Today's Law As Amended


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AB-1640 Local government finance: budget reserves.(2019-2020)



As Amends the Law Today


SECTION 1.
 The Legislature finds and declares as follows:
(a) Some cities and counties hold high levels of budget reserves, often in excess of 50 percent, while human services, homelessness, the housing crisis, and other important health and safety concerns remain unaddressed and unfunded.
(b) It is important to hold cities and counties accountable for failing to address critical needs of the people in their communities.

SEC. 2.

 Section 50058 is added to the Government Code, to read:

50058.
 (a) On or before September 1, 2020, and annually on that date thereafter, each local government shall submit a written report to the State Controller’s office on how it plans to spend any of its budget reserves, subject to subdivision (b), during the next five fiscal years on the following priorities:
(1) Mental and behavioral healthcare and services.
(2) Affordable housing.
(3) Homelessness.
(4) Foster youth programs.
(5) LGBTQ+ centers.
(6) Veterans services.
(7) Special needs youth and adult services.
(8) In-home supportive services.
(b) This section shall only apply to a local government if the local government’s budget reserve in the immediately preceding fiscal year was in excess of 30 percent of the total expenditures of the local government in that fiscal year.
(c) For purposes of this section:
(1) “Budget reserves” means an amount that is the difference between the total revenue of the local government in a fiscal year, including all revenue generated by taxes, assessments, and fees, and the total expenditures of that local government in that fiscal year.
(2) “Local government” means a city, including a charter city, or a county.
SEC. 3.
 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.