california local government finance almanac

HOT TOPICS

o Local Streets and Roads funds (HUTA, SB1) Estimates Updated May 13
o Calif State Budget and Local $ Impacts
o Votes - Local tax and bond measures
o Diagnosing Municipal Financial Health
o VLF-PropTax Swap and the 2011 VLF Grab: Impacts on Incorporations/Annexations
o CalPERS' Contribution Increases
o Redevelopment Dissolution
o Sales&UseTax and Online Transactions

Financing California Cities - Overviews and Primers

A Primer on California City Revenues by Michael Coleman. December 2016 Western City (PDF)
You Pay Taxes - Where Does it Go? A presentation from the California taxpayers' perspective showing common taxes, emphasizing how much cities receive. Oct'16 (PDF)
Understanding the Basics of Municipal Revenues in California: Cities, Counties and Special Districts. Institute for Local Government. 2016
Brief Glossary of Financial Management Terms; This glossary, available in English and Spanish, is designed to help non-finance experts understand some of the terminology used in public agency financial management. Institute for Local Government.
Cal Facts 2018. Legislative Analyst's Office.

Revenue Limits: Proposition 13 (1978), Proposition 218 (1996) and Proposition 26 (2010)

Article XIIIA of the California Constitution (Tax Limitation)
Article XIIIB of the California Constitution (Spending Limitation: Proposition 4)
Article XIIIC of the California Constitution (Voter Approval for Tax Levies)
Article XIIID of the California Constitution (Assessments and Property Related Fees)
Triskaidekaphobia: A Primer on Prop 13, ERAF and Prop218 . Michael Coleman (PDF 740k) (Pwrpt 512k)
Proposition 13 at 30: The Political, Economic and Fiscal Impacts. Conference at UC Berkeley June 6, 2008.
Proposition 13: Some Unintended Consequences . Jeffrey I. Chapman, Public Policy Institute of California 1998. Proposition 13 had three unanticipated consequences: 1) the fiscalization of land use, 2) the growth of arcane finance techniques, and 3) the increase of state control over local government finance. (PDF)
The Continuing Redistribution of Fiscal Stress: The Long Run Consequences of Proposition 13. Jeffrey I. Chapman, Lincoln Institute of Land Policy Working Paper. 1998. (PDF)
Patterns in California Government Revenues Since Proposition 13. Michael A. Shires, Public Policy Institute of California 1999. This report examines the changes that have occurred in state and local public finance between the passage of Proposition 13 in 1978 and 1995, addressing three questions: 1) How has the share of locally controlled revenues changed? 2) How has the spending flexibility of state and local revenues changed? 3) How has the composition of state and local revenues changed?
Has Proposition 13 Delivered? The Changing Tax Burden in California . Michael A. Shires, John Ellwood, and Mary Sprague, Public Policy Institute of California 1998. One question that has arisen in the debate over public finances is whether Proposition 13 has succeeded in reducing the tax burden of Californians. This report shows that it has.
Proposition 13: Love it or Hate it, its Roots Go Deep. California Taxpayers Association, November 1993.

Proposition 13: A Look Back. KPBS San Diego's Feb 2010 well done review of Proposition 13 and its legacy. [Video]
No-Property-Tax Cities After Propositon 13. Bob Leland, Assembly Revenue and Taxation Committee and Julie Nauman, Assembly Local Government Committee, Sacramento, November 1980.
Proposition 26 and 218 Implementation Guide . A thorough guide to California Constitution Articles XIIIC and XIIID by the League of California Cities Legal Issues Committee. May 2017.
Proposition 218 Implementation Guide for Special Districts . Kelly Salt. California Special Districts Association. 2013.
Current Developments Under Propositions 13, 62, & 218 by Michael G. Colantuono.
The State-City Fiscal Relationship Since Proposition 13: Is AB8 Still Alive? by Michael Coleman. (PDF)
Living With Proposition 26 of 2010 including Frequently Asked Questions. December 18, 2010 (PDF)
Proposition 26: An Executive Summary for the Layperson. by Patrick Whitnell. March 2011 Western City
Proposition 26 Guide for Special Districts by Kelly Salt. California Special Districts Association. 2013.

Proposition 1A Protection of Local Government Revenues

In November 2004, the voters of California approved Proposition 1A, an amendment to the California state constitution intended to restore predictability and stability to local government budgets.

Proposition 1A Facts . A summary of the provisions of Proposition 1A. (PDF)
Proposition 1A Text . Text of Proposition 1A. (PDF)
- Vehicle License Fee revenue protected: California Constitution Article XI sec 15
- Property tax, sales tax, transactions & use tax protected: California Constitution Article XIII sec 25.5
- State mandate reimbursement California: Constitution Article XIIIB sec 6

Note: Proposition 1A does not contain the provisions of the "VLF-for-Property-Tax-Swap of 2004" nor the ERAF III local government contributions. These were part of the State Budget Act of 2004.

California Local Government Governance and Reorganization

About California Cities. Lists, powers, types. League of California Cities.
Charter Cities in California. League of California Cities.
The Council-Manager form of Government: Frequently Asked Questions. International City Management Association.
- "Beyond Stereotypes: Socio-economic Characteristics of Modern Council-Manager Cities" by Kevin R. Carter
City Fact Sheet. Fast facts re California city demographics and finances. California Senate Local Government Committee August 2009.
County Fact Sheet. California Senate Local Government Committee August 2009.
Special District Fact Sheet. California Senate Local Government Committee August 2009.
Descriptions of Organization and Responsibilities of California Governments. U.S. Census Bureau, Census of Governments. (PDF)
Guide to the Cortese-Knox-Hertzberg Local Government Reorganization Act. Assembly Committee on Local Government December 2005.
Commission on Local Governance for the 21st Century. Final Report "Growth Within Bounds." January 2000.
Resources from the California Association of Local Agency Formation Commissions (CALAFCO).
City Incorporations and the New Public Finance. An outline of how changes to the VLF and property tax in lieu of VLF effect the finances of future city incorporations. By staff to the California State Senate Local Government Committee (PDF)
City Annexations and the New Public Finance. An outline of how changes to the VLF and property tax in lieu of VLF effect the finances of future annexations. By staff to the California State Senate Local Government Committee (PDF)
Property Tax Allocation
Cities with Binding Interest Aribitration
Avoiding and Using Chapter 9 by John H. Knox and Marc A Levinson. November 2009 Western City
Municipal Disincorporation in California by John H. Knox & Chris Hutchison. 2010 (PDF)

Fiscal Condition of Municipalities

Perceptions of Local Fiscal Stress During a State Budget Crisis. Max Neiman and Daniel Krimm. Public Policy Institute of California. 2009 (PDF)
City Fiscal Conditions. Research surveys published by the National League of Cities.
Local Budgets and Tax Policy in California: Surveys of City Officials and State Residents. Mark Baldassare and Christopher Hoene. Public Policy Institute of California. (PDF)

Diagnosing and Managing Financial Health

The California Municipal Financial Health Diagnostic
Get the Diagnostic for cities here: Excel version PDF version January 2016 revision. The January 2016 version adds a new indicator: "#3 Capital Asset Condition," makes various minor edits and improvements, and adds a checklist for important financial management policies.
...or for Counties ... the California County Municipal Financial Health Diagnostic. August 2016 revision. Excel version
Introducing the California Municipal Financial Health Diagnostic. Presentation from the League of California Cities Annual Conference September 2014

CSMFO Webinar: The California Municipal Financial Health Diagnostic

Financial Management for Elected Officials. Institute for Local Government.
Financial Management Checklist for Elected City Officials. Government Finance Officers Association. (PDF)
Municipal Fiscal-Health Contingency Planning by Bill Statler. November 2009 Western City
Forecasting for an Uncertain Fiscal Future by Robert Leland. November 2015 Western City

Managing Fiscal Stress and Municipal Bankruptcy

Avoiding and Using Chapter 9 by John H. Knox and Marc A Levinson. November 2009 Western City
Municipal Bankruptcy: Avoiding and Using Chapter 9 in Times of Fiscal Stress by John Knox and Marc Levinson. Orrick, Herrington & Sutcliffe LLP, 2009. (PDF booklet)
12-Stage Financial Recovery Process: Recovery from Financial Distress and Fiscal First Aid Government Finance Officers Association (GFOA)
Pension Obligation Bonds

The State-Local Fiscal Relationship

State-Local Fiscal Conflicts in California: From Proposition 13 to Proposition 1A. Elisa Barbour, Public Policy Institute of California. December 2007. An excellent overview.
The State-City Fiscal Relationship Since Proposition 13: Is AB8 Still Alive? by Michael Coleman. (PDF)
Major Milestones: Over Four Decades of the State-Local Fiscal Relationship. Legislative Analyst's Office with state's persepective, Updated 2012 (PDF)
California City - State Gives and Takes Since Proposition 13 (1978). An accounting of state general revenue gives and takes to/from cities since 1978 in table and chart form. (PDF)
Overview of State Assistance to Local Governments Since Proposition 13 Assembly Local Government Committee, California State Legislature 1983. A detailed description of legislative changes to state assitance and property tax allocations in the five years following Propositon 13.
Comparing State and Local Government Finances. Charts comparing revenues, taxes and spending of the state, cities and counties over the last thirty+ years. June'06 (PDF 34kb)
Comparing State and Local Government Employment. Charts comparing employment the state, cities, counties and schools over the last fifteen+ years. June'06 (PDF 34kb)
Cal Facts: California's Economy and Budget in Perspective - State and Local Finances. Legislative Analyst's Office, January 2013 (PDF)
Perspectives on Local and State Finance and Infrastructure in California: Surveys of City Officials and Residents. Mark Baldassare, Christopher Hoene, and Dean Bonner. Public Policy Institute of California.
Perspectives on State and Local Finance: Surveys of City Officials in California and the U.S. Mark Baldassare and Christopher Hoene. Public Policy Institute of California. December 2005
Perspectives on State and Local Finance in California: Surveys of City Officials and Residents. Mark Baldassare and Christopher Hoene. Public Policy Institute of California. October 2005
The Origin & Devolution of Local Revenue Authority. Michael Coleman and Michael G. Colantuono. June 2003 Western City
Toward Fiscal Authority and Stability: Power and Risk in California City Revenues. Michael Coleman and Michael G. Colantuono. August 2003 Western City
The State-Local Fiscal Relationship in California: A Changing Balance of Power . Fred Silva and Elisa Barbour, Public Policy Institute of California 1999.
Waiting for the State to Get its House in Order: The Origin of Cities' Fiscal Relationship With the State . Betsy Strauss and Michael Coleman, Sept 1998 Western City (PDF 206k)

Educational Revenue Augmentation Fund (ERAF): Property Tax Shifts

In 1992, facing a serious deficit position, the State of California began shifting local property tax revenues from cities, counties and some special districts into these funds to reduce the cost of education to the state general fund.

ERAF facts. A concise explanation of ERAF with tables and charts showing historic and projected ERAF losses and mitigations for cities, counties and special districts. Aug'12 (PDF)
ERAF loss by city, county and special district. For each city and county and for special districts grouped by county: estimated ERAF loss, estimated ERAF loss net of mitigations (including Proposition 172 and COPs), estimated cumulative historic ERAF loss. PDF files:
- ERAF FY2006-07 by County
- ERAF FY2005-06 by County (including ERAF III)
- ERAF FY2004-05 by County (including ERAF III)
Triskaidekaphobia: A Primer on Prop 13, ERAF and Prop218 . Michael Coleman May'06 (PDF 740k) (Pwrpt 512k)
Proposition 172 Facts. A concise explanation of Proposition 172, the half-cent sales tax for Public Safety adopted by voters as a partial mitigation for ERAF. (PDF)
- Net Impact of ERAF, Prop 172 and COPs (73k) ERAF, Proposition 172 and COPs apportionments for all cities, counties and special districts.
- The Proposition 172 Half Cent Sales Tax: Background for League of California Cities 2005 Annual Conference Resolution #7 (PDF) Proposition 172: The Public Safety Half Cent Sales Tax. Handout version of PowerPoint presentation (Coleman) (PDF)
Insufficient ERAF: A Recent Issue in Local Government Finance. Legislative Analyst's Office, December 18, 2012.

State-Local Mandates in California

Suspended State Mandates for FY2017-18 . Not reimbursable.
Understanding State Mandates and Suspended Mandates: Local Government Impacts. Western City Magazine. March 2014.
What's a Mandate: Overview. An informative Webcast by the Legislative Analyst's Office (requires Adobe Flash) Jan 2007 What's a Mandate: Learning Through Examples
Mandate FAQ from the California State Controller's Office.
Commission on State Mandates Guide. California Commission on State Mandates 2014 (PDF)
California Commission on State Mandates Info on reimbursable PropTaxLCC state mandates.
Improving the Mandate Process. Reform concepts from the Legislative Analyst's Office. Feb 2007
Mandated Cost Claim filing instructions payment info, reports and related information from the California State Controller.

Redevelopment Dissolution under ABx1_26 (2011)

Redevelopment Dissolution Resources and Information - League of California Cities
California Department of Finance Redevelopment Agency Dissolution Information
Timeline for dissolution of redevelopment agencies under ABx1_26.
Essential Elements of AB x 1 26 Housing - Polly Marshall and Lynn Hutchins, Goldfarb & Lipman
Essential Elements of AB x 1 26 Sucessor Agencies - Betsy Strauss, League of California Cities
Essential Elements of AB x 1 26 Employment - Scott Tiedemann, Liebert Cassidy Whitmore
Essential Elements of AB x 1 26 Environmental - Robert Doty and Andrew Fogg, Cox Castle Nicholson
Essential Elements of AB x 1 26 Bond Financing - Kimberly Byrens, Best Best & Krieger
Auditor Controller Audit Guidelines
Auditor Controller Draft Implementation Guidelines ABx1_26
ABx1_26 Bill Text (Chaptered)
Supreme Court Decision California Redevelopment Association v. Matosantos

The Fragmentation of Local Finance & Governance

Frozen property tax allocations may not be the most efficient or preferred allocation now. Inefficiencies persist due to the fragmentation of policy and finance among too many local authorities and the decline of general purpose government policy making authority.

Rethinking Property Tax Allocation. Why do property tax shares vary among cities? A thorough look at reasons and remedies. May 2015
Reforming Property Tax Allocation and Authority Remarks before the Little Hoover Commission hearing "Special Districts: Relics of the Past or Resources for the Future?" August 2016
- Report of the Little Hoover Commission: "Special Districts: Improving Oversight & Transparency" see page 26-28, "Special Districts and Property Tax Inequities" Aug 2017
Property Tax Fairness Among Local Governments Means Consolidating Local Governance. Michael Coleman, Nov 1999. CalTax Digest.
Allocating the Property Tax . by Legislative Analyst Elizabeth Hill, July 2000. CalTax Digest.
Allocating Property Tax Revenue in California: Living With Proposition 13. by McCarty, Therese A., Terri A. Sexton, Steven M. Sheffrin, Stephen D. Shelby. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association. Vol.94. 2001 Full report
Demystifying The California Property Tax Apportionment System. by Dave Elledge, 2006. A step by step guide through the process County Auditors use to allocate property tax revenues among local governments.
Property Tax Essentials: What You Need to Know about How County Auditor-Controllers Allocate Property Taxes. A February 2007 CSMFO podcast panel with Santa Clara County Auditor-Controller Dave Elledge.

The Fiscalization of Land Use

The disconnect between service costs and revenues in urban development impairs the provision of city services and deters balanced planning.

Comparison of City Budget Impacts of New Development. A detailed table comparing the annual revenues and service expenses from several development alternatives in a theoretical city. (PDF)
Does New Housing "Pay For Itself?" Some say a study sponsored by the California Home Builders says "yes" but experts in local finance and land use economics question this conclusion and some methods and assumptions of the study.
Allocating Local Sales Taxes. Legislative Analyst's Office 2007
Retail Politics: Local Sales and Use Taxes and the Fiscalization of Land Use. Paul G. Lewis. February 2001, Economic Development Quarterly (PDF)
Growth Challenges and Local Government Finance: A Primer for the Sacramento Valley
Paul G. Lewis and J. Fred Silva, September 2001.
Residential Development and Growth Control Policies: Survey Results from Cities in Three California Regions
Paul G. Lewis and Max Neiman. Public Policy Institute of California. July 2000.
California Cities and the Local Sales Tax. Paul G. Lewis and Elisa Barbour. Public Policy Institute of California, July 1999.
Growth Challenges and Local Government Finance: A Primer for the Sacramento Valley . Paul G. Lewis and J. Fred Silva, Public Policy Institute of California 1999.
Development Priorities in California Cities: Results from a PPIC Survey. Paul G. Lewis and Elisa Barbour, Public Policy Institute of California. December 1998.

Local Revenues in a Changing World

Revenue Volatility in California. Legislative Analyst's Office. January 2005.
E-Commerce reports and studies. California State Board of Equalization.
Why Have Sales Taxes Grown Slower Than the Economy? Legislative Analyst's Office 2013.
E-Commerce Taxation . Links to reports, background papers and statistics. Prepared by Dr. Annette Nellen.
Streamlined Sales Tax Project (SSTP). Multi-state project seeking improvement and standardization of sales and use taxes.
- SSTP California Board of Governance representing California on the Streamlined Sales Tax Project pursuant to SB157 (Chapter 702, 2003) including meeting agendas and reports.
- The Streamlined Sales and Use Tax Agreement: A California Perspective, Martha Jones, California Library Research Bureau, Feb 2005.
- Analysis of Specific Sections of the SSTP Agreement by Board of Equalization staff.
Ride Sharing in the New Economy: Regulatory options for cities by Joan Borger and Rebecca Moon. June 2015 Western City.

The Home Sharing Economy in Cities: Regulatory options for cities

Western City

Local Government Fiscal Reform

There have been more than a dozen task forces, commissions, studies and proposals on local government finance reform over the last decade alone. Here are some articles on the problem, ideas, and analyses of recent proposals. It is important to note that, in 2004, two important changes occurred in the state-local fiscal relationship: the passage of Proposition 1A of 2004, and the swap of $4 billion of state Vehicle License Fee backfill payments to cities and counties for greater shares of local property tax revenues. These major changes make obsolete some of the recommendations in pre-2004 reports.

Background and Overview

► Reforming California Municipal Finance and the State-Local Relationship - a City Perspective. History, problem definition, principles, and some suggested solutions by Michael Coleman. Jan'11
California Local Government Fiscal Reform . The problems, policy goals, policy questions and tensions. An outline with flow chart by Michael Coleman.
► Reforming California Local Finance: Should the Local Vote Rules Be Reversed? Analysis and opinion by Michael Coleman. April 2013
Allocating Local Sales Taxes. Legislative Analyst's Office 2007
Local Finance Reform from a Regional Perspective. J. Fred Silva, Public Policy Institute of California 2001
The State/Local Fiscal Relationship: A Taxing History of Prop. 13 Comments by Fred Silva in Metro Investment Report, Jan 1999
Perspectives on State and Local Finance in California: Surveys of City Officials and Residents Mark Baldassare and Christopher Hoene, Public Policy Institute of California Oct 2005.

Local Government Fiscal Reform - Commissions, Studies and Articles

► California Crack-Up: How Reform Broke the Golden State and How We Can Fix It. Joe Matthews and Mark Paul. UC Press. 2010. A thoughtful, readable analysis of our state governance and finance problems with cogent ideas for reform. The best writing on this subject yet.
Report of the Summit on State Governance and Fiscal Reform July 17-18, 2009. Cities Counties Schools (CCS) Partnership.
California Forward 2007-current
Commission on the 21st Century Economy (COTCE). 2008-2009. Final report released Sept 29, 2009
- Final report and other related reports and research
- Presentation on Final Report Sept 14, 2009
- Staff reports and commissioner correspondence
- Critique by nine leading tax policy experts. Sept 5, 2009
- Critique by Jean Ross of the California Budget Project. Sept, 2009
- LA Times' Michael Hiltzik: "Panel Blew Its Opportunity" Oct 5, 2009
Little Hoover Commission.
- Report of the Little Hoover Commission: "Special Districts: Improving Oversight & Transparency" see page 26-28, "Special Districts and Property Tax Inequities" Aug 2017
- Governing the Golden State: A Critical Path to Improve Performance and Restore Trust. July 2004. See Appendix D starting on page 75 for a good summary of prior reform efforts and recommendations.
- Historic Opportunities: Transforming California State Government. Dec 2004.
California Commission on Tax Policy in the New Economy. Final Report 2003. Established by SB 1933 (Vasconcellos, 2000), to review the state's revenue programs in light of the "new economy" and to propose structural reforms. (PDF)
Speaker's Commission On State and Local Government Finance (1999).
- Fiscal Analysis of Speaker's Commission Proposal to Swap a Portion of the Bradley Burns Local Sales Tax for Property Tax (12/8/1999) Summary of the proposal and an initial analysis of fiscal impacts on individual cities using FY96-97 revenue data. Michael Coleman. (PDF).
- Fiscal Impacts of the Proposal of the Speaker's Commission On State and Local Government Finance. Detailed fiscal impact and policy analysis of the fiscal restructuring proposals of the commission by Michael Coleman. (PDF).
- A Comparison of Major California Tax Bases . Analysis by Michael Coleman. (PDF 25k)
Reconsidering AB 8: Exploring Alternative Ways to Allocate Property Taxes . Legislative Analyst's Office (2000)(PDF)
Cure Prop. 13 'Sickness' by Reassessing Commercial Property, Boosting the Homeowners' Exemption and Cutting the Sales Tax. Senator Steve Peace, CalTaxDigest Feb. 2000
Commission on Local Governance for the 21st Century. Final Report "Growth Within Bounds." January 2000. Established in 1997 by then Assembly Speaker Robert Hertzberg, this commission was charged with examining the laws governing city, county and special district boundary changes. But its recommendations cover local government finance as well.
Kathleen Connell's SMART/SMARTER Plan for Local Government Finance Reform (1999).
- Fiscal Impacts of the Controller Connell's SMART/SMARTER Plan ("not") . Detailed fiscal impact and policy analysis by Michael Coleman. (PDF)
California Constitution Revision Commission (1996).
- Final Report. See Chapter V: "Establishing a new local government structure and finance system"
- Executive Summary
- History and Perspective
Making Californiaï's Governments Work. League of California Cities Committee on Local Government Reform. Jan 1995. (PDF)
Making Government Make Sense. Legislative Analyst's Office June 1994 (PDF)

Legislative Proposals

AB1221 (Steinberg/Campbell) (2003-04) "The most significant legislative proposal affecting California city finance since the turn of the century," (- League of California Cities) AB1221 was intended by its authors to encourage cities and counties to "make land use decisions based on the best interests of their communities and not simply based on what generates the most sales tax." Bill text and legislative committee analyses.
- AB1221 Fiscal and Policy Implications for Cities by Michael Coleman. (PDF)
- Effects of AB1221 on the City Budget Impacts of Land Use Development by Michael Coleman. (PDF)
- Unintended Consequences: AB1221 and Annexations by Michael Coleman. (PDF)
AB680 (Steinberg) Sales Tax Reallocation Proposal (2001-02). Pilot proposal for the reallocation of a portion of local sales tax revenue growth. Bill text and legislative committee analyses.
- AB680 (Steinberg) Sales Tax Reallocation Proposal. A memo by Michael Coleman clarifying some common misunderstandings.

Selected Presentations by Michael Coleman on California Local Government Finance Reform

►Reforming Property Tax Allocation and Authority Remarks before the Little Hoover Commission hearing "Special Districts: Relics of the Past or Resources for the Future?" August 2016
►Rethinking Property Tax Allocation. Why do property tax shares vary among cities? A thorough look at reasons and remedies. May 2015
► Evaluating Some Options for Sales Tax Reform - Coleman. League of California Cities Policy Committees. 6 April 2015
Exploring Reform in California Municipal Finance. UC Davis Extension: Planning in California - An Overview and Update. October 2011.
► Reforming California Municipal Finance and the State-Local Relationship - a City Perspective. History, problem definition, principles, and some suggested solutions by Michael Coleman. Jan'11
California Local Government Fiscal Reform. The problems, policy goals, policy questions and tensions. An outline with flow chart by Michael Coleman.
► Reforming California Local Finance: Should the Local Vote Rules Be Reversed? Analysis and opinion by Michael Coleman. Nov'10
Challenges to the California Local Government Fiscal Reform. Little Hoover Commission, "Roadmap for Reform" Public Hearing, March 25, 2004, Sacramento

Public Employee Pension and Other Post Employment Benefit Costs

League of California Cities' Pension Information Center: "Retirement System Sustainability"
Donald J. Boyd and Peter J. Kiernan, "Strengthening the Security of Public Sector Defined Benefit Plans" Nelson A. Rockefeller Institute of Government January 2014. An excellent reveiew of the issues.
Reducing Unfunded Liabilities for Other Post-Employment Benefits by Nancy Kerry. May 2015 Western City.
Ed Mendel's Calpensions Blog
Pension Obligation Bonds
California Public Employee Post-Employment Benefits Commission. Final Report on state OPEB obligations issued January 2008.
CalPERS
Public Employee Pension Costs in California, a presentation to the Council of State Governments, November 12, 2009, by the Legislative Analyst's Office.
Retiree Health Care FAQ. Legislative Analysts Office.
"State Retiree Costs May Skyrocket in Future Years" from the 2009-10 Budget Analysis. Legislative Analyst's Office.
Funding the Golden Years in the Golden State: An Overview of Public Employee Post-Employment Benefits and Recent Concerns About How to Provide and Pay for Them. Grant Boyken. California Research Bureau. April 2007

Property Tax

The largest source of revenue for city and county government, the complex machinations of California property tax assessment, collection and allocation are understood by few.

Overviews and Statistics

Understanding California's Property Taxes. Legislative Analyst's Office 2012.
A Primer on Prop 13, ERAF and Prop218. Michael Coleman (Powerpoint)
California Property Tax: An Overview. A comprehensive guide to the mechanics of California's Property Tax. California State Board of Equalization. 2012
Property Tax info and resources from the State Board of Equalization: assessment rules, exemptions, etc.
Chapter 4: Local Property Tax from the Revenue and Taxation Reference Book 2015. Page 163. Assembly Committee on Revenue and Taxation. Thorough review of the history, rules, administration, collection and allocation of California's property tax.
Understanding California's Property Tax Roll: Regions, Property Types, and Sale Years. Tracy Gordon and J. Fred Silva. Public Policy Institute of California. 2003
California State Board of Equalization Annual Reports. Property tax, sales and use tax, motor vehicle fuel license tax, and more data on BOE administered revenues.
Property Tax by city . Historic revenues from the local property tax, revenues per capita, summary statistics. Through FY13-14. Sept'15 (Excel)
Assessed Valuation of Property by city . Historic Assessed Valuation, land, improvements, personal property, HOPTR, exemptions, state assessed, total net AV per capita, summary statistics. Through FY15-16. May'19 (Excel)
Significant Features of the Property Tax. An online database of property tax information for all 50 states prepared by the Lincoln Institute of Land Policy and the George Washington Institute of Public Policy.
Tax Expenditure Reports. California Department of Finance. Includes description and value of property tax exemptions.

Allocation of Tax Revenues

Apportionment - The System

Demystifying The California Property Tax Apportionment System. by David G. Elledge, 2006. A step by step guide through the process County Auditors use to allocate property tax revenues among local governments.
Property Tax Essentials: What You Need to Know about How County Auditor-Controllers Allocate Property Taxes. A February 2007 CSMFO podcast panel with Santa Clara County Auditor-Controller Dave Elledge.
Overview of State Assistance to Local Governments Since Proposition 13. Assembly Local Government Committee, California State Legislature 1983. A detailed description of legislative changes to state assitance and property tax allocations in the five years following Propositon 13.
Apportionment Reform
Rethinking Property Tax Allocation. Why do property tax shares vary among cities? A thorough look at reasons and remedies. May 2015
Reforming Property Tax Allocation and Authority Remarks by Miochael Coleman before the Little Hoover Commission hearing "Special Districts: Relics of the Past or Resources for the Future?" August 2016
- Report of the Little Hoover Commission: "Special Districts: Improving Oversight & Transparency" see page 26-28, "Special Districts and Property Tax Inequities" Aug 2017
Property Tax Fairness Among Local Governments Means Consolidating Local Governance. Michael Coleman, Nov 1999. CalTax Digest.
Allocating the Property Tax. by Legislative Analyst Elizabeth Hill, July 2000. CalTax Digest.
Allocating Property Tax Revenue in California: Living With Proposition 13. by McCarty, Therese A., Terri A. Sexton, Steven M. Sheffrin, Stephen D. Shelby. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association. Vol.94. 2001 Full report
Reconsidering AB 8: Exploring Alternative Ways to Allocate Property Taxes . Legislative Analyst's Office Feb 2000.
Property Taxes: Why Some Local Governments Get More Than Others. Legislative Analyst's Office, August 20, 1996.
No-Property-Tax Cities After Propositon 13. Bob Leland, Assembly Revenue and Taxation Committee and Julie Nauman, Assembly Local Government Committee, Sacramento, November 1980.
Measuring Shares
Statewide Property Tax Shares - Cities, Counties, et al . A discussion by Michael Coleman of how (and how not) to calculate the relative typical and statewide shares of property tax revenues among cities, counties and other local governments.
Insufficient ERAF - A complicated current issue
Insufficient ERAF: A Recent Issue in Local Government Finance. Legislative Analyst's Office, December 18, 2012.

Property Tax in Lieu of VLF

The VLF For Property Tax Swap of 2004: Facts for Local Officials. A detailed explanation of the swap of VLF backfill for local property tax. Includes discussion of city-county state general fund contributions. (PDF)
Amounts
- VLF Adjustment Amounts: FY04-05 True-Up and FY05-06 Calculations. State Controller's Office calculations of true-up of city and county FY04-05 Property Tax in Lieu of VLF amounts (column F) and FY05-06 Property Tax in Lieu of VLF amounts (column K). These are the amounts that county auditors will transfer in FY05-06. State Controller's Office. Oct14,'05 (PDF).
  - Controller's Office Oct14,'05 Cover Letter explaining the columns and calculations in the Oct14,'05 calculations (above). (PDF)
  - Key Points on FY04-05 and FY05-06 VLF Adjustment Amounts. Important notes on the Oct 14,'05 VLF Adjustment Amount numbers provided by the State Controllers Office. (PDF)
- Estimating Your City's Property Tax in Lieu of VLF Revenue for FY05-06 and Beyond. How to estimate Property Tax in Lieu of VLF revenues (VLF Adjustment Amount) for your city. May'06 (PDF)
Administration and Accounting
- County Auditor Procedures for the Implementation of the Triple Flip and VLF Swap . See "SB1096 Gymnastics" in the Califronia Property Tax Managers Manual prepared by the California State Assocaition of County Auditors. (PDF)
- Accounting for Local Revenue Realignments Adopted in the 2004-05 State of California Budget. Feb 2005 California Committee on Municipal Accounting. (PDF)
- NOTE: Property Tax in Lieu of VLF, also called Vehicle License Fee Adjustment Amount (VLFAA) is Property Tax, not VLF. It should be budgeted, accounted for, and reported as property tax, not VLF and not intergovernmental. To avoid confusion, it should be called "Property Tax in Lieu of VLF" and not "VLF."
- Flips, Swaps & Settle-Ups: The New In-Lieu Property Taxes. Presentation by Michael Coleman and Susan Mayer from the Dec 2, 2005 League of California Cities Financial Management Seminar in Monterey, CA (PDF)
► Annexations and Incorporations
- ► State Policy Disconnect: Fiscal Shifts Imperil New City Incorporations and Annexations of Developed Areas. A summary of the problems created by SB89 (2011) and their roots in the VLF-Property Tax Swap of 2004. (PDF)
- ► SB69(Roth) and AB1521(Fox): Remedy for City Incorporations and Annexations From Impacts of SB89(2011) and VLF-Property Tax Swap
- Annexations and Incorporations: Lingering Effects of the VLF Swap and State Shifts. Charts illustrating VLF and Property Tax VLF funding for cities, annexations and incorporations.
- ► Incorporation and annexation: Then and Now. Charts comparing General Fund revenues for annexations and incorporations before 2004 and now.
- ► Jurupa Valley: The Last City in California? by Stephen G. Harding. Western City Magazine, August 2012
- ► Neglecting Annexation and Incorporation Will Not Serve the State's Growth Goals by Kirstin Kolpitcke and Dan Carrigg. Western City Magazine, March 2013
- Remedy for City Annexations and New Incorporations from Impacts of SB89 (2011) and the VLF-Property Tax Swap. A summary of the solution. (PDF)
- The VLF For Property Tax Swap of 2004: Effects on Annexations and New Incorporations. An analysis of provisions in the law regarding funding for annexations and new incorporations. (PDF)
- City by city annual losses due to to the SB89(2011) shift. Includes a sort by legislative district. (PDF)

Assessed Valuation of Real Property for Taxation

California Property Tax Assessors Handbook. California State Board of Equalization.
Directory of California County Assessors. California State Board of Equalization.

Property Tax Administration

County Tax Collectors Reference Manual. California State Controller.

Property Transfer Taxes and Documentary Transfer Taxes - see Other Locally Adopted Revenues

Sales & Use Tax

The second largest source of general purpose revenue for cities statewide and the largest for some California cities, the sales and use tax faces a tenuous future. The local component of the sales and use tax is distributed to cities and counties primarily on point-of-sale.

Overviews and Explanations

Local and District Taxes. Information for jurisdictions, sellers and purchasers from the California Department of Tax and Fee Administration (CDTFA).
Tax Information for City and County Officials: Local Sales and Use Tax, Transactions (Sales) and Use Tax. A comprehensive (though dated) guide to the mechanics of California's Sales and Use Tax. California State Board of Equalization. March 2011
Sales & Use Tax info and resources from the California Department of Tax and Fee Administration: rates, procedures, exemptions, etc.
Detailed Description of the Sales & Use Tax Rate. California Department of Tax and Fee Administration. Breakdown of the allocation of the basic 7.5% sales and use tax rate (includes 0.25% additional voter approved rate effective 1/1/2013 ending 12/31/16. Does not include local district transactions and use taxes.
California City and County Sales & Use Tax Rates. California Department of Tax and Fee Administration. Schedules and tables including composite rates by locality and a list of those jurisdictions with district tax rates (add-on transactions and use taxes).
Proposition 172 Facts . A concise explanation of Proposition 172, the half-cent sales tax for Public Safety adopted by voters as a partial mitigation for ERAF. (PDF)
Tax Expenditure Reports. California Department of Finance. Annual reports detailed stipulated tax exemptions with costs (expenditures) and history of relevant legislative actions.

Data and Statistics

Local Sales and Use Tax Allocations: Distributions of the Local Bradley Burns and Add-on Rates. California Department of Tax and Fee Administration.
Local Sales & Use Tax Revenues (CDTFA & BOE). Historic annual revenue distributions (1998-99 through FY2017-18) to cities and counties from the 1% Local Bradley Burns rate, revenues per capita, revenues as a percentage of general revenues. Compiled from California BOE and CDTFA reports. Includes RDA allocations. Per capita and per general revenue ratios. (Excel)
Local Sales & Use Tax Revenues (SCO). Historic revenues by city from the 1% Local Bradley Burns rate, revenues per capita, summary statistics as reported by local agencies to the State Controller. Through FY11-12. August'14 (Excel) Caution: may or may not include add-on rates, triple flip reimbursements. BOE statistics (above) are more reliable.
California State Board of Equalization Annual Reports. Sales and use tax, property tax, motor vehicle fuel license tax, and more data on BOE administered revenues.

Local Transactions and Use Taxes: "Add On" Sales Taxes

Local and District Taxes. Information for jurisdictions, sellers and purchasers from the California Department of Tax and Fee Administration (CDTFA).
Tax Information for City and County Officials: Local Sales and Use Tax, Transactions (Sales) and Use Tax. A comprehensive (though dated) guide to the mechanics of California's Sales and Use Tax. California State Board of Equalization. March 2011
District Taxes (Sales and Use Taxes). Important implentation on Transactions and Use Taxes (referred to as "District Taxes" by the CDTFA and BOE) California Department of Tax adn Fee Administration. April 2018
Information for Jurisdictions Contemplating a New District Tax. (AKA Add-On Sales Tax, Transactions and Use Tax) Frequently asked questions, answers and contact info. California Department of Tax and Fee Administration
Local Add-On Sales Taxes: The Rise of Transactions and Use Taxes for Cities. A discussion of trends in proposals and approvals of transactions (sales) and use taxes. (PDF) Updated March'17
Transportation Sales Taxes: Countywide Transactions and Use Taxes. A discussion of proposals and imposition of countywide transactions (sales) and use taxes for special purposes. (PDF) Updated Sept'10
California City and County Sales & Use Tax Rates. California Department of Tax and Fee Administration. Schedules and tables including composite rates by locality and a list of those jurisdictions with district tax rates (add-on transactions and use taxes).
Payments to Special Districts (sic) from the Transactions and Use Taxes. California Department of Tax and Fee Administration.

The Sales Tax Triple Flip

Unwinding the Triple Flip. A detailed explanation of the concluding actions of the Triple Flip. (PDF) Feb'15
Department of Finance letter to counties explaining the final reimbursement.
Final Reimbursement calculations for each county. Payments to be made to county Sales and Use tax funds on July 7, 2016 for disbursement within 60 days.
The Sales & Use Tax "Triple Flip." Explanatory info from the California State Board of Equalization. (PDF)
Estimated Sales and Use Tax Compensation Fund Allocations. State Department of Finance estimated sales and use tax compensation fund amounts (triple flip compensation) for cities and counties including prior year settle-up amounts. Via HdL Companies.
County Auditor Procedures for the Implementation of the Triple Flip and VLF Swap . See "SB1096 Gymnastics" in the Califronia Property Tax Managers Manual prepared by the California State Assocaition of County Auditors. (PDF)
Accounting for Local Revenue Realignments Adopted in the 2004-05 State of California Budget. Feb 2005 California Committee on Municipal Accounting. (PDF)
Triple Flip True Up Amounts for FY04-05 from California Department of Finance. This reflects a reduction in most city's Property Tax in Lieu of Sales & Use Tax compensation for FY04-05 (but paid/reduced in January 2006) due to DOF's change in estimating methodology. (Excel)
Flips, Swaps & Settle-Ups: The New In-Lieu Property Taxes. Presentation by Michael Coleman and Vallejo Asst Finance Director Susan Mayer from the Dec 2, 2005 League of California Cities Financial Management Seminar in Monterey, CA (PDF)

Federal Aviation Administration (FAA) Rule on Use of Revenues

Federal Aviation Administration Rule Requires Use of State and Local Tax Revenues for Airport Purposes July 2015 UPDATED with 11/25/2015 California DOF response and guidleines

Sales Tax Issues: Interagency Competition, Allocation, Concentration, Local Kickbacks

► The Local Sales and Use Tax “Sourcing”: Rules for Rate and Allocation. An in depth look at California's rules and some ideas for change. Michael Coleman. February 12, 2018
► "The Bradley-Burns Tax and Local Transportation Funds". Report 2017-106 of the California State Auditor, November 2017
► Evaluating Some Options for Sales Tax Reform - Coleman. League of California Cities Policy Committees. 6 April 2015
► Local Sales Taxes in California: Demographics, Technology and Giving it Away - Coleman. League of California Cities City Managers' Department Meeting January 2015
“Sales Taxes in an E-Commerce Generation” David R. Agrawal and William F. Fox. University of Kentucky. August 1, 2015 <=argument for destination sourcing.
“Marketplace Fairness Coalition Lends Strong Support to New Chaffetz Effort Aimed at Closing Antiquated Online Sales Tax Loophole” June 2015.
“Origin Sourcing and Tax Incentive Programs: An Unholy Alliance” by Jennifer Carr. State Tax Notes. May 27, 2013.
“Tax Rebate Deals are Bad News for Communities” by Chris O’Brien. San Jose Mercury News. June 23, 2012
“Sales Tax Deals in California, involving dome Illinois-based Consultants, Under Legal Scrutiny” by Kathy Bergen. Chicago Tribune. September 18, 2011
“Sales Tax Rebates: Run Amok in Illinois” by Geoffrey Propheter. State Tax Notes. October 17, 2011
Outline: Sales and Use Tax - The Need for Reform Presentation to the League of California Cities Revenue and Taxation Policy Committee. January 2015
. . . . . . Local Sales Taxes in California: Demographics, Technology and Giving it Away - DeLlamas, Coleman, Jensen
California Cities and the Local Sales Tax. Paul G. Lewis and Elisa Barbour. Public Policy Institute of California. 1999
City Competition for Sales Tax: Symptom of A Larger Problem? Paul G. Lewis and Elisa Barbour Nov 1999 Western City.
Allocating Local Sales Taxes. Legislative Analyst's Office 2007

Sales Tax Issues: Remote & Internet Sales, Simplification and Conformity (Also see above section)

► AB 147 (Burke 2019), California’s New On-Line Sales Tax Collection Law: What Cities and Counties Need to Know. May 1, 2019.

CDTFA Special Notice April 2019: New Use Tax Collection Requirements for Remote Sellers and New District Use Tax Collection Requirements for All Retailers—Operative April 1, 2019.

South Dakota v. Wayfair Inc. 138 S.Ct. 2080 (2018) SCOTUSblog resources including links to the judgement, coverage, proceedings and orders
Streamlined Sales Tax Project (SSTP). Multi-state project seeking improvement and standardization of sales and use taxes.
- SSTP California Board of Governance representing California on the Streamlined Sales Tax Project pursuant to SB157 (Chapter 702, 2003) including meeting agendas and reports.
- The Streamlined Sales and Use Tax Agreement: A California Perspective, Martha Jones, California Library Research Bureau, Feb 2005.
- Analysis of Specific Sections of the SSTP Agreement by Board of Equalization staff.

Sales Tax Issues: Base Broadening, Exemptions

► Evaluating Some Options for Sales Tax Reform - Coleman. League of California Cities Policy Committees. 6 April 2015
Local Sales Taxes in California: Demographics, Technology and Giving it Away - Coleman. League of California Cities City Managers' Department Meeting January 2015
Outline: Sales and Use Tax - The Need for Reform Presentation to the League fo California Cities Revenue and Taxation Policy Commeittee. January 2015
. . . . . . Local Sales Taxes in California: Demographics, Technology and Giving it Away - DeLlamas, Coleman, Jensen
Why Have Sales Taxes Grown Slower Than the Economy? Legislative Analyst 2013.
Should California Extend the Sales Tax to Services? California Budget Project 2011.
Expanding Sales Taxation of Services: Options and Issues Michael Mazerov, Center on Budget and Policy Priorities, July 2009.
Publication 61: Sales and Use Taxes: Exemptions and Exclusions. California State Board of Equalization.
Tax Expenditure Reports. California Department of Finance.

Utility User's Tax

Utility User Tax Facts. Key facts about Utility User Taxes in California. revised January '17 (PDF)
Utility User Tax by city through FY14-15. Current rates. Historic revenues, revenues per capita, revenues as % of general revenues, summary statistics. January'17 (Excel)

Other Locally Adopted Revenues: Business Tax, Hotel Tax and Others.

General Revenues by city. Historic revenues, summary statistics. Through FY14-15. April'17 (Excel)

Local Taxes - Other than Property Tax, Sales Tax, Utility User Tax

Admissions Tax Revenues. Historic revenues, summary statistics. Through FY14-15. April'17 (Excel)
Business License Tax by city. Historic revenues, summary statistics. Through FY14-15. April'17 (Excel)
- Business permit, tax, and license requirements of California cities, counties and others from CalGOLD.
Construction Development Tax Revenues by city. Historic revenues, summary statistics. Through FY14-15. April'17(Excel)
Parking Tax Revenues by city. Historic revenues, summary statistics. Through FY14-15. April'17 (Excel)
Property Transfer Tax / Documentary Transfer Tax Revenues. Historic revenues, summary statistics. Through FY14-15. April'17(Excel)

Property Transfer Tax / Documentary Transfer Tax Rates. Current City and county tax rates. Dec'16 (PDF)

Transient Occupancy Tax by city. Current rates, revenues, per capita, and % of general revenues and summary statistics. Through FY15-16. June'19 (Excel)
- TOT Losses From On-line Hotel Bookings. A bulletin. (PDF)
- Administration of TOT: County Tax Collectors Reference Manual - Chapter 1300 Transient Occupancy Tax. California State Controller 2012. NOTE: TOT is administered by each individual city and county but the State Controller Manual provides guidelines for best practices.

Fees, Permits, Fines and Forfeitures, etc.

Construction Permit, Inspection Fee, and Planning Fee Revenues by city. Historic revenues and per capita. Through FY14-15. April'17 (Excel)
Electric and Gas Utilities (city operated) Revenue statistics. Historic revenues, summary statistics. Through FY14-15. April'17 (Excel)
Fines, Penalties and Forfeitures by city. Historic revenues and per capita. Through FY14-15. April'17 (Excel)
Franchise Revenues by city. Historic annual revenues, summary statistics. Including solid waste, telecommunications and other franchises. Through FY13-14. July'15 (Excel)
- Video Service Franchising: AB2987 of 2006: AB2987 (Nunez/Levine) text. Assembly Floor Analysis.
Rents and Concessions Revenue by city. Historic revenues and per capita. Through FY14-15. April'17(Excel)
Vehicle Code Fines by city. Historic revenues and per capita. Through FY14-15. April'17 (Excel)

Local Tax Votes

Approval Requirements for State and Local Revenues . A summary of the voting requirements for state and local revenue increases.

Analyses of Local Revenue Measures in California

► Local Supermajority Rules and Results. What difference would a 55% threshold make? Updated January'14
► Reforming California Local Finance: Should the Local Vote Rules Be Reversed? Analysis and opinion by Michael Coleman. April 2013
► An Overview of Local Revenue Measures in California Since 2001. Summary and analysis of passage rates. Updated Januray'17
The Rise of Local Add-On Sales (Transactions and Use Taxes) in California. A discussion of trends in proposals and approvals of transactions (sales) and use taxes. March'17
Transportation Sales Taxes: Countywide Transactions and Use Taxes. A discussion of countywide transportation add-on sales taxes (transactions and use taxes), looking at current rates in effect and the history of such proposals with the voters. Updated Oct'12
The Rise of Local Ballot Measures on Public Employee Compensation. A look at recent local measures. March 2011
Fiscal Effects of Voter Approval Requirements on Local Governments. Kim S. Rueben and Pedro Cerdan. Public Policy Institute of California. 2003
The Local Initiative in California. Tracy Gordon. Public Policy Institute of California. 2004

Summary Reports and Analyses of Elections - California Local Ballot Measures

Votes on Local Taxes and Other Revenue Measures June 2014

Resources for Local Ballot Measure Efforts

Resources for Ballot Measure Activities. Explainations of the restrictions on using public resources (including staff time, agency supplies and other resources paid for with taxpayer dollars) for ballot measure activities. Institute for Local Government.

VLF: The Motor Vehicle In-Lieu Tax

Established in 1935 as a uniform statewide tax, the VLF is a tax on the ownership of a registered vehicle in place of taxing vehicles as personal property. By law, all revenues from the VLF fund city and county services, but the state legislature controls the tax rate and the allocation among local governments. In 2004, the Legislature permanently reduced the VLF tax rate and eliminated state general fund backfill to cities and counties. Instead, cities and counties now receive additional transfers of property tax revenues in lieu of VLF.

Property Tax in Lieu of VLF, also called Vehicle License Fee Adjustment Amount (VLFAA) is Property Tax, not VLF. It should be budgeted, accounted for, and reported as property tax, not VLF and not intergovernmental. To avoid confusion, it should be called "Property Tax in Lieu of VLF" and not "VLF."

City VLF Revenues. An update on current VLF revenues with brief history and detailed estimates of the annual loss of VLF for each city due to SB89(2011). Updated January 30, 2012
State Controller VLF Apportionment Reports.
VLF Revenues by city. Historic revenues, revenues per capita, revenues as % of general revenues, summary statistics. (Excel)
The Incidence of the Vehicle License Fee. Jennifer Dill, Todd Goldman, and Martin Wachs; Institute of Urban and Regional Development, UC Berkeley 1999. (PDF)

VLF for Incorporations and Annexations

SB130 (Roth) of 2017 signed to fix VLF-Property-Tax Problem for California's Four Newest Cities. Summary of the issue and the fix. (PDF)
SB130 (Roth) of 2017 Text
► State Policy Disconnect: Fiscal Shifts Imperil New City Incorporations and Annexations of Developed Areas. A summary of the problems created by SB89 (2011) and their roots in the VLF-Property Tax Swap of 2004. (PDF)
► Jurupa Valley: The Last City in California? by Stephen G. Harding. Western City Magazine, August 2012
► Neglecting Annexation and Incorporation Will Not Serve the State's Growth Goals by Kirstin Kolpitcke and Dan Carrigg. Western City Magazine, March 2013
Remedy for City Annexations and New Incorporations from Impacts of SB89 (2011) and the VLF-Property Tax Swap. A summary of the solution. (PDF)
The VLF For Property Tax Swap of 2004: Effects on Annexations and New Incorporations. A detailed 2006 analysis of provisions in the law regarding funding for annexations and new incorporations that led to the passage of AB1602(2006) which was later carelessly oblitertated by the Legislature by SB89(2011). (PDF)
City by city annual losses due to to the SB89(2011) shift. Includes a sort by legislative district. (PDF)

Property Tax in Lieu of VLF

See under Property Tax

State Funding

✔ Regarding infrastructure bond funds, see "2006 Infrastructure Bonds: Proposition 1B, 1C, 84" under California State Budget.
✔ Regarding the history and issues surrounding state funding of California municipalities, see "The State-Local Fiscal Relationship."
✔ Regarding transportation funds (Prop 42 gas tax, highway users tax, etc., see "Transportation Funding."

Supplemental Law Enforcement Account (SLESA) / Citizens Option for Public Safety (COPS). Frontline Law Enforcement allocations. California State Controller.
- Citizens Option for Public Safety (COPS) Growth Account California State Controller.
Local Detention Facility Booking Fees. A fact sheet. rev. Feb'13 (PDF)
- State Controller Apportionments: Booking and Processing Fees Apportionment. California State Controller
- Uniform Guidelines For the Implementation of Assembly Bill 1805 Concerning Provisions Relative to Changes in Jail Booking Fee Charges Effective July 1, 2007.
Proposition 172 Facts. A concise explanation of Proposition 172, the half-cent sales tax for Public Safety adopted by voters as a partial mitigation for ERAF. (PDF)
- Net Impact of ERAF, Prop 172 and COPs (73k) ERAF, Proposition 172 and COPs apportionments for all cities, counties and special districts.
- The Proposition 172 Half Cent Sales Tax: Background for League of California Cities 2005 Annual Conference Resolution #7 (PDF) Proposition 172: The Public Safety Half Cent Sales Tax. Handout version of PowerPoint presentation (Coleman) (PDF)
- See also Educational Revenue Augmentation Fund (ERAF) for specific statistics and explanation.
Disability Access and Education Fee. Senate Bill (SB) 1186 (Chapter 383, Statutes of 2012) created Government Code Section 4467. Among other things, this statute requires a one-dollar additional fee to be paid by any applicant for a local business license, permit or similar instrument when it is issued or renewed.
Homeowners' Exemption. Assembly Committee on Revenue and Taxation Revenue and Taxation Reference Book 2006 Chapter 6E.
California State Controller's Office Apportionments. Detailed tables showing the allocation of local government revenues administered by the State Controller.

State grants and local assistance

California State Library Grants Information. The California State Library administers grant programs to libraries including: Library Services and Technology Act (LSTA), federal grants, and Library Bond Act of 2000 for construction and renovation of public library facilities.
California Department of Education Grant Funding. The California Department of Education operates a large number of programs that provide funds to schools and other organizations for a variety of educational purposes.
California Department of Water Resources. GRanTS system to apply for, and manage grants administered by the department.
California Department of Housing and Community Development. State and federal grants and loans for rental and homeownership, including veterans, seniors, young families starting out, people with disabilities, farmworkers, and individuals and families who are experiencing homelessness.
California Commission on State Mandates Info on reimbursable state mandates.
California Department of Transportation Local assistance programs.
California Department of Parks and Recreation Grants and Local Services.
California Energy Commission Energy Partnership Program.

Federal Grants in Aid

Federal Economic Stimulus Package: The American Recovery and Reinvestment Act of 2009
US Department of Housing and Community Development (HUD) Community Development Block Grants (CDBG)
Community Development Block Grant (CDBG) Neighborhood Stabilization Program (NSP). Emergency funding targeted to cities and states to ease the burden of vacant and abandoned houses on neighborhoods that have high rates of foreclosure.
Community Oriented Policing Services (COPs) law enforcement grants.
Federal Grants information at Grants-Dot-Gov.

Best practices guide for local officials regarding the Affordable Care Act. The U.S. Department of Health and Human Services.

Transportation Funding

Overviews and Issue Briefs

California's Transportation System. Legislative Analyst's Office. June, 2018
Cal Facts. Legislative Analyst's Office. 2018
California Transportation Commission Annual Reports. Including funding and use statistics.
UC Davis Institute of Transportation Studies.
UC Berkeley Institute of Transportation Studies.
UC LA Institute of Transportation Studies.
The Future of California Transportation Revenue. A brief history of transportation revenue policies and potential futures in California. Martin Wachs, Hannah King, Asha Weinstein Agrawal. Mineta Transportation Institute Publications (2018).
Transportation For Economic Development. A study of the potential economic benefits of transportation improvements to impoverished areas of California by Cambridge Systematics, Inc. under a contract with the CalTrans. (2003)

Transportation Funding Sources

Local Streets and Roads Funds including Highway Users Tax (Motor Vehicle Fuel Tax) and Road Maintenance and Rehabilitation Account (from RRAA of 2017)
Revenue Allocation Estimates for Budgeting

►California Local Streets and Roads Funding Explainer with Updated Estimates for 2018-19 and FY2019-20. City and county allocation estimates of HUTA, RMRA and TCRF funds based on Dept of Finance estimates released with the May Revision to the Governor's proposed budget May 9, 2019. Includes detailed explanations of allocation rules, use rules, and long term projections.
►Local Streets and Roads Estimates FY2018-19 and 2019-20 HUTA, RMRA and Loan Repayment estimates for cities and counties. May 2019 estimates for both years with HUTA sources combined. Sorted by County ... by Assembly District ... by Senate District.

New Fuel Tax Funding: "Road Repair and Accountability Act of 2017"
- Background and Overview
- Revenue Allocation Estimates for Budgeting
- California Transportation Commission: Local Streets and Roads Funding - Annual Reporting Guidelines
- The California Transportation Committee (CTC) has formally adopted their Local Streets and Roads Annual Reporting Guidelines on August 16. These guidelines outline the process for cities to submit their project lists and expenditure reports to the CTC to establish eligilbilty for recieving SB 1 funds.
- SB1 Road Maintenance and Rehabilitation Account (RMRA) Maintenance of Effort (MOE)
State Controller Audits Division: Local Streets and Roads Funding Guidelines

Guidelines re Gas Tax Expenditures for Cities and Counties. (Under "Other") California State Controller.

History - Revenues and Spending stats

Highway Users Tax allocations. Detailed records of recent payments to cities and counties of state motor vehicle fuel tax (gasoline excise tax) under Streets and Highways Code Sections 2104-2107.5. State Controller's Office.
Road Maintenance and Rehabilitation Account - Cities. Records of recent payments to cities of state motor vehicle fuel tax (gasoline excise tax) from SB1, the Road Repair and Accountability Act of 2017 through the Road Maintenance and Rehabilitation Account (RMRA) under Streets and Highways Code Sections 3290. State Controller's Office.
Road Maintenance and Rehabilitation Account - Counties. Records of recent payments to counties of state motor vehicle fuel tax (gasoline excise tax) from SB1, the Road Repair and Accountability Act of 2017 through the Road Maintenance and Rehabilitation Account (RMRA) under Streets and Highways Code Sections 3290. State Controller's Office.
Highway User Tax historic city by city revenues. City by city historical data and summary statistics on the allocation of state motor vehicle fuel tax (gasoline excise tax) to cities and counties under Streets and Highways Code Sections 2104-2107.5. Through FY13-14. October'15 (Excel)
Streets Spending by City. Historic operating, total and net spending for streets, roads, storm drains, street lighting and street landscaping services and programs by cities. Per capita and percent of general revenue comparisons and summary statistics. Through FY13-14. October'15 (Excel)

Proposition 1B

Proposition 1B: Comprehensive Program information.
Text of the law: SB1266 Perata and Nunez.
Local Streets and Roads program.
- City and county allocations Calif State Controller.

City Program Expenditures

Are California Cities Required to Have Budgets? No. But ... April '13
Appropriations Limits by city. Historic Gann Limits and appropriations subject to limit. Through FY13-14. Sept'15 (Excel)
City Expenditures by Category. Total expenditures, salary & benefits, contracts, materials & supplies. Percent of total expenditure comparisons and summary statistics. Through FY13-14. March'15 (Excel)
City Service Responsibilities. California Cities have differing funding responsibilities and methods of providing services. Per Capita spending and reported service method by city. Aug'10 (Excel)
Fire and Emergencey Services Spending by City. Historic operating, total and net spending for fire and emergencey medical services by cities. Per capita and percent of general revenue comparisons and summary statistics. Through FY13-14. Sept'15 (Excel)
Fire Staffing by City. Historic paid and volunteer firefighters. Total budgeted staffing and per capita by city. Through FY15-16. Aug'19 (Excel)
Police Spending by City. Historic operating, total and net spending for police services by cities. Per capita and percent of general revenue comparisons and summary statistics. Through FY15-16. Aug'19 (Excel)
Police Staffing by City. Historic budgeted police officers, total police staffing, volunteers and per capita officers by city. Through FY15-16. Aug'19 (Excel)
Police, Fire and EMS Spending by City - per capita and as a percentage of general revenue. Historic, city-by-city statistics. Note that not all cities are responsible for providing and funding fire services. Through FY13-14. Sept'15 (Excel)
Library Spending by City. Historic operating, total and net spending for library services and programs by cities. Per capita and percent of general revenue comparisons and summary statistics. Through FY13-14. October'15 (Excel)
Parks & Recreation Spending by City. Historic operating, total and net spending for parks and recreation services and programs by cities. Per capita and percent of general revenue comparisons and summary statistics. Through FY13-14. October'15 (Excel)
Streets Spending by City. Historic operating, total and net spending for streets, roads, storm drains, street lighting and street landscaping services and programs by cities. Per capita and percent of general revenue comparisons and summary statistics. Through FY13-14. October'15 (Excel)
Comparing State and Local Government Finances. Charts comparing revenues, taxes and spending of the state, cities and counties over the last thirty+ years. June'06 (PDF 34kb)
Comparing State and Local Government Employment. Charts comparing employment the state, cities, counties and schools over the last fifteen+ years. June'06 (PDF 34kb)

Reserves and Fund Balance

Determining the Appropriate Level of Unrestricted Fund Balance in the General Fund. Government Finance Officers Association.
Sizing Your Reserves. Slides from a 2013 GFOA presentation by Pall Gundgeirson, Kara Skinner, and Shayne Cavagnaugh.
Fiscal Issues Related to General Fund Reserves. Thoughtful policy analysis for the City of Tracy. Zane H. Johnston 2006.
The Adoption of Reserve Policies in California Cities. Anita Lawrence 2001.
Special District Reserve Guidelines. California Special Districts Association 2013.

The Gann Appropriations Limit

The Article XIIIB Appropriations Limit. A guide to the completing your agency's calculations Chapter Ten of the 2014 Edition of the California Municipal Revenue Sources Handbook.
Calculating Your Agency's Gann Appropriations Limit and Expenditures Subject to Limit Intra-active worksheets. (Excel)
Price and population numbers for use in Gann limit calculations. California Department of Finance. Look for "Price and Population Factors Used for Appropriations Limit Calculations" toward bottom of page.

Municipal Debt Financing

California Debt Issuance Primer and Overview. A 40 page summary of the comprehensive California Debt Issuance Primer including on-line links. California Debt and Investment Advisory Commission, Office of the State Treasurer. Oct 2005. (PDF).
California Debt Issuance Primer. Extensive, comprehensive guidebook on municipal debt financing in California. On-line version is regularly updated. California Debt and Investment Advisory Commission, Office of the State Treasurer. March 2006. 660 pages (PDF).
An Overview of (California) Local Government Bond Issuance Trends (1985-2005) California Debt and Investment Advisory Commission, Office of the State Treasurer. 2008. (PDF).
Guidelines for Mello-Roos Financing. California Debt and Investment Advisory Commission, Office of the State Treasurer. 1991. (PDF).
Guidelines for Leases and Certificates of Participation. California Debt and Investment Advisory Commission, Office of the State Treasurer. 1993. (PDF).
Looking Beyond the Horizon: California Debt Affordability Reports. California State Treasurer.
California Debt Issuance Database. California Debt and Investment Advisory Commission, Office of the State Treasurer.
The California Infrastructure and Economic Development Bank (I-Bank). Located within the California Business, Housing and Transportation Agency, I-Bank finances public infrastructure and private investments that promote economic growth, revitalize communities and enhance the quality of life throughout California.
The California Debt and Investment Advisory Commission (CDIAC). CDIAC provides information, education and technical assistance on public debt, investments, and economic development financing tools to local public agencies and other public finance professionals.
California Statewide Communities Development Authority (CSCDA). CSCDA is a joint powers authority sponsored by the California State Association of Counties and the League of California Cities to provide local governments and private entities access to low-cost, tax-exempt financing for projects of public benefit.
Pension Obligation Bonds
Government Finance Officers Association Advisory: Pension Obligation Bonds. "GFOA recommends that state and local governments do not issue POBs...."
Pension Obligation Bonds: Risky Gimmick or Smart Investment? by Eric Schulzke. Governing Magazine. January 2013.
An Introduction to Pension Obligation Bonds and Other Post-Employment Benefits. Third Edition. Roger Davis. Orrick, Herrington & Sutcliffe.
Pension Obligation Bonds: Are States and Localities Behaving Themselves or Do the Feds Need to Get Involved? by Allan Beckmann. Spring 2010. A paper submitted to the faculty of the University of North Carolina at Chapel Hill in partial fulfillment of the requirements for the degree of Master of Public Administration.
California agencies gamble on pension bonds to cover debts and lose by Jennifer Gollan. October 2013. Center for Investigative Reporting.

California State Budget: Content and Analysis.

Regarding impacts of the state budget on municipalities see "Cities and the California State Budget."

Data
♦Historical State Budget Revenue and Expenditure Data. Legislative Analyst's Office. Excel pivot tables of state revenues and expenditures through the current year. Best data source.
♦Summary Budget Schedules and Charts. Department of Finance.
California Department of Finance homepage - including other budget links.
Analysis
Legislative Analyst's Office Budget Reports including analyses, and hearing hand-outs.
- Cal Facts 2018. Legislative Analyst's Office.
Assembly Budget Committee Reports and Links
Senate Budget Committee Reports and Links
California Budget & Policy Center.
- CBPC State Tax Policy Briefs.
Next-Ten's California Budget Challenge. Roll up your sleeves and create your own state budget for the next 10 years. Informative and well crafted. You'll also find quick facts and briefing sheets on major state financial issues.
Tax Expenditures (exemptions - breaks)
Tax Expenditure Report. California Department of Finance.
Tax Expenditures: Policy Issues. California Legislative Analyst 2009.
Tax Expenditure Programs. California Legislative Analyst 2007.

Infrastructure Bonds

Cities and the California State Budget

Regarding the history and issues surrounding state funding of California municipalities, see "The State-Local Fiscal Relationship."

See Latest info on state budget and legislative issues from the League of California Cities.
- City Advocate Weekly, League of California Cities.
- Press Releases, League of California Cities
- Recent presentations on state budget impacts.

Links to Sites with More Data and Reports

Data: Socio-Economic
The Data Source Handbook A list of state, federal and private data providers in subject areas related to the people of California. California Department of Finance.
California Department of Finance - Demographic estimates and projections
California Department of Finance - Economic estimates and projections
California Department of Finance - Price and Population Data for the Calculation of Appropriation Limits. Go to bottom of the page.
California Department of Finance - Reports.
California Department of Finance - Monthly Economic and Revenue Updates
California Employment Development Department Labor Market Information.

California Department of Industrial Relations (DIR) California Consumer Price Index (CPI)
United States Department of Labor, Bureau of Labor Statistics, Western Region, CPI Summaries

U.S. Census Guide: How to Get the Most Out of Census.gov from backgroundchecks.org
U.S. Census Bureau Government Statistics Census of Governments, Government Finance and Employment Classification Manual, Governments Integrated Directory public employment & payroll, federal state and local government finance, public employee retirement systems, state and local government tax collections, federal expenditures, Federal Audit Clearinghouse, criminal justice statistics, elementary-secondary education statistics, library statistics.
U.S. Census Bureau - Local Government Employment Data. Statewide summary.
U.S. Census Bureau - Employment of Major Local Governments
U.S. Census Bureau - California (or other state) Quick Facts. State and county demographic statistics and more.
U.S. Census Bureau - California QuickFacts. Various summary facts and links to datasets on California.
American Community Survey US Census Bureau community level data. Updated estimates of social and economic characteristics for California, counties, incorporated cities and Census Designated Places. U.S. Census Bureau
. Selected data from the American Community Survey from the California Department of Finance.

US Department of Housing and Urban Development "State of the Cities Data System" Data for individual metropolitan areas, central cities, and suburbs. Detailed demographic and economic characteristics of the population; unemployment rates; information on jobs, business establishments, and average pay in the 1990s; and FBI crime data.

California Department of Tax and Fee Administration Research and Statistics
State Controller's Monthly Analysis of State General Fund Cash Flow and Economic Snapshot.

California Department of Transportation Division of Research, Innovation and System Information. A variety of California streets and highways statistics.
National Association for Business Economics.
DataQuick Real Estate News. Home sales, pricing, and mortgage charts and statistics.
Financial Forecast Center. An assortment of US economic data and forecasts.
City-Data.com. Profiles of US cities and towns with graphs and data drawn from a wide variety of sources.
California Online Directory. State employee phone / address directory

Data: Government Finance

State Budget

California State Budget Includes summary charts and tables on various state and local revenues.
Next 10. Well crafted informational tools regarding California's Budget and Infrastructure.

State and Local Revenue Collections and Allocations

California Department of Finance Statistical Abstract
Monthly Finance Bulletin California Department of Finance.
California State Board of Equalization Annual Reports sales and use tax, property tax, motor vehicle fuel license tax, and more data on BOE administered revenues.
California Department of Tax and Fee Administration. Explanatory materials on various CDTFA administered taxes.
California State Board of Equalization - Pre-July 2017 Research and Statistics. Most funtions of the BOE were reorganized into the CDTFA in July 2017.
California State Controller's Office Local Government Apportionments. Reports of allocations of State Controller administered state revenues to local governments, state mandate reimbursements and other information.
California State Controller Guides, Manuals, and Reference Materials for local agencies Accounting, expenditure and auditing standards and references.
California Franchise Tax Board Annual Reports. Concerning FTB administered taxes.
Tax Policy Center Statistics Comparative tax information. Compiled by the Urban Institute / Brookings Institution.

Local Government Revenues and Spending

State Controller's Office Local Government Annual Reports. Reported revenues and spending for California local governments.

ByTheNumbers.sco.ca.gov. City and County financial data from annual reports submitted to the state controller 2003-2013. Selectable data with nifty instant displays.
NOTE: although the data is much less accessible, there is more detail in the actual annual reports - see link above
NOTE: Data files on this site (also from state Contoller reports) provide detail by city back to 1991, more detailed breakdown, per capita adjustments and more. See for example Property Tax by city.

California Debt and Investment Advisory Commission publications including debt issuance data and issue briefs.
US Census Bureau Government Statistics including Census of Governments
Summary of State and Local Finances.
The HdL Companies Briefing sheets and data on local sales taxes and property taxes.

Grants and local assistance

State Grants Database. Listing of grant programs administered by the state of California.
California Coastal Commission Local Coastal Program Grants.
California Department of Housing and Community Development Loan and grant programs.
California Commission on State Mandates Info on reimbursable state mandates.
California Department of Transportation Local assistance programs.
California Department of Parks and Recreation Grants and Local Services.

Articles / Analysis / Opinion

Western City Magazine Monthly magazine of the League of California Cities.
Public Policy Institute of California A private, nonprofit organization dedicated to independent, nonpartisan research on California's economic, social, and political issues.
The Tax Policy Center. Provides analysis and facts about tax policy. A joint venture of the Urban Institute and Brookings Institution.
National League of Cities special reports. Topic: Finance.
Legislative Analyst's Office Provider of fiscal and programmatic expertise and nonpartisan analyses of the state's budget to the California Legislature.
CalTaxDigest articles from the California Taxpayers Association.
California Research Bureau reports, an office of the California State Library.
California Budget & Policy Center A nonprofit research and public education organization addressing state fiscal policy.

Law & Legislation

State Law

California Constitution, Searchable. California Legislative Counsel.
California Law Codes, Searchable. California Legislative Counsel.
California Administrative Regulations. California Office of Administrative Law.
California Court Decisions. Judicial Council of California.
Attorney General Opinions. California Attorney General's Office.
Federal and State Laws, Cases and Codes from FindLaw
California Municipal Law Handbook League of California Cities.
Colantuono, Highsmith, Whatley PC. Papers reviewing the latest legal issues in California local government finance.
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State Legislation

Daily File: California State Senate (includes links to listen where available)
State Senate Hearings - Audio and television
Governance and Finance Committee, California State Senate
Budget and Fiscal Review Committee, California State Senate

Daily File: California State Assembly (includes links to listen where available)
State Assembly Hearings - Audio and television
Local Government Committee, California State Assembly
Revenue and Taxation Committee, California State Assembly
Other info on the State Assembly, its procedures and its members

Search California Legislation. Searchable, includes text, status, votes and committee analyses. California Legislative Counsel.
California Legislative and Legal History index. UCSF Hastings Law Library.
Legislative Analyst's Office Non-partisan advisor to the State Legislature.
California Department of Finance Legislative Analyses. The Administration's view.
The Roundup. Daily news from the state capitol.
.

Court Decisions

California Courts Home Page
Slip Opinions of CA Court Decisions
Ninth Circuit Opinions Since 6/95
Findlaw Search of Ninth Circuit Opinions Since 1996
Findlaw Search of CA Supreme Court & Appellate Court Opinions 1934 - Present
.

City and County Law and Legislation

California City and County Codes and Charters (UC Berkeley Institute of Government Studies Library).
California Local Planning Documents Database (UC Berkeley Institute of Government Studies Library) - Searchable database of city and county planning documents collected by the IGS Library.
.

California Ballot Propositions

Legislative Analyst's Office's analysis of current and recent ballot propositions
California Secretary of State's Ballot Pamphlets On-line 1996 onward.
California Secretary of State's Ballot Initiative Updates.
Legislative Analyst's Office's fiscal analyses of proposed initiatives
California Attorney General: Initiative Measures in circulation . Full text of proposed initiative measures.
California Ballot Propositions Historic since 1911. Hastings College Law Library.