LEGISLATION TO CAP ERAF GROWTH, 
SHIFT OF PROPERTY TAXES BACK TO LOCAL GOVERNMENT

AB 3 (ASHBURN) AND AB 100 (SIMITIAN)

 

Recommendation:

That the City Council take an action to support these two bills and direct staff to track the bills through the legislative session.

 

Background:

These two bills would cap the growth in ERAF, allowing the local governments to receive the additional property tax revenue rather than going to the state and placed in the ERAF fund. On a statewide basis, the total funds that this change would generate are estimated at $330 million. As you will recall, this has been one of the first steps that local governments wanted to restore property tax revenue taken by the state in the early 1990’s. The estimated amount is greater than the entire amount allocated by the legislature in the 2000/2001 budget to local government.

The energy crisis may make a number of bills moot this year, but it is important to let the legislature know that we are interested in seeing this passed this year.

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