Redevelopment agencies are the fastest growing group of local entities in terms of their expenditures. They also represent a type of entity that cities and counties use to provide financing for their infrastructure and community development needs. After passage of Proposition 13 in 1978, the state increased its funding of schools and shifted property tax allocations from schools to other local entities to mitigate their Proposition 13 revenue losses. Since 1993-94 there has been no legislation significantly changing the allocation of the property tax. County Budgets Are Largely DrivenBy State Policy Choices Over one-half of county revenues come from the state and federal governments.
Property taxes are the largest general purpose revenue source.
County expenditures are largely dictated by state laws and budget actions, with more than half of county revenues being spent for health and public assistance. City Budgets Reflect Local Preferences City revenues are generated from a variety of taxes and user charges, with only a small amount of state and federal aid. User charges and taxes each account for about one-third of city revenues statewide. Cities provide a wide variety of direct services to residents and are involved in the development of civic infrastructure. Cities spend about one-fourth of their budgets for public safety activities, including police and fire protection.