09 Staff Report - Public Safety Protection Act of 2004
DATE: TO: FROM: COUNCIL AGENDA REPORT FEBRUARY 17, 2004 MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGER MEETING DATE: 2/17/04 ITEMNO.Cj SUBJECT: ADOPT RESOLUTION SUPPORTING THE
LOCAL TAXPAYERS AND PUBLIC SAFETY PROTECTION ACT OF 2004 RECOMMENDATION: Adopt resolution supporting the Local Taxpayers and Public Safety Protection Act of2004. BACKGROUND: According
to the League ofCalifornia Cities, for more than a decade, the California State Legislature has taken away an increasing amount of local government tax dollars used to provide essential
services like public safety, emergency and public health care, roads, parks, libraries, and water delivery. Since 1991, the League estimates that California cities have provided more
than $30 billion in property tax revenue to fund the State's general fund arid other state programs. For Los Gatos, it is estimated that the Town has lost $15.4 million in various tax
revenue to the State over the past 15 years. To protect local revenue, the League in partnership with the California State Association ofCounties (CSAC) and the California Special Districts
Association (CSDA) have sponsored the Local Taxpayers and Public Safety Act, a ballot initiative that would allow voters to determine iflocal tax dollars should be used to fund state
services. DISCUSSION: The following section provides an overview of Local Taxpayers and Public Safety Protection Act of 2004 and discusses the use of public resources to support a ballot
measure. PREPARED BY: TIVE ANALYST N:\MGRlJHaruyama\Sta:a: wpd Reviewed by: Q.S3..Assistant Town
Manager Attorney. __Clerk ", Finance _"_Community Development Revised: 2/4/04 4:02 pm Reformatted: 5/30/02
PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: \-ADOPT RESOLUTION SUPPORTING THE LOCAL TAXPAYERS AND "PUBLIC SAFETY PROTECTION ACT OF 2004 February 27, 2004 Overview of Local Taxpayers and Public
Safety Protection Act of 2004 The 2004 Local Taxpayers and Public Safety Protection Actwould increase local control over local tax dollars. This measure would allow voters to have the
final say on proposed actions by the State Legislature that would further reduce local govetnnlent funding by requiring voter approval before the State could reduce funding for local
services or shift more costs to local governments. More specifically, the proposed ballot initiative does two things: • Public Vote Requirement. Requires approval by a majority of the
electorate before a proposed state law may take effect that reduces the sales, property, and Vehicle License Fee (VLF) funds of cities, counties, and special districts. • Reimbursementa/MandatedCosts
. Clarifies the State's duty to reimburse local government in a timely way for new II?-andated programs or higher levels of service to protect local governments from hidden cost shifts.
Use of Public Resources to Support a Ballot Measure Although local government and elected .officials have specific statutory authority to participate in the legislative process at the
state and federal level, their authority to take part in the ballot initiative and referlendum process is more limited. Locally elected officials can take a formal position for or in
opposition to a ballot measure. However, the state courts have ruled that public funds and resources cannot be used to advocate the passage or defeat ofa ballot measure. Instead, local
government can prepare and disseminate a fair and impartial analysis of the meaSure to the public. Town funding and/or resources will not be used to support the initiative, should the
Councilor any Town employee choose to participate in related campaign activities. CONCLUSION: To protect local government from the continued redistribution of local revenue to fund the
State General Fund and other State services, the League in partnership with the California State Association of Counties (CSAC) and the California Special Districts Association (CSDA)
have sponsored the Local Taxpayers and Public Safety Act of 2004, a ballot initiative that would allow voters to determine if local tax dollars should be used to fund state services.
Since 1991, it is estimated that the State has taken $15.4 million ofTown revenue to fund State services. Therefore, it is recommended that the Council adopt a resolution supporting
the Local Taxpayers and Public Act to prevent the further erosion oflocal revenue. Town funding and/or resources will not be used to support the initiative, should the Council
or any Town employee choose to participate in related campaign activities.
PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION SUPPORTING THE LOCAL TAXPAYERS AND PUBLIC SAFETY PROTECTION ACT OF 2004 February 27, 2004 FISCAL IMPACT; It is anticipated that
the adoption of a resolution supporting the Local Taxpayers and Public Safety Act of2004 would not have a negative fiscal impact on the Town or its residents. The Act does not raise
taxes, increase revenue to local government, or reduce state funding for State programs, including education or infrastructure; rather it would protect local services by protecting local
revenue from the State, enabling cities and counties to maintain essential services. Attachments: Attachment No.1: Resolution Supporting the Local Taxpayers and Public Safety Protection
Act of 2004 Distribution: Rebecca Elliot, League of California Cites Gillian Moran, Santa Clara County Cities Association
RESOLUTION 2004 A RESOLUTION SUPPORTING THE LOCAL TAXPAYERS AND PUBLIC SAFETY PROTECTION ACT OF 2004 WHEREAS, state government annually seizes over $800 million in local government property
tax funds (ERAF) statewide, costing cities over $6.9 billion in lost revenues over the past 12 years and seriously reducing resources available for local public safety and other services;
and WHEREAS, in adopting the state budget this· year the Legislature and Governor appropriated local vehicle license fee backfill and redevelopment property tax funds that are needed
to fInance critical city services such as public safety, parks, street maintenance, housing and economic development; and WHEREAS, the defIcit fmancing plan in the state budget depends
on a local property and sales tax swap ,that leaves city services if the' state's economic condition fails to improve; and WHEREAS, the adopted state budget assumes
an· ongoing structural budget defIcit of at least $8 billion, putting local resources and services at risk in future years to additional state revenue raids; and WHEREAS, it is abundantly
clear that state leaders will continue to use local tax funds to balance the state budget unless the voters limit the power of the Legislature and Governor to do so; and WHEREAS, the
voters of California are the best judges of whether local tax funds should be diverted, confIscated, shifted or otherwise taken to fInance an ever-expanding state govetnment; and . WHEREAS,
the General Assembly of Voting Delegates of the League of California Cities at its September 10, 2003 meeting voted to sponsor a statewide ballot. initiative to empower the voters to
limit the ability o(state government to confiscate local tax funds to fund state government; and WHEREAS, the League has requested that cities offer support for the Local Taxpayers and
Public Safety Act, a November 2004 ballot initiative that will allow voters to decide whether state government may appropriate local tax funds to fund state government operations and
responsibilities. NOW, THEREFORE, BE IT RESOLYED BY THE LOS GATOS TOWN COUNCIL expresses its strong support for the Local Taxpayers and Public Safety Act of 2004, a proposed statewide
ballot initiative to allow voters to decide whether local tax funds may be taken, confIscated, shifted, diverted or otherwise used to fund state government operations and responsibilities;
and N:\MGR\JHaruyama\StaffReports\CityResoluton.doc ATTACHMENT 1
I .----RESOLVED FURTHER, that the Town Council and staff are authorized to provide impartial informational materials on the initiative as may be lawfully provided by the Town's representatives.
No public funds shall be used to campaign for. or against the initiative; and RESOLVED FURTHER, that the residents of the Town are encouraged to become well informed on the initiative
and its possible impacts on the critical local services on which they rely; and RESOLVED FURTHER, that the Town Manager is hereby directed to send a copy to the Executive Director ofthe
League of California Cities. PASSED AND ADOPTED at a regularll.leeting of. the Town Council of the Town of Los Gatos, California held on the day of , ***, by the following vote: COUNCIL
MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: .MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS; CALIFORNIA N:\MGR\JHaruyama\StaffReports\CityReso
luton.doc