Ballot Measure Filed to Protect Local Funding for Public Safety, Emergency Response, Road Improvements and Public Transit

Groups Considering November 2010 Statewide Initiative to Stop State Raids and Borrowing of Local Government, Transit and Transportation Funding 

For Immediate Release: October 20, 2009
 
Sacramento, CA – Today, a coalition of local government, transportation and public transit leaders filed a ballot measure, called the Local Taxpayer, Public Safety and Transportation Protection Act with the California Attorney General’s office. The measure would close loopholes and prevent the State from borrowing, raiding or otherwise redirecting local government, transportation and public transit funds.  Two similar versions of the measure have been filed.  If the group decides to proceed to qualify one of the two initiatives via signature gathering, it would appear on California’s November 2010 statewide ballot.

“California voters have overwhelmingly passed ballot measures to protect funding for public safety, emergency 911 response and other local government services,” said Chris McKenzie, Executive Director of the League of California Cities and co-chair of Californians to Protect Local Taxpayers and Vital Services.  “Despite this, State elected officials have exploited possible loopholes in the law and used legally questionable tactics to borrow and raid more than $5 billion in local government, transit and redevelopment funds this year alone, and billions more in ongoing raids from years’ past.

“These raids are having a significant and negative impact on the vital services that all Californians rely upon, including layoffs of local police and firefighters, delayed 911 emergency response times, and cuts to healthcare, parks, libraries, public transit and road safety maintenance and community improvements. We’re looking into qualifying a measure for November 2010 that would close these loopholes in current law and protect funding for these vital services once and for all,” continued McKenzie.

“On several occasions, the voters of California have mandated that the gas taxes we pay at the pump be used to fund transportation improvements,” said Jim Earp, Executive Director of the California Alliance for Jobs and co-chair of Californians to Protect Local Taxpayers and Vital Services. “Despite this, year after year the Legislature exploits every loophole it can find to borrow or outright raid these critical funds.  This measure will once and for all protect gas taxes from future raids and insure they are used to improve our roads, highways and transit systems – just like the voters intended.”

Josh Shaw, Executive Director of the California Transit Association and co-chair of the coalition said:  “For eight years in a row, State politicians have redirected funding that’s supposed to go to local public transportation services, like buses, commuter rail and shuttles. Even though we’ve warned these raids are illegal and the courts have ruled that such raids are illegal, there’s no recourse, so the politicians continue to ignore the law and the will of the voters.  In these trying times, it’s vital that we protect public transit services for working families who have no other mode of transportation to and from work, school, health care facilities and other life responsibilities.”

The coalition filed two similar ballot measures. If the group decides to proceed with signature gathering, it would move forward with qualifying only one of the two.  Named the Local Taxpayer, Public Safety and Transportation Protection Act Versions I and II, the measures 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 and special districts. It would also revoke the state’s authority to borrow local government property tax funds or divert local redevelopment 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. This measure 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.

“Restoring more local control over our tax dollars is a central piece to broader reforms of our state’s broken fiscal system,” continued McKenzie.  “The fiscally irresponsible practice of borrowing local taxpayer funds makes our state budget problems worse down the line because local government and transportation funds have to be repaid, with interest. Additionally, several raids of local and transit funds have been rejected by the courts, creating even larger state budget deficits down the line. This measure will help prevent these irresponsible and dishonest raids and help force fiscal discipline in Sacramento.”

Jim Earp concluded:  “We’re confident that Californians will vote resoundingly to protect funding for public safety and transportation services from continued State raids.”