Vital Local Services and Taxpayer Dollars At Risk

THE PROBLEM: STATE RAIDS AND BORROWING ARE JEOPARDIZING PUBLIC SAFETY, EMERGENCY RESPONSE, TRANSPORTATION, TRANSIT AND OTHER VITAL LOCAL SERVICES.
California voters have overwhelmingly passed separate ballot measures to dedicate local funding sources to essential local services and to prevent the State from shifting or raiding local government, transit and transportation funds.  Despite this, the State recently passed a budget that borrows and takes approximately $5 billion in city, county, transit, redevelopment and special district funds this year. This year’s raids and previous, ongoing state raids and borrowing are jeopardizing the services Californians need most:

• Police, fire and emergency 911 services have been cut. 
• Healthcare services for children, seniors and the disabled are being slashed.  
• Road repair and maintenance, congestion relief and safety improvements are constantly at risk.
• Public transit like buses, commuter rail and shuttles are being slashed and fares are being raised.
• Parks and libraries are closing, and other local government services critical to protect our neighborhoods and improve our quality of life are shutting down.
• Vital community economic development and job creation projects are being shut down.

State raids of local funds are fiscally irresponsible. The fiscally irresponsible practice of borrowing local taxpayer and transportation funds makes our budget problems worse down the line because local government and transportation funds have to be repaid, with interest. Additionally, many of the outright raids are ultimately rejected by the courts, creating even larger state budget deficits down the line.

THE SOLUTION:  PROHIBIT THE STATE FROM RAIDING LOCAL GOVERNMENT, TRANSIT AND TRANSPORTATION FUNDS.

The Local Taxpayer, Public Safety and Transportation Protection Act, scheduled for the November 2010 statewide ballot, would:

Prohibit the State from taking, borrowing or redirecting local taxpayer funds dedicated to public safety, emergency response and other vital local government services. The measure would close loopholes to prevent the taking of local taxpayer funds currently dedicated to cities, counties, special districts and redevelopment agencies. It would also revoke the State’s authority to borrow local government property tax funds.

Protect vital, dedicated transportation and public transit funds from state raids.  The measure would prevent State borrowing, taking or redirecting of the state sales tax on gasoline (Prop 42 funds) and Highway User Tax on gasoline (HUTA) funds that are dedicated to transportation maintenance and improvements. It would also prevent the State from redirecting or taking public transit funds.

Protect local taxpayers by keeping more of our local tax dollars local where there’s more accountability to voters, and by ensuring once and for all that our gas taxes go to fund road improvements.  The measure also reduces pressure for local tax and fee increases that become necessary when the State redirects local funds.  
Reform state government and enhance fiscal accountability. This measure is a key step in reforming California’s broken budget system by restoring more local control and accountability. It also stops the irresponsible practice of the State borrowing special funds that have to be repaid with interest, which only puts our State further in debt.