Grassroots Action Center

Sub-Committees to Begin Hearing 2017-18 State Budget [REVENUE, FINANCES, AND TAXATION]

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Sub-Committees to Begin Hearing 2017-18 State Budget

On Tuesday, January 10, Governor Jerry Brown presented his 2017-18 State Budget proposal, which takes into consideration slowed revenue growth and the likelihood of an economic downturn.

With this first step in the state budgeting process completed, the State Legislature will now turn to hosting dozens of Budget Sub-Committee hearings in their respective houses. CSDA members can look to the CSDA Blog at of regular updates on the most significant actions.

  • Contained in the budget proposal are a number of items that potentially impact special districts, including:
    RDA Residual—Anticipation of the restoration of $260 million in property taxes to special districts in 2016-17 and 2017-18 combined due to the continued wind-down of former redevelopment agencies. The budget anticipates future ongoing property tax revenues of more than $900 million annually to be restored to special districts, cities, and counties. From 2011-12 through 2015-16, special districts have received approximately $658 million in property tax restoration.
  • Cap-and-Trade Revenue—Continued allocation of cap-and-trade auction revenue. Despite recent volatility in cap-and-trade auction proceeds, the state has appropriated $3.4 billion to date in auction proceeds to reduce greenhouse gas emissions. In an effort to reduce auction volatility and uncertainties about the program’s future beyond 2020, the governor will propose, through a two-thirds urgency vote, legislation to confirm the Air Resources Board’s authority to administer cap-and-trade auctions beyond 2020.
  • Tree Mortality Funding—The budget includes $52.7 million from the general fund for the Office of Emergency Services to provide assistance through the California Disaster Assistance Act, which can be used to aid local agencies in the removal of dead or dying trees that are a direct threat to public safety.
    Proposition 1 Water Bond—The budget provides an increase of $248 million in Proposition 1 funding for integrated regional water management projects, intended to encourage collaboration in managing a region’s water resources, setting regional priorities for water infrastructure, and improving regional water self-reliance.

Legislators will conduct Budget Subcommittee Hearings over the coming months, with the Governor’s May Revise due out in mid-May. The final budget must be passed by the June 15 Constitutional deadline. Stay tuned to CSDA’s Blog and eNews for analyses of the various proposals that arise.

Hot Legislation

  • SCA 3 (Dodd) Library Bonds – PENDING

STATUS: Introduced

Lowers the vote threshold for library bonds from two-thirds to 55 percent.

  • SB 231 (Hertzberg) Prop. 218 Omnibus Amendment– PENDING

STATUS: Introduced

Defines the term “sewer” to include stormwater in an attempt to clarify that stormwater charges should be considered property-related fees, subject to the majority protest provisions of Proposition 218 versus a special tax two-thirds vote threshold.

  • SCA 4 (Hertzberg) Prop. 218 Constitutional Amendment – PENDING

STATUS: Introduced

Intends to amend the State Constitution in order to allow local agencies to offer low-income residents reduced water rates, and provide enhanced authority for conservation pricing.


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