LOCAL FUNDS AND REVENUES. INITIATIVE CONSTITUTIONAL AMENDMENT.

LOCAL FUNDS AND REVENUES. INITIATIVE CONSTITUTIONAL AMENDMENT. Specifies local funds and revenues available to cities, counties and special districts for health, safety and other services. Excludes redevelopment agencies, school or community college districts. Establishes base amount; provides annual adjustment based on cost of living and population. Prohibits Legislature and state agencies from reducing specified local funds and revenues available to local government for appropriation for public health, safety or other services. Permits Legislature to suspend prohibition through urgency legislation for one year in ten year period and, with voter approval, for additional two consecutive years. Requires public financial accountability process. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This initiative would have the following major fiscal effects: (1) Significant restrictions on state authority over local government finances; and (2) Higher local resources than otherwise would have been the case - potentially several billions of dollars annually. Commensurate fiscal impact on the state, in the form of reduced spending on non-local government programs and/or higher state taxes