SEC. 1.5.
(a) (1) In implementing the ad valorem property tax revenue allocation requirements of subdivision (a) of Section 1 in the 2002–03 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 2000–01 fiscal year.(2) For the purposes of paragraph (1), the applicable percentages are as follows:
Fiscal Year | Percentage (%) |
|---|
2002–03
........................
| 80 |
2003–04
........................
| 70 |
2004–05
........................
| 60 |
2005–06
........................
| 50 |
2006–07
........................
| 40 |
2007–08
........................
| 30 |
2008–09
........................
| 20 |
2009–10
........................
| 10 |
2010–11 and each fiscal year thereafter
........................
| 0 |
(b) In the 2002–03 fiscal year and each fiscal year thereafter, both of the following requirements apply:
(1) Any 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) Any 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) The amount of moneys that is required by Section 8 of Article XVI to be applied by the State for the support of school districts and community college districts shall be determined in accordance with Section 8 of Article XVI in that amount that would be so determined in the absence of this section.