Senate Bill 450 aims to establish the means for administering the distribution of the funding within the Special District Fire Response Fund, a subaccount within the California Fire Response Fund, established as a result of the passage of Proposition 19 (2020). Recent amendment language added a new section to the bill, providing specified instructions to the California Office of Emergency Services (Cal OES) that would affect district eligibility and application procedures.
Recall that, as a result of the passage of Prop. 19, all homeowners who are over 55 (or who meet other qualifications) are eligible for property tax savings when they move (only inherited properties used as primary homes or farms would be eligible for property tax savings).
Section 2.2 of Article XIIIA of the California Constitution directs the California Director of Finance, on or before September 1, 2022, and on or before each subsequent September 1 through September 1, 2027, to calculate the additional revenues and savings that accrued to the state from the implementation of Section 2.1 (which eliminated certain tax breaks for certain inherited properties), including, but not limited to, any increase in state income tax revenues and net savings to the state arising from any reduction in the state’s funding obligation under Section 8 of Article XVI (state-obligated public school funding), during the immediately preceding fiscal year ending on June 30.
On or before September 1, 2028, and each subsequent September 1 thereafter, the Director of Finance shall establish the amount of funding by calculating the additional revenues and savings that accrued to the state from the implementation of Section 2.1, including, but not limited to, any increase in state income tax revenues and net savings to the state arising from any reduction in the state’s funding obligation under Section 8 of Article XVI during the immediately preceding fiscal year ending on June 30, then multiplying the amount from the immediately preceding fiscal year ending on June 30 by the rate of increase in property tax revenues allocated to local agencies in that fiscal year. Upon determining the respective levels of these funding amounts, 75 percent is placed into the California Fire Response Fund; 80 percent of that smaller percentage funding is then allocated to the Special District Fire Response Fund (the other 20 percent is appropriated to the Department of Forestry and Fire Protection to fund fire suppression staffing). This money will be used to provide grants to qualifying special districts, with grant terms lasting no shorter than 10 years.
For the funding amount allocated to the Special District Fire Response Fund, 50 percent of the amount will be used to fund fire suppression staffing in underfunded special districts that provide fire protection services, were formed after July 1, 1978, and employ full-time or full-time-equivalent station-based personnel who are immediately available to comprise at least 50 percent of an initial full alarm assignment. Twenty-five percent will be used to fund fire suppression staffing in special districts that provide fire protection services, were formed before July 1, 1978, are underfunded due to a disproportionately low share of property tax revenue and an increase in service level demands since July 1, 1978, and employ full-time or full-time-equivalent station-based personnel who are immediately available to comprise at least half of an initial full alarm assignment. The remaining 25 percent will be used to fund fire suppression staffing in underfunded special districts that provide fire protection services and employ full-time or full-time-equivalent station-based personnel who are immediately available to comprise at least 30 percent but less than 50 percent of an initial full alarm assignment.
In establishing whether a district qualifies as “underfunded,” the State Legislature weighs a number of factors in a descending order of priority. At the top of the priority list is the degree to which the special district’s property tax revenue is insufficient to sustain adequate fire suppression, as measured against the population density, size of the service area, and number of taxpayers within the boundaries of the special district. The next highest consideration is whether the special district, upon formation, received a property tax allocation in accordance with Chapter 282 of the Statutes of 1979 (Assembly Bill 8). The last factor in the priority list for consideration is geographic diversity.
SB 450 would establish Cal OES, in coordination with the board of directors of the FIRESCOPE Program, as the administrator of the Special District Fire Response Fund. The two entities would be tasked with developing a standard application form to be used by special districts that provide fire protection services to apply for grants from the Special District Fire Response Fund that includes, but is not limited to, all of the following:
- A description of a special district’s eligibility to receive a grant pursuant to the funding criteria,
- Specification of the number of additional fire suppression staff that would be supported by the grant,
- Identification of the benefits to firefighter health and safety and community response in the special district, if the grant is funded; and
- Identification of opportunities to leverage other funding sources, if the grant is funded
The bill would also charge Cal OES and the directors of FIRESCOPE with establishing an annual timeline for special districts that provide fire protection services to apply for grants from the Special District Fire Response Fund. The text of the measure directs the entities to ensure that underfunded special districts that provide fire protection services are aware of the availability of the Special District Fire Response Fund to expand and increase fire suppression staffing in qualified districts, and are responsible for the establishment of reporting requirements for special districts that are awarded grants from the Special District Fire Response Fund. Cal OES and the FIRESCOPE directors are responsible for the development of metrics for consideration of grant applications consistent with the priority list of considerations and the 10-year grant terms.
The California Special Districts Association recently adopted a “Support” position on Senate Bill 450. CSDA will continue to monitor SB 450 and provide its members who offer fire protection services further updates on this topic as additional information becomes available.
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