LOCAL GOVERNMENT FUNDS AND REVENUES. STATE MANDATES. INITIATIVE CONSTITUTIONAL AMENDMENT.

LOCAL GOVERNMENT FUNDS AND REVENUES. STATE MANDATES. INITIATIVE CONSTITUTIONAL AMENDMENT. Requires voter approval for any legislation that provides for any reduction, based on January 1,2003 levels, of local governments\u27 vehicle license fee revenues, sales tax powers and revenues, and proportionate share of local property tax revenues. Permits local government to suspend performance of state mandate if State fails to reimburse local government within 180 days of final determination of state-mandated obligation; except mandates requiring local government to provide/modify: any protection, benefit or employment status to employee/retiree, or any procedural/substantive employment right for employee or employee organization. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This initiative would have the following fiscal effects, the magnitude of which would depend on future actions by the Legislature and state voters: Higher and more stable local government revenues than otherwise would have been the case, potentially several billion dollars annually. Significant changes to state finance, potentially including higher state taxes or lower spending on state programs than otherwise would have been the case. The state fiscal effect would be commensurate with the measure\u27s impact on local governments