As the Senate Local Government Committee noted in a 2001 report, “Tension & Ambiguity: A Legislative Guide to Recent Efforts to Reform California’s State-Local Fiscal Relationship,” this shifting of property tax revenues from cities, counties and special districts to schools began undoing in large part what the state had done to provide bailout money to local governments in the aftermath of Prop. 13. New programs have provided important assistance to local governments, including state funding for trial courts, the Citizens’ Option for Public Safety program, fines and forfeitures for cities, and reimbursement to cities for booking fees paid to counties. Nonetheless, we continue to struggle with the ongoing legacy of the ERAF shifts.

[marsh2]

You are wrong on the triple tax. The lower rate was backfilled up to its full amount by the State. It was there way of refunding surplus. The car owner saw the cut, but the full amount was paid to the counties by the State. When the budget surplus ceased, the backfill ceased and the tax reverted to its full amount on the bill sent to the car owner. Revenue to cities and counties did not change.

As of the new fiscal year, the legislature deffered payment of the VLF to the cities and counties until October. It said it would pay the amount it "borrowed" back in 2006. Some counties borrowed based on this promise. (Our county knew better.) We cut the Sheriff's budget by 17% instead. (A portion of that was due to loss of rural crime monies.)

After Gov. S. reduced the VLF back to 1/3 without obtaining continuance of the backfill, we saw a substantial reduction in revenue. (The VLF is 25% of the General Fund and was cut to 1/3. That would require a cumulative overall budget cut in excess of 30% to match reduced revenue.

[Fledermaus]

Good! It's about time governments start shutting down and closing up funds.

Most of the money goes to unaccountable BULLCRAP!

WAKE UP AMERICA! Ken Lay and Enron have nothing on the Federal, State, County and Municipal Governments you MORONS keep putting in office.

So don't whine to me about corporate malfeasence when you are more complicit in mafia like tactics involving government spending.

When I read or listen to some government hack lying and complaining about money "for the children" I add another name to my list of people that I hope die slow, horrible deaths.

[SierraWasp]

"You are wrong on the triple tax."

Yes, as a result of deliberately trying to forget the mess since leaving office in 1999, I am wrong in not realizing or remembering the embarrassing "back-filling" the state has done to make counties and cities and districts a DEPENDENCY CLASS of the big, centralized government, far removed from the attention of the people!!!

Forester is correct to bring up the ERAF garbage from the early 90's that the stupid Steve Peace dreamed up and Pete Wilson signed! Prop 98 with the lying Jack Lemmon ad campaign set that all up with the teachers unions demanding the fixed 40% of each budget being forced with a constitutional amendment to the schools!!!

I am NOT wrong about the fact that local governments are being whip-sawed by the state's deliberate attempt(s) to circumvent Prop 13 by consolidating as much money, and thus power and control into Sacramento, making CA government overly "top-heavy" and thus, unstable and the state practically ungovernable!!!

Darrell Steinberg is especially dangerous in his recent and soon to be revived proposals re:"The Fiscalization of Land Use" involving "The Regionalization of Sales Taxes" to stop "Urban Sprawl" and install "Smart Growth!"

This is what I'm deathly afraid that Arnold will get sucked into with all his Greenie-Weenie EnvironMental "Advisors!" Around these parts, "Regionalism" only means shifting the remaining revenues, and thus control, to the metro-sexual areas and away from neighboring rural-sexual areas!!!

Watch for Steinberg to be heavily quoted in the BEE and another attempt by him to make a big push for "The Fiscalization of SMART GROWTH" which is a desperately dumb, Liberal concept!!!

[SierraWasp]

Here's what I'm talking about re: Steinberg, from the above thread starting article!

Assemblyman Darrell Steinberg, D-Sacramento, who had seen the dynamic firsthand when he was a member of the Sacramento City Council, said the proposed measure is flawed because it ignores larger problems facing the state.

If approved, he said, it would take a broken system and entrench it as a constitutional amendment.

He offered a different solution -- also in the form of a ballot initiative -- that he believes would protect local governments from state siphoning. It also diversifies the source of tax dollars that local governments depend on, Steinberg said.

Under the current tax system, local governments are so dependent on sales tax dollars that they lure big-box stores, which he said bring sprawl and low-paying jobs. In a post-Proposition 13 world, local governments are less dependent on property taxes, he said, making them less inclined to court big employers and new housing.

"I'm all for protecting local government," Steinberg said. "It just has to be in conjunction with the general reform of what we all know is a broken system."

Now go back and read the tail-end of my previous reply, PLEASE.

[SierraWasp]

This Liberal DUmmie from Antioch (Torlackson) is after the same thing (from what forester posted above)

"Cities are fiscally constrained, and the increased reliance on the sales tax — a legacy of Proposition 13 — skews local land use incentives. Meanwhile, the state has added mandates and created additional costs for local governments."

[forester]

I am NOT wrong about the fact that local governments are being whip-sawed by the state's deliberate attempt(s) to circumvent Prop 13 by consolidating as much money, and thus power and control into Sacramento, making CA government overly "top-heavy" and thus, unstable and the state practically ungovernable!!!

Excellent point. Micro-management by the State has led to almost dependency status for rural counties. As you have pointed out before Waspman, making government the largest employer in town results in a gradual shift of the population from rugged republicans to dependent democrats. Who wants to open a business when the bureau-nazis out-number the private sector?

[SierraWasp]

Thank you, but don't let the danger of what Steinberg and Torlackson are disembling about slip past your attention and understanding!

As usual, they're mixing a little truth with a mountain of bullchit, while still blaming Prop 13 for all the problems that plague the state and implying that they actually have some kind of solution that only complicates things further.

They are so pist off that suburban communities won't help large cities with the homelessness and crime issues that they and their ilk have created, that they can't see straight!!! They will put forth a statewide ballot measure to create more "Rural Cleansing" to divert MORE REVENUE to the damned cities... and I do mean "damned!"

They are so "damned" by liberals that they are creating the very "ex-urban refugees" that are crowding out the cows that do not vote!!!

[forester]

but don't let the danger of what Steinberg and Torlackson are disembling about slip past your attention and understanding!

It hasn't. Seeing that Ernest appreciated my input, I figured I'd go further and post the source of my information on this matter, which is the government finance series of articles in Western City . (this is a better link then the one in my earlier post) The only reason I posted the Torklackson article was because he explained what ERAF was by the third paragraph.

I'm with you on Steinberg's ulterior motives. Further, I would not be surprised to learn that he is coordinating with the Bee and other news agencies to deceive the public. I think that he and the bureau-nazis are scared of this ballot intiative. It is an easy sell, local control. Without media help, Steinberg etal. will have a hard time stopping this intiative. That remains the source of my disgust.