Greg Larson, Los Gatos Town Manager and former Chief of Staff for Steve Westly, State Comptroller will present the California League of Cities initiative to limit state takings of tax revenues collected or dedicated to local governments. This proposal would provide stricter controls than the California Forward proposition on the subject but does not include optional sales tax authority available collaborations of local governments under the CAForward initiative.

Ballot Measure Filed to Protect Funding for Public Safety, Transportation, Redevelopment, Transit and Other Vital Local Services

On Tuesday, Oct. 20, a coalition, which includes the League, local government , transportation and public transit leaders filed a ballot measure initiative - the Local Taxpayer, Public Safety and Transportation Protection Act - with the California Attorney General's office . The coalition is working to have this measure placed on the statewide ballot for November 2010.

The measure, if passed by voters, would close loopholes and prevent the state from borrowing, raiding or otherwise redirecting local government (local taxes, property taxes, redevelopment), transportation (HUTA and Prop. 42 funds) and public transit funds.

Background

More than 300 city officials and 200 county and school board officials participated in a historic summit this summer on the need for state governance and fiscal reform. Summit participants selected "Local Revenue Protection" as the highest reform priority.

Many city officials also attended the League's annual conference last month in San Jose where voting delegates unanimously voted to support the League's co-sponsorship of a ballot measure for November 2010 to tighten protections of city and transportation revenues.

No one doubts the need for this measure after the state came dangerously close to stealing $1 billion in local gas tax revenues and then actually borrowed $2 billion in local property taxes, seized billions in redevelopment agency funds and took $697 million of transit funds.

Ballot Measure Details

The ballot that was filed by the growing coalition working to protect local revenues and local services would:

Prohibit the state from taking, borrowing or redirecting local taxpayer funds dedicated to public safety, emergency response and other vital local government services (including redevelopment). The measure would close loopholes to prevent the taking of local taxpayer funds currently dedicated to cities, counties and special districts. It would also revoke the state's authority to borrow local government property tax funds or divert local redevelopment funds.

Protect vital, dedicated transportation and public transit funds from state raids . The measure would prevent state borrowing, taking or redirecting of the state sales tax on gasoline (Prop.42 funds) and Highway User Tax on gasoline (HUTA) funds that are dedicated to transportation maintenance and improvements. It would also prevent the state from redirecting or taking public transit funds.

Next Steps

Filing the measure with the Attorney General's office is just the first step in a long and expensive process of qualifying a measure for the November 2010 ballot and securing voter approval. The coalition will receive the official Title and Summary in late November or early December 2009. At that time, the coalition can proceed with collecting the approximately 1 million signatures needed to qualify for the November 2010 ballot.

With the state continuing to raid and borrow local government, transit and transportation funds, this measure is desperately needed to protect taxpayers and the vital local government and transportation services that support our quality of life and economy.

Grassroots organization and fundraising will be paramount to the success of this measure if it moves forward. The strength of interest and commitment to signature gathering and fundraising by city officials is the most important factor to the League board in determining whether to support gathering signatures and filing one of the measures.

The coalition released its announcement of the filing of the measure on Oct. 20. It's posted on the League's Web site.

Although, two alternative versions of the ballot measure were actually filed, their content is virtually identical. The major difference is formatting. Copies of the short and long versions of the ballot measures filed with the Attorney General are posted on the League's Web site.

Additional information is posted on the coalition's campaign Web site at www.savelocalservices.com. City officials are urged to only visit this Web site from a private computer and not on city time.

The League will continue to update city officials with further developments through the regional public affairs managers, City Advocate Weekly and the listservs.