Woodland's Chamber hears pitch for new amendment

League of Cities pushing to stop state from raiding local coffers

Woodland Daily Democrat

January 21, 2010

By Melody Stone

The Woodland Chamber of Commerce heard a heavy pitch from Councilman Bill Marble about the need to protect local government revenues from state seizures at a Chamber business development meeting on Tuesday.

A petition to place on the ballot a constitutional amendment to protect local government revenues is circulating around Yolo County, and Marble said he wants to get as many people in the business community on board as possible.

The amendment would ensure the state can't take money from the local governments, plugging up any loopholes in the constitution, Marble said. The proposal, entitled Local Taxpayer, Public Safety and Transportation Protection Act of 2010, needs about 1.1 million signatures to be placed on the November 2010 ballot.

In December, the Woodland City Council voted to support the ballot initiative.

Charles Anderson, regional public affairs manager for the League of California Cities, Sacramento Valley division, also attended the Chamber of Commerce Business Issues Committee meeting and explained why the constitutional amendment is important, timely and necessary.

Marble explained how the state government uses creative loopholes to seize local funds. During the last budget processes in 2009, the state enacted the Education Revenue Augmentation Fund property tax shift, "sales tax triple flip", and the "vehicle license fee swap", all taking money from local governments.

Marble said these measures were creative gimmicks and that they don't really balance a budget, except on paper.

Last year, the state government was poised to seize the Highway Users Tax, but at the last minute the proposal was dropped. The state did seize some redevelopment funds, Marble said, but those seizures are being challenged in court.

The state also "borrowed" property tax from the local governments.

Anderson said the practice has gone on for decades and needs to stop. He encouraged everyone to sign the petition and to pass along the word.

"There's no end to the creativity they've utilized," Marble said about how the state shifts money away from local governments.

Thomas Stallard, a Woodland attorney, asked if there was anything local governments could do to help the state balance its budget, pointing out the state provides some services citizens enjoy.

"I'm too focused on how to keep Woodland operational," City Manager Mark Deven, who also attended the meeting, said. "I don't have time to tell the state what to do."

Deven said he can't plan his budget when there's no consistency of funding. "When the state continues to change the rules, we can't sustain ourselves," Deven said.

The Chamber's committee formed a small task force to read over the proposed amendment and recommend to the group a plan of action. Chairman Al Aldrete, an insurance salesman, said he needed help interpreting the legalese.

Stallard said, "It's just another insurance policy, Al."