Policy & Legislation
Local Governments Launch Initiative to Protect Funding
January 13, 2010
Frustrated by the state's control over some of its funding, local governments have begun gathering signatures to qualify an initiative for the November 2010 statewide ballot.
The "Local Taxpayer, Public Safety and Transportation Protection Act" would add new constitutional restrictions to prohibit the state from:
- redirecting or taking tax increment funds collected within redevelopment areas, including funds for home development;
- borrowing local government property-tax funds; and
- redirecting or borrowing dedicated transportation and public-transit revenues.
A 2004 initiative, Proposition 1A, restricted the state's ability to borrow local property taxes. This new proposal would ban such borrowing altogether.
Both redevelopment and transit funds have been the subject of recent lawsuits in which the courts ruled illegal the state's attempt to redirect the funds. After losing the first redevelopment lawsuit, the legislature and governor devised a second method of redirecting the funds. Redevelopment agencies challenged the method, and the case is pending.
Housing California's board of directors will consider a request for support from the California Redevelopment Association at its February meeting.
For more information, visit www.savelocalservices.com.
Contact Julie Snyder, 916.447.0503 x102 or .
