Bill Text

Bill Information


Add To My Favorites | print page

ACA-5 Local government finance: property tax revenue allocation: local agency relief.(2003-2004)

SHARE THIS: share this bill in Facebook share this bill in Twitter
ACA5:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2003–2004 REGULAR SESSION

Assembly Constitutional Amendment
No. 5

Introduced  by  Assembly Member Cogdill, Garcia

December 11, 2002

A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Section 1.5 to Article XIII A thereof, relating to local government finance.


LEGISLATIVE COUNSEL'S DIGEST


ACA 5, as introduced, Cogdill. Local government finance: property tax revenue allocation: local agency relief.
(1) Existing provisions of the California Constitution require that the revenues derived from the general ad valorem property tax be allocated to local jurisdictions in each county in accordance with law. Existing statutory law implementing these provisions requires each county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined. Existing statutory law reduces the amounts of ad valorem property revenue that would otherwise be annually allocated to the county, cities, and special districts pursuant to these general allocation provisions by requiring, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, that the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. Existing law annually requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education.
This measure would modify these reduction and transfer requirements, for the 2004–05 fiscal year and each fiscal year thereafter, by prohibiting the total amount allocated to a county’s Educational Revenue Augmentation Fund from exceeding the applicable percentage, set forth in a specified schedule, of the total amount allocated to that fund for the 2002–03 fiscal year. This measure would further require that the revenues not allocated to the county’s Educational Revenue Augmentation Fund as a result of these limits be allocated instead among the local agencies in the county, as provided, and that the decrease in allocations to a county’s Educational Revenue Augmentation Fund resulting from those limitations be first applied to reduce allocations from that fund to school districts and the county office of education.
(2) The California Constitution requires for each fiscal year that a minimum amount of money, computed under one of 3 formulas, be set aside from all state revenues for the support of school districts and community college districts.
This measure would prohibit certain increases resulting from this measure, in the aggregate amount of state moneys appropriated under statutory funding calculations to individual school districts or community college districts, or both, from being applied against the state’s minimum funding obligation under the California Constitution to school districts and community college districts.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  
Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2003–04 Regular Session commencing on the second day of December 2002, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California that the Constitution of the State be amended by adding Section 1.5 to Article XIII A thereof, to read:

SEC. 1.5.

 (a) (1) In implementing the ad valorem property tax revenue allocation requirements of subdivision (a) of Section 1 in the 2004–05 fiscal year and in each fiscal year thereafter, a county’s Educational Revenue Augmentation Fund, established pursuant to Sections 97.2 and 97.3 of the Revenue and Taxation Code, or any successor fund established pursuant to those sections, or any successor provisions, may not be allocated a total amount of ad valorem property tax revenue that exceeds the applicable percentage, specified in paragraph (2), of the total amount of ad valorem property tax revenue that was allocated to that fund in the 2002–03 fiscal year.
(2) For the purposes of paragraph (1), the applicable percentages are as follows:
Fiscal Year
Percentage (%)
2004–05 ........................
80
2005–06 ........................
70
2006–07 ........................
60
2007–08 ........................
50
2008–09 ........................
40
2009–10 ........................
30
2010–11 ........................
20
2011–12 ........................
10
2012–13 and each fiscal year thereafter ........................
0
(b) In the 2004–05 fiscal year and each fiscal year thereafter, both of the following requirements apply:
(1) The amount of ad valorem property tax revenue that is not allocated to a county’s Educational Revenue Augmentation Fund as a result of the limit established in subdivision (a) shall instead be allocated among the local agencies in the county in accordance with each local agency’s percentage share of the total amount of ad valorem property tax revenues that would be required to be allocated to the county’s Educational Revenue Augmentation Fund, or the successor to that fund, in the absence of this section.
(2) Each reduction resulting from subdivision (a) in the amount of ad valorem property tax revenue allocated to a county’s Educational Revenue Augmentation Fund, or the successor to that fund, shall be first applied to reduce allocations made from that fund to school districts and the county office of education, and may be applied to reduce the allocations made from that fund to community college districts only after the allocations made from that fund to school districts and the county office of education have been reduced to zero.
(c) In each fiscal year for which the amount of property tax revenues apportioned to school districts, community college districts, or both, is reduced as a result of this section from the amount so apportioned in the preceding fiscal year, any increase resulting from that reduction in the aggregate amount of General Fund proceeds of taxes appropriated to individual school districts, community college districts, or both, pursuant to applicable statutory funding calculations shall be excluded from the computation under Section 8 of Article XVI of the amount of moneys deemed to be applied by the state for the support of school districts and community college districts for that fiscal year. “School districts” and “community college districts,” for the purposes of this subdivision, have the meanings given those terms under Section 8 of Article XVI.