Assembly Bill 95 is a response to the state s action that shifted billions in property tax dollars from counties, cities and special districts into public education. Property taxes are the funding base for local governments that are in dire need of fiscal relief, Ashburn said. In 1992, the state began to siphon property taxes from local governments in an attempt to balance its own budget. The state used these funds to cover its own financial obligation to schools as dictated by Proposition 98. When the state took this money, it undermined the ability of local governments to provide the most basic services, such as fire protection, law enforcement, public health and transportation, Ashburn continued.
Local governments are the most efficient, most effective form of government.
They provide services that have, perhaps, the greatest impact on the quality of our daily lives. We must restore their base of funding so that counties have the resources to provide those services. AB 95 would initially cap ERAF contributions at the 1996-1997 level, and then reduce the fund to zero over a period of ten years. The bill would hold schools harmless by requiring the state to backfill any fiscal impact on California schools. Putting an end to the state s annual property tax take-away will place local governments on the road to recovery, Ashburn concluded.