REVENUE SOURCES FOR LOCAL GOVERNMENTS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

REVENUE SOURCES FOR LOCAL GOVERNMENTS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Replaces Vehicle License Fee as source of local government revenues with increased share of property taxes as primary source of local government revenues. Establishes School Assistance Fund for Education in each county, funded by VLF allocations and additional retail sales and use taxes. Prohibits Legislature from altering allocations or delaying revenues from taxes imposed by local governments. Requires state reimbursement for mandated programs or services by end of fiscal year. Permits local governments to either continue performance or suspend state mandates until reimbursed if Legislature fails to make timely appropriation. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Annual shift of about $7 billion in VLFs (vehicle license fees) and sales taxes from cities and counties to K-14 school districts; offset by a roughly comparable shift of property taxes from K-14 school districts to cities and counties. Higher and more stable local government revenues than otherwise would have been the case, potentially several billion dollars annually. Conversely, 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