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February 22, 1995 - The Governor's 1995-96 State-County Realignment Proposal
July 21, 1994 - The California Constitution Revision Cornmission has identified as its first priority a review of the state and local government program and financing relationship. In 1993, the Legislative Analyst's Office proposed a model-called Making Govemment Make Sense (MGMS)-or restructuring this state and local government relationship. This handout describes the three-step approach we took in developing the MGMS model.
June 9, 1994 - On November 2, 1993, California voters enacted Proposition 172, which established a permanent statewide half-cent sales tax for support of local public safety functions in cities and counties. This Policy Brief reviews how counties—the primary beneficiaries of Proposition 172—have budgeted these new funds in 1993-94 and assesses the impact of public safety several maintenance of effort requirements on county budgets.
February 23, 1994 - The 1994-95 Governor's Budget proposes a major restructuring of the fiscal relationship between the state and California's 58 county governments. This proposal would increase county governments' responsibilities for funding a variety of health and welfare programs, and transfer a corresponding amount of state resources to the counties. The Governor's proposal is similar in many respects to a restructuring proposal offered by this office last year. To assist the Legislature in pursuing its restructuring agenda, we outline the elements of the Governor's proposal, and evaluate its fiscal implications. We offer modifications to the proposal to correct the weaknesses we identify. Finally, we suggest that the Legislature needs to consider the state's restructuring needs within a long-term context.
October 1, 1993 - Common Cents—Background Material on State and Local Government Finances
June 1, 1993 - In this brief, we review the existing authority of counties to raise the local sales tax, and the viability of this proposed method for offsetting the county revenue losses associated with the proposed property tax shift. As we concluded in our May Revision analysis, the proposals to offset county property tax revenue losses fall short. The revenue likely to be generated from additional local sales taxes—if these taxes are put on the ballot, passed by the voters, and survive likely legal challenges—would offset less than 20 percent of counties’ revenue loss, on average, in 1993-94.
May 1, 1993 - We propose realigning responsibility for various state and local programs. It is our belief that the proposal enhances the flexibility of counties and their control of program operations. We provide an alternative that accomplishes both objectives. Our proposal saves $1.4 billion in state costs by shifting various program costs to counties (consistent with our overall restructuring model), and funds these added local costs through the extension of the half cent sales tax on a transitional basis.
February 1, 1993 - Restructuring Government in California
February 1, 1993 - California's existing "system" of government does not work together to achieve the public's goals. We offer a model of a rational organization (or "realignment") of state, county, city, and special district responsibilities.
February 1, 1993 - Property taxes are the largest source of general purpose revenue available to local governments. Cities, counties, special districts, and redevelopment agencies depend upon these revenues to provide a wide variety of programs and services to California residents. In the following pages, we discuss (1) the impact of the proposed property tax shift on local government revenues and programs, (2) the ability of local governments to raise revenues to offset property tax losses, and (3) the impact of the transfer of property taxes on land development proposals.
February 1, 1992 - The state and local program realignment legislation enacted in 1991 represents a fundamental change in the state and county fiscal relationship. In this piece, we (1) provide background on the evolution of the legislation, (2) review its primary components, (3) assess its likely programmatic and fiscal effects, and (4) identify realignment-related implementation and policy issues we believe the Legislature will face in the current legislative session and in later years. Finally, we identify program areas where we believe the Legislature might effectively extend some of the legislation's features to enact further reforms.
February 1, 1992 - Enterprise Special Districts
February 1, 1992 - In this analysis, we (1) review the short-term implementation issues surrounding Chapter 90 and the related measures, and (2) identify a number of policy issues that the Legislature will need to address as it considers providing additional support for the trial courts for the budget year and beyond.
February 1, 1991 - Over the past several years, many of California's counties have experienced increasing financial stress. While Butte County is perhaps the most visible example of recent county financial troubles, our analysis indicates that the problem is inherent to the existing arrangement of state and county responsibilities and affects all counties to greater or lesser extent. The existing county-state partnership suffers from a variety of structural problems—such as program fragmentation, counter-productive fiscal incentives, and the inappropriate division of responsibilities—that both diminish the effectiveness of these programs and reduce the financial viability of county governments