FYI... > -----Original Message----- > From: Michael Garvey > Sent: Wednesday, January 19, 2000 4:54 PM > To: '[EMAIL PROTECTED]' > Cc: Brian Moura > Subject: State Revenue Shift Ideas > > I have read your comments on O'Connell's per capita sales tax distribution > idea and want to offer you a caution. After 15 years of dealing with the > state on fiscal matters, as a volunteer advocate for the League, I have > seen a certain pattern. This proposal brings negative memories to mind. > If we allow the state to make any change to the distribution of sales tax, > something they cannot do at this point, we allow them to tamper with the > formula whenever they wish in the future. In the past they have not > hesitated to shift revenue from cities to counties, and then to cut aid to > counties thereby funding state-mandated county services with city money. > The shift in Wilson/Brown's VLF increase to give the entire increase to > counties comes to mind. > > I see no reason this would not occur with city sales tax revenue, once the > next downturn comes and the state finds itself politically unable to make > hard decisions. > > Also, the state has a pattern of adding conditions to revenue once it > flows through them to local government. Housing advocates might want > sales tax revenue flow to be threatened for those cities having affordable > housing totals that seem inadequate to them. Public employee unions might > feel that some funds should be diverted from agencies having what they > would describe as unfavorable labor practices. We might be obliged to > fund "extra" programs, such as art, music and athletics, at our schools if > state aid seems tight. In today's Sacramento there is no end to such a > list. I am sure you grasp my point. > > The bottom line is that no one in local government should show any support > for any proposal from the state until we see all of the details and unless > the revenue to cities is constitutionally protected. I fear you will find > that the windfall you see in this idea will prove to be a hologram and > when you turn it you will see the money going on a one-way trip to the > juncture of the American and Sacramento rivers. > > Be patient and covet not thy neighbors revenue. This dance has a long way > to go. > -- Michael Garvey, City Manager, San Carlos
