Ballot measure would block raids on local government

Bay Area News Group

December 24, 2009

By Steven Harmon

SACRAMENTO — Angered by a series of raids on local funds by state government, a coalition of local government groups kicked off a signature-gathering effort Wednesday with a ballot measure that would thwart any future raids.

Continued state raids and borrowing of local government funds have put vital local services at risk, said Chris McKenzie, executive director of the League of California Cities and co-chairman of Californians to Protect Local Taxpayers and Vital Services.

"This measure would put a stop to state raids and borrowing of local taxpayer dollars and protect vital local services," McKenzie said. "As various stakeholders evaluate the need for reforming California state government, we believe there is no more important reform than untangling the messy relationship between the state and local governments."

Supporters, who must gather 694,354 valid signatures to qualify the measure for the November 2010 ballot, have vowed to collect 1.1 million signatures with a combined volunteer and paid signature-gathering campaign.

Gov. Arnold Schwarzenegger and lawmakers infuriated city and county leaders earlier this year by suspending a law that forbids raids on local funds, borrowing $2 billion in tax revenue from local governments.

And this week, Schwarzenegger was reported to be considering another plan to sidestep a ban that already exists on raids of transportation funds. The plan would eliminate the state sales tax

on gasoline and replace it with a new excise tax on gasoline, to be diverted into the general fund. Critics said the move would "rob" public transit agencies of hundreds of millions of dollars, fitting in with the state's growing thirst for local revenues as it faces another round of painful budget cuts.

"California voters have repeatedly supported statewide measures that dedicate the gas taxes we pay at the pump for transportation improvements," said Jim Earp, executive director of the California Alliance for Jobs and co-chairman 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."

Reach Steven Harmon at 916-441-2101.

WHAT IT WOULD STOP
n Borrowing local government property tax funds.
Borrowing or taking gasoline taxes dedicated to transportation and transit improvements and services, including the state sales tax on gasoline.
Taking locally levied taxes, including parcel taxes, sales taxes, and other locally imposed taxes.
Raiding redevelopment funds or shifting redevelopment funds to other state purposes