Local Government Publications

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Handout

Governor’s May Revision: Funding for Local Law Enforcement Training and Traffic Amnesty Program

May 17, 2015 -

Report

The 2015-16 Budget: Paying for a State Mandate on Local Child Protective Agencies

February 24, 2015 - This report evaluates the Governor's budget proposal to suspend the Interagency Child Abuse and Neglect Investigation Reports(ICAN) mandate. To address certain limitations in the Governor's proposal, we recommend the Legislature (1) adopt the Governor’s proposal but consider augmenting the grant program’s funding to increase the likelihood of county participation, (2) require local law enforcement agencies to carry out ICAN activities as a condition of receiving certain state allocations, and (3) develop a long-term plan to retire post-2004 mandate backlog, including ICAN claims.

Report

Property Tax Reductions to Diminish as Housing Market Improves

May 5, 2014 - During the recession, residential and commercial real estate values declined throughout California. As a result, many property owners received temporary property tax reductions as authorized by Proposition 8 (1978). In 2013-14, 3.2 million properties—about one-quarter of all properties in California—received a temporary property tax reduction. In total, temporary property tax reductions lowered local government property tax revenues by an estimated $7 billion in 2013-14, amounting to 15 percent of total property tax revenues statewide. However, real estate markets have recovered significantly over the past two years, and property tax payments for many of these property owners increased by as much as 20 percent in 2013-14. Going forward, we expect property tax payments for these owners to increase faster than 2 percent annually for several years. These increases likely will cause local property tax revenues to grow swiftly over the next several years as well.

Report

A Look at Voter-Approval Requirements for Local Taxes

March 20, 2014 - For about 100 years, California’s local governments generally could raise taxes without directly securing their residents’ consent. Beginning in 1978, the state’s voters amended the California Constitution several times to require that local government tax increases be approved by local voters. Recently, the Legislature has shown interest in exploring changes to voter-approval requirements for local taxes. Several proposals to place changes before the voters have been introduced during the current legislative session. This report was developed to provide context for discussions about changing these requirements. After a brief introduction to local governments in California, the report (1) summarizes the state's existing system of voter-approval requirements for local taxes, (2) explains how the state's complex voter-approval system evolved, and (3) reviews outcomes of local tax elections over the past 15 years.

Report

The 2014-15 Budget: Changes to a Local Infrastructure Financing Tool

March 11, 2014 - In 1990, the Legislature authorized cities and counties to form infrastructure financing districts to fund local infrastructure projects. Over the last couple decades, cities and counties rarely have used infrastructure financing districts. Instead, they have opted to use alternative methods to fund infrastructure, including using redevelopment agency funds. The dissolution of redevelopment agencies in 2011 has prompted calls for a review of the financing tools available to local governments to fund infrastructure and local economic development. The Governor’s 2014-15 budget proposes several changes to infrastructure financing districts which are intended to provide local governments with enhanced options to fund infrastructure and local economic development, as well as various other types of initiatives, such as urban infill, transit oriented development, and affordable housing. This report (1) describes the Governor’s proposal, (2) comments on various aspects the proposal, and (3) offers recommendations for the Legislature to consider.

Handout

Nonprofits and the Property Tax

February 3, 2014 - Presented to Assembly Local Government; Housing and Community Development; and Revenue and Taxation Committees.

Presentation

Overview and History of State Mandates

December 10, 2013 - Presented to: Assembly Local Government Committee December 10, 2013

Report

Analysis of Newly Identified Mandates

May 31, 2013 - Pursuant to Chapter 1124, Statutes of 2002 (AB 3000, Committee on Budget)

Handout

Voter-Approval Requirements for Local Taxes

April 8, 2013 - Presented to Assembly Revenue and Taxation Committee

Report

Insufficient ERAF: Examining a Recent Issue in Local Government Finance

December 18, 2012 - Over the last two years, an unanticipated funding shortfall in Amador and San Mateo Counties cut city and county reimbursements for two complex state-local financial transactions: the triple flip and VLF swap. It is likely this funding insufficiency, commonly called insufficient ERAF, will continue in future years, requiring state action if the affected local governments are to receive their full triple flip and VLF swap payments. In addressing claims of insufficient ERAF in future years, the Legislature will be faced with the difficult decisions of how much compensation cities and counties should receive and how the compensation should be provided. In this report we describe the causes and potential future development of insufficient ERAF and outline a framework that could be used in developing a remedy for insufficient ERAF.

Presentation

Major Milestones: Over Four Decades of the State-Local Fiscal Relationship

November 29, 2012 - This is an updated version of a graphic depicting the major milestones in the state-local fiscal relationship over the past 40 years. The latest version has been updated to reflect recent elections, 2011 realignment, and the dissolution of redevelopment and expanded to include milestones related to education finance. Note: The PDF file has three pages. The first page contains the entire graphic and will print on one sheet of paper, such as 8.5 x 11 (letter) or 8.5 x 14 (legal). The second and third pages each contain one half of the graphic and can be joined together for a larger copy of the graphic.

Report

Local Government Bankruptcy in California: Questions and Answers

August 7, 2012 - Recently, three California municipalities filed for bankruptcy relief under Chapter 9 of the federal bankruptcy code: Stockton, San Bernardino, and Mammoth Lakes. These filings—occurring just months after the City of Vallejo completed its three year Chapter 9 process—have raised questions about the use of Chapter 9 in California. In this report, we answer some of the common questions about the Chapter 9 process for California local governments such as: which local governments are allowed to file for bankruptcy protections and under what circumstances, what are the major steps of the bankruptcy process, and what types of obligations can be changed or eliminated through bankruptcy.

Handout

Property Tax Agents at the Local Level in California: An Overview

June 20, 2012 - Presented to Revenue and Taxation Committee, Hon. Henry T. Perea, Chair and Assebmly Local Government Committee, Hon. Cameron Smyth, Chair

Handout

Non-Education Mandates and the 2012-13 State Budget

March 13, 2012 - Assembly Budget Subcommittee No. 4 on State Administration, Hon. Joan Buchanan, Chair

Report

The 2012-13 Budget: Unwinding Redevelopment

February 17, 2012 - On February 1, 2012, all redevelopment agencies in California were dissolved and the process for unwinding their financial affairs began. Given the scope of these agencies' funds, assets, and financial obligations, the unwinding process will take time. This report reviews the history of RDAs, the events that led to their dissolution, and the process communities are using to resolve their financial obligations. The report recommends the Legislature amend the redevelopment dissolution legislation to address timing issues, clarify the treatment of pass–through payments, and address key concerns of redevelopment bond investors.

Local Government Staff

Ann Hollingshead
(916) 319-8305
State Budget and Federal Funding
 
Lourdes Morales
(916) 319-8320
Local Government, Housing, and Homelessness
 
Nick Schroeder
(916) 319-8314
Public Employment, CalPERS, and Elections
 
Angela Short
(916) 319-8309
Teachers' Retirement Policy/ Child Welfare/ Community Care Licensing
 
Brian Weatherford
(916) 319-8337
Corporation Tax and Insurance
 
Seth Kerstein
(916) 319-8365
Sales and Excise Taxes and Demographics