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Hundreds of Districts Report Billions of Potential Impacts from Initiative 1935 “Taxpayer Deception Act”

By Vanessa Gonzales posted 21 days ago

  

In a recent survey concluding March 15, 2024, CSDA received responses from 509 of the state’s 2,000 special districts on the potential impacts of Initiative 1935, dubbed the “Taxpayer Deception Act” by its opponents. The initiative is eligible for the November 2024 statewide ballot and seeks to revise the Constitution in a manner that would retroactively invalidate billions of dollars in funding for essential services approved by voters and locally-elected boards over the past three years.

Data from the one-quarter of California’s special districts that responded to CSDA’s survey indicates communities could retroactively lose close to $2 billion in funding for special district services, and that 38 financing obligations could be adversely impacted. Overall, Initiative 1935 could disrupt essential services provided by special districts in at least 293 communities across California.

If the data were to be extrapolated to include those special districts that did not respond to the survey, the impacts could be magnified approximately four-fold.

CSDA, CalCities, the California State Association of Counties, over 200 cities and over 120 special districts have already officially opposed Initiative 1935. To download a sample oppose resolution and learn more, visit csda.net/VoterLimitations. Additionally, all special districts are encouraged to register for an educational webinar later this month.

Webinar: Initiative 1935 Could Invalidate Your Revenue

Monday, April 22, 2024

10:00 - 11:00 a.m.

Learn more about the initiative and get an overview about what public officials can and cannot do when it comes to a statewide ballot measure.

Free CSDA Member
$110 Non-member

Full Summary of CSDA Survey Results

  • Unique special district responses: 509
  • Overall number of communities impacted that are served by special districts: 293
    • Total approximate amount of funding in jeopardy of being invalidated retroactively: $2 billion
    • Total potentially impacted financing obligations: 38
    • Overall, most impacted types of services:
      • Emergency services
      • Fire protection and wildfire mitigation
      • Drinking water, irrigation, and flood protection
      • Sanitation, including sewer, water recycling, and solid waste
      • Parks, recreation, and open space

  • Special districts with local services revenue in jeopardy of being invalidated retroactively through costly litigation (fees, rates, assessments, or other charges): 284
    • Approximate amount of funding in jeopardy: $1.8 billion
    • Financing obligations potentially impacted: 36
    • Most impacted types of services:
      • Drinking water, sewer, irrigation/agricultural water, fire protection, cemetery, parks and recreation, trash/solid waste, and emergency medical services

  • Citizen-qualified local ballot measures funding special district services passed in last three years that would be invalidated (passed by majority vote or passed with advisory measure): 9
    • Approximate amount invalidated: $67,800,000
    • Financing obligations potentially impacted: 1
    • Types of services impacted:
      • Fire protection, wildfire mitigation, emergency medical services, drinking water, road maintenance, snow removal, maintenance of public space and amenities, mosquito abatement and vector control, parks and recreation, and open space

  • Super-majority approved local ballot measures funding special district services passed in last three years that would be invalidated (no sunset date): 6
    • Approximate amount invalidated: $1,300,000
    • Financing obligations potentially impacted: 1
    • Types of services impacted:
      • Fire protection, emergency services, irrigation/agricultural water, streetlighting, curbs and gutters, stormwater, and landscaping including sidewalks.

  • Citizen-qualified local ballot measures funding special district services anticipated for 2024 ballot that would be invalidated (majority vote measures): 6
    • Approximate amount invalidated: $68,500,000
    • Types of services impacted:
      • Fire protection, wildfire mitigation, emergency medical services, drinking water, flood protection, seawater intrusion, stormwater, climate resilience and emergency preparedness, levee and reclamation, resource conservation, parks and recreation, and open space


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#Water
#FireProtection
#Revenue
#RecycledWaterandSewer
#ParksandOpenSpace
#FloodControlandReclamation

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