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

LOCAL FUNDS AND REVENUES. STATE MANDATES. INITIATIVE CONSTITUTIONAL AMENDMENT. Requires two-thirds vote of Legislature and voter approval 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 Legislature to create tax exemptions and reduce vehicle license fee revenues without voter approval only if legislation reimburses local government for lost revenues. Provides that local government may, with limited exceptions, suspend performance of state mandate if State fails to reimburse local government within 180 days of final determination of state-mandated obligation. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Over time, the initiative would have the following major fiscal effects: Higher and more stable local government revenues than otherwise would have been the case, possibly in the range of several billion dollars annually. Significant changes to state finance, potentially including higher state taxes than otherwise would have been the case--or lower spending on state programs. The magnitude of the state fiscal effect would be commensurate with the measure\u27s impact on local government