"Franz, Robert" wrote:
> Has anyone received this ERAF-loss based payment already, or do you know
> when the State will send it out?
Under the provisions of AB1661, the second $75 million will be distributed based
on "each amount of ad valorem property tax revenue shifted from a local agency
within the county to the county's Educational Revenue Augmentation Fund for the
1998-99 fiscal year." The bill provides that the Controller shall allocate the
ERAF-based amounts to counties no later than Feb 1, 2000. To receive payment,
each county must have passed an ordinance specifying these amounts before it can
receive any portion of revenue from the amounts provided in AB1661. Each county
auditor must then distribute the amounts in proportion to ERAF loss to the
cities, special districts and their county in their jurisdiction.
I should emphasize two things here:
1. While these amounts are based on ERAF loss (gross annual in 1998-99), the
reimbursement does not come back through the ERAF mechanism. It's really just a
check from the state (via the county auditor) - not a reduction in ERAF.
Moreover, the $75 million amount is a fraction of the gross annual ERAF shift -
so don't expect to see the full amount of your ERAF shift come back.
2. This is a one time deal. There is no provision for future years at this
time, although the bill does contain provisions for an ERAF freeze and state
funding of county property tax administration for schools in FY00-01 and
thereafter - provisions that are dependent on the approval by the electorate of
a Constitutional Amendment on state and local government fiscal reform in the
year 2000.
3. This is an opportunity (given the current state of the state budget) for you
to emphasize to public, the media and your legislators the importance of
*permanent* *discretionary* property tax return to your city.
--
Michael Coleman ���
Special Consultant
League of California Cities
[EMAIL PROTECTED]
530-758-3952 phone/FAX
