HomeMy WebLinkAboutLegislative Review - SCA22 (Johnson & Torlakson) - League of CA Cities InitiativeCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: REQUEST FOR CONSIDERATION OF LEGISLATIVE REVIEW
COMMITTEE ACTION ON SCA22 (JOHNSON & TORLAKSON) AT
ITS MEETING OF APRIL 27, 2004.
DATE: May 13, 2004
CONTENTS: SCA22 LANGUAGE
Recommendation:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of April 27, 2004, and direct staff to prepare a letter of support for the Mayor's
signature with regard to SCA22 (Johnson & Torlakson) relative to the League of California
Cities Initiative.
Executive Summary:
Passage of SCA22, which is sponsored by the League of California Cities, would provide
constitutional protection for the future distribution of sales tax.
Background:
Senate Constitutional Amendment SCA22 seeks to provide various constitutional
protections of sales tax and other local revenues, which would prohibit the State from raids
on local governments in future years.
Because the City of Palm Desert supports a return of previously guaranteed funding
through the Bradley Burns Sales and Use Tax Law and other such legislation, the
Legislative Review Committee recommends that the City Council support SCA22 and direct
staff to prepare a letter stating that position to the appropriate Legislators for the Mayor's
signa
Kl�.r
PATRICIA SCULLY
SENIOR MANAGEMENT ANALYST
SHEILA R. GILL! GAN
ASSISTANT CITY M
GER
PAUL GIBSON
DIRECTOR OF FINANCE/
CITY TREASURER
CARLOS L. 0
CITY MANAGER
EGA
SCA 22 Senate Constitutional Amendment - INTRODUCED Page 1 of 10
BILL NUMBER: SCA 22 INTRODUCED
BILL TEXT
INTRODUCED BY Senators Johnson and Torlakson
(Principal coauthor: Senator Margett)
APRIL 1, 2004
Senate Constitutional Amendment No. 22--A resolution to propose to
the people of the State of California an amendment to the
Constitution of the State by amending and repealing Section 15 of,
and by adding Section 16 to, Article XI thereof, by amending Section
24 of, and adding Section 37 to, Article XIII thereof, by amending
Section 1 of Article XIII A thereof, by amending Section 6 of Article
XIII B thereof, and by amending Section 8 of Article XVI thereof,
relating to local government finance.
LEGISLATIVE COUNSEL'S DIGEST
SCA 22, as. introduced, Johnson. Local government finance: Local
Government Property Tax Protection Act of 2004.
(1) The Sales and Use Tax Law imposes a tax on the gross receipts
from the sale in this state of, or the storage, use, or other
consumption in this state of, tangible personal property.
The Vehicle License Fee (VLF) Law establishes, in lieu of any ad
valorem property tax upon vehicles, an annual license fee for any
vehicle subject to registration in this state in the amount of 2% of
the market value of that vehicle, as specified, but offsets this
amount by 67.5% for vehicle license fees with a final due date on or
after July 1, 2001. The California Constitution requires that
certain revenues derived under the Vehicle License Fee Law be
allocated to cities and counties.
This measure would repeal this constitutional allocation
requirement on July 1, 2005. This measure would also establish in
the treasury of each county a School Assistance Fund for Education
(SAFE) to receive revenues derived from specified state sales and use
tax rates and certain revenues derived under the VLF Law, as
specified by of the 2003-04 Regular Session. This measure would
require that all moneys in a county SAFE be allocated to cities,
counties, cities and counties, and school entities in a county in the
manner prescribed by of the 2003-04 Regular Session. This
measure would also specify that an act of the Legislature or the
Governor may not reduce the amount of moneys that are required to be
appropriated to county SAFEs, unless that act or another act
continuously appropriates to county SAFEs an amount of money equal to
the reduction.
(2) The California Constitution prohibits the Legislature from
imposing taxes for local purposes.
This measure would establish an exception to this prohibition for
the taxes imposed by specified statutes.
(3) The California Constitution authorizes the Legislature to
exempt certain personal and real property from ad valorem property
taxation and to classify personal property for differential property
taxation. The California Constitution also requires a county to
collect ad valorem property tax revenues derived in that county and
further requires that these revenues be allocated to districts in the
county according to law.
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SCA 22 Senate Constitutional Amendment - INTRODUCED Page 2 of 10
This measure would prohibit the Legislature from altering, as
specified, the apportionment of these revenues to local agencies, as
defined. This measure also would prohibit the Legislature from
requiring these local entities to remit any portion of these revenues
that are apportioned to these entities to the state, a fund created
by state law, or another local government without the consent of the
entity that is required to remit this revenue. This measure also
would prohibit the Legislature from exempting or classifying
property, for purposes of ad valorem property taxation, in a manner
that reduces the amount of revenue derived from property taxation
unless the Legislature continuously appropriates an equal amount of
revenue to local agencies to reimburse these entities for any revenue
losses resulting from the exemption or classification.
(4) The Bradley -Burns Uniform Local Sales and Use Tax Law
(Bradley -Burns Law) authorizes cities, counties, and cities and
counties to impose a local sales and use taxes at specified rates.
Existing law authorizes these entities to impose various other local
taxes.
This bill would prohibit the Legislature from establishing
exemptions to the taxes imposed under the Bradley -Burns Law unless
the Legislature continuously appropriates an equal amount of revenue
to cities, counties, and cities and counties to reimburse these
entities for revenue losses resulting from the exemption. This
measure also would prohibit the Legislature from restricting the
authority of these entities to impose taxes under that law and from
changing the manner in which revenues derived under that law are
distributed. With respect to the revenues derived from all other
locally imposed taxes, this measure also would prohibit the
Legislature from appropriating, reallocating, redistributing,
reducing, reapportioning, suspending, or delaying the receipt of
revenues by a local government imposing these taxes.
(5) Under the California Constitution, whenever the Legislature or
a state agency mandates a new program or higher level of service on
any local government, the state is required to provide a subvention
of funds to reimburse the local government, with specified
exceptions. Existing statutory law establishes a procedure for local
government agencies to file claims for reimbursement of these costs
with the Commission on State Mandates.
This measure also would provide that, for purposes of these
provisions, the Legislature or any state agency mandates a new
program or higher level of service only when it establishes a new
mandated program, otherwise requires the provision of services not
previously required, increases the frequency or duration of required
services, increases the number of persons eligible to receive
required services, or transfers complete or partial financial
responsibility for a program from the state to local government.
This measure would, for the initial fiscal year in which a local
government incurs costs for which reimbursement is required, require
the state to subvene funds to reimburse those costs on or before the
end of the fiscal year in which the mandate becomes operative, or, if
the requirement to provide a subvention is contested, on or before
the end of the fiscal year in which the Commission on State Mandates,
any successor to the commission, or a court that a subvention is
required. It would require the Legislature to appropriate sufficient
funds to provide this subvention in the annual Budget Act or other
statute. It would, for reimbursable costs that are incurred in each
fiscal year subsequent to the initial fiscal year, require the state
to provide the subvention annually, and the Legislature to
appropriate sufficient funds to provide this annual subvention in the
Budget Act for each subsequent fiscal year.
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SCA 22 Senate Constitutional Amendment - INTRODUCED Page 3 of 10
This measure also would, if the Legislature does not appropriate
sufficient funds to provide the subvention required for the initial
fiscal year or any subsequent fiscal year, allow a local government
to elect to continue to perform the mandate and receive reimbursement
thereafter, or to suspend performance of the mandate until the state
provides the required subvention. It would, however, prohibit a
local government from suspending a mandate that requires the local
government to provide or recognize any procedural or substantive
protection, right, benefit, or employment status of any local
government employee or retiree or of any local government employee
organization, that arises from, affects, or directly relates to
future, current, or past local government employment.
(6) The California Constitution requires that, from all state
revenues, there first be set apart the funds to be applied by the
state for support of the public school system and public institutions
of higher education. These provisions require that the funds to be
applied for the support of school districts and community college
districts not be less than the greater of amounts calculated under 3
different tests: (a) as a percentage of General Fund revenues
appropriated for school districts and community college districts for
the 1986-87 fiscal year, (b) as the amount required to ensure that
the total allocations to school districts and community college
districts from General Fund proceeds of taxes and allocated local
proceeds of taxes is not less than the total amount from other
sources in the prior year adjusted for changes in enrollment and cost
of living, operative when the percentage growth in personal income
is less than or equal to the percentage growth in General Fund
revenues, or (c) as the amount calculated pursuant to (b), but
adjusted for changes in enrollment and the change in per capita
General Fund revenues, operative when the percentage growth in
personal income is greater than the percentage growth in General Fund
revenues.
This measure would, for purposes of these provisions, classify the
revenues derived from specified tax rates that are required to be
appropriated to county SAFEs pursuant to this measure as "local
proceeds of taxes" rather than "General Fund revenues."
(7) This measure would provide that it shall be submitted to the
voters only if of the 2003-04 Regular Session is chaptered.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2003-04 Regular Session
commencing on the second day of December 2002, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California that the Constitution of the State be
amended as follows:
First --That this measure shall be known and may be cited as the
Local Government Property Tax Protection Act of 2004.
Second --That the people of the State of California find and declare
all of the following:
(a) People have the most power to control government at the local
level. This is the essence of home rule.
(b) Local government is far more efficient and responsible than
state government in the use of tax revenues.
(c) Police protection, fire protection, local community services,
and schools must have an adequate, reliable, and guaranteed source of
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SCA 22 Senate Constitutional Amendment - INTRODUCED Page 4 of 10
funding.
(d) Historically, local property tax revenues were used to pay for
local community services. These local tax revenues have been taken
by the state government, leaving local governments with a very small
share of local property tax revenue, only 16 percent on average.
(e) Allowing local communities to keep more of their local
property tax revenues will safeguard funds for police and fire
protection and other vital services.
(f) Making property tax revenues the principal source of local
government revenues will require new residents in a community to pay
their fair share of police, fire, parks, health care and other
municipal services by contributing their property taxes to the city
and county where they live.
(g) The Legislature has approved laws that divert, use, or delay
the payment of local tax revenues to local governments, which laws
threaten funding for public safety, public health, parks, libraries,
street maintenance, housing, and economic development. This practice
must end.
(h) The state government must reimburse local governments when it
mandates any new program or higher level of service, and when it
reallocates of redistributes to a state -created fund revenues that
were previously allocated to local governments.
Third --That Section 15 of Article XI thereof is amended to read:
SEC. 15. (a) All revenues from taxes imposed pursuant to the
Vehicle License Fee Law, or its successor, other than fees on trailer
coaches and mobilehomes, over and above the costs of collection and
any refunds authorized by law, shall be allocated to counties and
cities according to statute.
(b) This section shall apply applies
to those taxes imposed pursuant to that law on and after July 1
following the approval of this section by the voters.
(c) This section is repealed on July 1, 2005.
Fourth --That Section 16 is added to Article XI thereof, to read:
SEC. 16. (a) (1) A School Assistance Fund for Education is
hereby created in the treasury of each county and city and county to
receive those revenues specified in Section 30024 of the Government
Code or any successor to that section.
(2) Each county auditor shall allocate money in the county School
Assistance Fund for Education only for the purposes specified in, and
only in the manner specified in, Chapter 6.3 (commencing with
Section 30020) of Division 3 of Title 3 of the Government Code and
Sections 97.68 and 97.70 of the Revenue and Taxation Code, as added
by of the 2003-04 Regular Session.
(b) An act of the Legislature or the Governor may not reduce the
amount of money that is required to be deposited in each county's
School Assistance Fund for Education unless that act or another act
continuously appropriates to that fund an amount of money equal to
the amount of money that is not deposited in that fund as a result of
that act.
Fifth --That Section 24 of Article XIII thereof is amended to read:
SEC. 24. Th (a) (1) Except for the
taxes imposed by Sections 6051.7, 6051.9, 6201.7, 6201.9, and 10752
of the Revenue and Taxation Code, or any successor to any of those
sections, the Legislature may not impose taxes for local
purposes but may authorize local governments to impose them.
M n y
(2) Money appropriated from state funds to a local
government for its local purposes may be used as provided by law.
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SCA 22 Senate Constitutional Amendment INTRODUCED Page 5 of 10
M n y
(3) Money subvened to a local government under Section 25
may be used for state or local purposes.
(b) The Legislature may not do any of the following:
(1) With respect to the Bradley -Burns Uniform Local Sales and Use
Tax Law set forth in Part 1.5 (commencing with Section 7200) of
Division 2 of the Revenue and Taxation Code, as that law read on July
1, 2005:
(A) Restrict the authority of a city, county, or city and county
to impose a rate under that law.
(B) Change the method of distributing revenue derived under that
law.
(C) Establish an exemption to the taxes imposed under that law
without continuously appropriating money to a city, county, or city
and county to reimburse that city, county, or city and county, during
any period in which the exemption is operative, for any revenue loss
resulting from that exemption.
(2) With respect to revenue derived from any local tax, including,
but not limited to, a business license tax, a transient occupancy
tax, and a utility user tax, that is imposed by a local agency,
appropriate, reallocate, redistribute, reduce, reapportion, suspend,
or delay the receipt by the imposing local agency of revenue derived
from that tax.
Sixth --That Section 37 is added to Article XIII thereof, to read:
SEC. 37. The Legislature may amend Chapter 6.3 (commencing
with Section 30020) of Division 3 of Title 3 of the Government Code
and Sections 97.68, 97.69, 97.70, 6051.7, 6051.9, 6201.7, 6201.9, and
11007 of the Revenue and Taxation Code, as added by of the
2003-04 Regular Session, and the amendments made to Sections 7202,
7203, and 7203.1 of the Revenue and Taxation Code by of the
2003-04 Regular Session, only if both of the following conditions are
met:
(a) The amendment is contained in a statute that is approved by a
rollcall vote entered in the journal, two-thirds of the entire
membership of each house concurring.
(b) The amendment furthers the purpose of the measure adding this
section to this Constitution, which is to provide an adequate,
reliable, an guaranteed source of funding to local agencies to
finance public safety, public health, parks, libraries, street
maintenance, housing, economic development, and other vital community
services.
Seventh --That Section 1 of Article XIII A thereof is amended to
read:
SECTION 1. (a) The maximum amount of any ad valorem tax on
real property shall may not exceed
—Ono 1 percent (1%)
of the full cash value of ouch the
property. The -enn— 1 percent
(1%) tax -te-- shall be
collected by the counties and apportioned acc rding t law
to the districts jurisdictions
within the counties in the manner specified in subdivision
(b)
(b) (1) For the 2005-06 fiscal year and each fiscal year
thereafter, the county auditor shall apportion the tax revenue
collected by a county under subdivision (a), or statutorily
equivalent revenue for purposes of an advance of revenues required by
Chapter 6.3 (commencing with Section 30020) of Division 3 of Title 3
of the Government Code, in accordance with the following:
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SCA 22 Senate Constitutional Amendment - INTRODUCED Page 6 of 10
(A) With respect to a local agency, in the proportion prescribed
by Chapter 6.3 (commencing with Section 30020) of Division 3 of Title
3 of the Government Code and Sections 97.68 and 97.70 of the Revenue
and Taxation Code, as added by of the 2003-04 Regular Session.
(B) With respect to other jurisdictions in the county, in the
proportion otherwise prescribed by statute.
(2) This subdivision does not prohibit the Legislature from
increasing the share of the property tax revenue collected by a
county under this subdivision that is apportioned to a local agency.
(c) With respect to the local property tax revenue that is
collected by a county under subdivision (a), the Legislature may not
do any of the following
(1) On or before June 30, 2005, apportion this revenue in a manner
that reduces, suspends, or delays the receipt by a local agency of
the proportionate share of this revenue that would have been
apportioned to that local agency under the statutes in effect on
January 1, 2004.
(2) Require a local agency to remit any portion of this revenue
that is apportioned to that agency in any fiscal year to any of the
following:
(A) The State.
(B) A fund created by state law, regardless of whether the fund is
in the State Treasury or the treasury of a local government.
(C) Another local government without the consent of the local
agency that is required to remit these revenues.
(3) For purposes of ad valorem property taxation, establish an
exemption or classification of property that reduces the amount of
revenue derived from this taxation without continuously appropriating
money to a local agency to reimburse that local agency, during any
period in which the exemption or classification is operative, for any
revenue loss resulting from that exemption or classification.
(d) For purposes of subdivisions (b) and (c) , both of the
following apply:
(1) "Local agency" means a city, a county, a city and county, and
a special district.
(2) "Special district" means an agency of the State, formed
pursuant to general law or special act, for the local performance of
governmental or proprietary functions within limited geographic
boundaries, but not including a school district, a county office of
education, or a community college district.
(e) The rate limitation provided for in
subdivision (a) Ehall does not apply to
ad valorem taxes or special assessments to pay the interest and
redemption charges on any of the following:
(1) Indebtedness approved by the voters prior to July 1, 1978
(2) Bonded indebtedness for the acquisition or improvement of real
property approved on or after July 1, 1978, by two-thirds of the
votes cast by the voters voting on the proposition.
(3) Bonded indebtedness incurred by a school district, community
college district, or county office of education for the construction,
reconstruction, rehabilitation, or replacement of school facilities,
including the furnishing and equipping of school facilities,,or the
acquisition or lease of real property for school facilities, approved
by 55 percent of the voters of the district or county, as
appropriate, voting on the proposition on or after the effective date
of the measure adding this paragraph. This paragraph shall apply
only if the proposition approved by the voters and resulting in the
bonded indebtedness includes all of the following accountability
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SCA 22 Senate Constitutional Amendment - INTRODUCED Page 7 of 10
requirements:
(A) A requirement that the proceeds from the sale of the bonds be
used only for the purposes specified in Article XIII A, Section 1(b)
(3), and not for any other purpose, including teacher and
administrator salaries and other school operating expenses.
(B) A list of the specific school facilities projects to be funded
and certification that the school district board, community college
board, or county office of education has evaluated safety, class size
reduction, and information technology needs in developing that list.
(C) A requirement that the school district board, community
college board, or county office of education conduct an annual,
independent performance audit to ensure that the funds have been
expended only on the specific projects listed.
(D) A requirement that the school district board, community
college board, or county office of education conduct an annual,
independent financial audit of the proceeds from the sale of the
bonds until all of those proceeds have been expended for the school
facilities projects.
(c)
(f) Notwithstanding any other provisions of law or of this
Constitution, school districts, community college districts, and
county offices of education may levy a 55 percent vote ad valorem tax
pursuant to paragraph (3) of subdivision (k)
(e) .
Eighth --That Section 6 of Article XIII B thereof is amended to
read:
SEC. 6. (a) Whenever the Legislature or any state
agency mandates, a new program or higher level of service on any local
government, the State shall provide a subvention of funds to
reimburse such the local government for
the costs of cuch the program or
increased level of service, except that the Legislature may, but need
not, provide such subvention of funds for the following mandates:
a)
(1) Legislative mandates requested by the local agency
affected --- .
(b)
(2) Legislation defining a new crime or changing an existing
definition of a crime r
(c)
(3) Legislative mandates enacted prior to January 1, 1975,
or executive orders or regulations initially implementing legislation
enacted prior to January 1, 1975.
(b) (1) For the initial fiscal year in which a local government
incurs costs for which reimbursement is required by subdivision (a),
the State shall subvene funds to reimburse those costs on or before
the last day of the fiscal year in which the mandate becomes
operative, or, if the requirement to provide a subvention is
contested, on or before the last day of the fiscal year in which the
Commission on State Mandates, any successor to the commission, or a
court makes a final determination that a subvention is required. The
Legislature shall appropriate sufficient funds to provide this
subvention in the annual Budget Act or other statute.
(2) For costs for which reimbursement is required that are
incurred in each fiscal year subsequent to the initial fiscal year, a
local government seeking reimbursement shall submit an annual claim,
and the State shall provide an annual subvention of funds. The
Legislature shall appropriate sufficient funds to provide this annual
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SCA 22 Senate Constitutional Amendment - INTRODUCED Page 8 of 10
subvention in the Budget Act for that subsequent fiscal year.,
(c) (1) If, for any claim for reimbursement for which the
Commission on State Mandates, any successor to the commission, or a
court has made a final determination that a subvention of funds is
required, the Legislature has not appropriated funds sufficient for
full reimbursement of costs incurred in the initial fiscal year as
required by paragraph (1) of subdivision (b), or for costs incurred
in any subsequent fiscal year as required by paragraph (2) of
subdivision (b), then the affected local government may do either of
the following:
(A) Continue to perform the mandate, in which case the local
government shall be reimbursed for its costs to perform the mandate
through a subsequent appropriation and subvention of funds.
(B) (i) Except as prohibited by clause (ii) , suspend performance
of the mandate until, pursuant to an appropriation of sufficient
funds, the State provides the subvention required by this section. A
local government shall be reimbursed for its costs for any portion
of the fiscal year during which it performs the mandate.
(ii) A requirement to provide or recognize any procedural or
substantive protection, right, benefit, or employment status of any
local government employee or retiree, or of any local government
employee organization, that arises from, affects, or directly relates
to future, current, or past local government employment and that
constitutes a mandate subject to this section, may not be suspended
by a local government pursuant to this subdivision.
(d) For purposes of this section, the Legislature or a state
agency mandates a new program or higher level of service only when it
establishes a new program, otherwise requires the provision of
services not previously required, increases the mandated frequency or
duration of required services, increases the number of persons
eligible to receive required services, or transfers complete or
partial financial responsibility for a program from the state to
local government.
Ninth --That Section 8 of Article XVI thereof is amended to read:
SEC. 8. (a) From all state revenues there shall first be set
apart the moneys to be applied by the State for support of the public
school system and public institutions of higher education.
(b) Commencing with the 1990-91 fiscal year, the moneys to be
applied by the State for the support of school districts and
community college districts shall be not less than the greater of the
following applicable amounts:
(1) The amount which, as a percentage of General Fund revenues
which may be appropriated pursuant to Article XIII B, equals the
percentage of General Fund revenues appropriated for school districts
and community college districts, respectively, in fiscal year
1986-87.
(2) The amount required to ensure that the total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B and
allocated local proceeds of taxes chall n t b
is not less than the total amount from these sources in the
prior fiscal year, excluding any revenues allocated pursuant to
subdivision (a) of Section 8.5, adjusted for changes in enrollment
and adjusted for the change in the cost of living pursuant to
paragraph (1) of subdivision (e) of Section 8 of Article XIII B.
This paragraph chall b is operative
only in a fiscal year in which the percentage growth in California
per capita personal income is less than or equal to the percentage
growth in per capita General Fund revenues plus n half
one-half of -o - 1
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SCA 22 Senate Constitutional Amendment - INTRODUCED Page 9 of 10
percent.
(3) (A) The amount required to ensure that the total allocations
to school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B and
allocated local proceeds of taxes shall equal the
total amount from these sources in the prior fiscal year, excluding
any revenues allocated pursuant to subdivision (a) of Section 8.5,
adjusted for changes in enrollment and adjusted for the change in per
capita General Fund revenues.
(B) In additi n, There shall be added to
the amount computed pursuant to subparagraph (A) an amount
equal to one-half of - ne 1 percent
times the prior year total allocations to school districts and
community colleges from General Fund proceeds of taxes appropriated'
pursuant to Article XIII B and allocated local proceeds of taxes,
excluding any revenues allocated pursuant to subdivision (a) of
Section 8.5, adjusted for changes in enrollment.
(C) This paragraph (3) shall b is
operative only in a fiscal year in which the percentage growth in
California per capita personal income in a fiscal year is greater
than the percentage growth in per capita General Fund revenues plus
on half one-half of -ono
1 percent.
(c) In any fiscal year, if the amount computed pursuant to
paragraph (1) of subdivision (b) exceeds the amount computed pursuant
to paragraph (2) of subdivision (b) by a difference that exceeds
—cno 1 and one-half percent of General
Fund revenues, the amount in excess of one and one-half percent of
General Fund revenues shall not be considered allocations to school
districts and community colleges for purposes of computing the amount
of state aid pursuant to paragraph (2) or —3.
(3) of subdivision (b) in the subsequent fiscal year.
(d) In any fiscal year in which school districts and community
college districts are allocated funding pursuant to paragraph (3) of
subdivision (b) or pursuant to subdivision (h), they shall be
entitled to a maintenance factor, equal to the difference between (1)
the amount of General Fund moneys which would have been appropriated
pursuant to paragraph (2) of subdivision (b) if that paragraph had
been operative or the amount of General Fund moneys which would have
been appropriated pursuant to subdivision (b) had subdivision (b) not
been suspended, and (2) the amount of General Fund moneys actually
appropriated to school districts and community college districts in
that fiscal year.
(e) The maintenance factor for school districts and community
college districts determined pursuant to subdivision (d) shall be
adjusted annually for changes in enrollment, and adjusted for the
change in the cost of living pursuant to paragraph (1) of subdivision
(e) of Section 8 of Article XIII B, until it has been allocated in
full. The maintenance factor shall be allocated in a manner
determined by the Legislature in each fiscal year in which the
percentage growth in per capita General Fund revenues exceeds the
percentage growth in California per capita personal income. The
maintenance factor shall be reduced each year by the amount allocated
by the Legislature in that fiscal year. The minimum maintenance
factor amount to be allocated in a fiscal year shall be equal to the
product of General Fund revenues from proceeds of taxes and one-half
of the difference between the percentage growth in per capita General
Fund revenues from proceeds of taxes and in California per capita
personal income, not to exceed the total dollar amount of the
maintenance factor.
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SCA 22 Senate Constitutional Amendment - INTRODUCED Page 10 of 10
(f) For purposes of this section, "changes in enrollment" shall be
measured by the percentage change in average daily attendance.
However, in any fiscal year, there shall be no adjustment for
decreases in enrollment between the prior fiscal year and the current
fiscal year unless there have been decreases in enrollment between
the second prior fiscal year and the prior fiscal year and between
the third prior fiscal year and the second prior fiscal year.
(g) Notwithstanding any other provision of law, for purposes of
this section and Section 41202 of the Education Code, or any
successor to that statute, the revenues derived from the tax rate
imposed by Sections 6051.7, 6051.9, 6201.7, 6201.9, and 10752 of the
Revenue and Taxation Code that are required by of the 2003-04
Regular Session to be appropriated to a county School Assistance Fund
for Education are "local proceeds of taxes" and not "General Fund
revenues."
(h) Subparagraph (B) of paragraph (3) of subdivision (b) may be
suspended for one year only when made part of or included within any
bill enacted pursuant to Section 12 of Article IV. All other
provisions of subdivision (b) may be suspended for one year by the
enactment of an urgency statute pursuant to Section 8 of Article IV,
provided that the urgency statute may not be made part of or included
within any bill enacted pursuant to Section 12 of Article IV.
Tenth --That the Legislature shall pass all laws necessary to carry
out the provisions of this measure.
Eleventh --That this measure shall be liberally construed to
effectuate its purpose of providing an adequate, reliable, and
guaranteed source of funding to local agencies to finance public
safety, public health, parks, libraries, street maintenance, housing,
economic development, and other vital community services.
Twelfth --That the provisions of this measure are severable. If any
provision of this measure or application of the provisions of this
measure is held invalid, that invalidity does not affect other
provisions or applications that can be given effect without the
invalid provision or application.
Thirteenth --That this measure shall be submitted to the voters only
if of the 2003-04 Regular Session is chaptered and, in that
event, shall, if approved by the voters, become operative on the date
upon which that bill is chaptered or the effective date of this
measure, whichever is later.
http://info.sen.ca.gov/pub/bill/sen/sb_0001-0050/sca 22_bi11_20040401_introduced.html 4/3/2004