Consent Calendar Item 4k
STAFF REPORT
City Council Consent Calendar Agenda Item
DATE: February 22, 2022
TO: Honorable Mayor and Council Members
FROM: Siana Emmons, City Clerk
THROUGH: Merritt Perry, City Manager
SUBJECT: Oppose the Taxpayer Protection and Government Accountability Act or AG 21-0042A1, by Adopting Resolution 2022-02
STAFF RECOMMENDATION:
Approve Resolution 2022-02, to oppose AG 21-0042A1
BACKGROUND:
In 2018, the “Tax Fairness, Transparency and Accountability Act” or (AG# 17-0050 Amdt. #1), was being circulated to qualify for the November 2018 ballot. This initiative would have drastically limited local revenue authority to the detriment of California cities. Through the successful work and advocacy of the League of California Cities and its coalition, the measure’s proponents withdrew the initiative from the ballot in June 2018.
On January 4, 2022, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act or AG# 21-0042A1. This measure is far more detrimental to cities than the previous measure filed in 2018, because it would decimate vital local and state services to the benefit of wealthy corporations.
Cal Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly oppose this initiative. The measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources — shifting the burden and making individual taxpayers pay more.
The deceptive scheme creates new loopholes that makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods.
This far-reaching measure puts at risk billions of dollars currently dedicated to critical state and local services. It could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more. It would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, and utilities.
Consent Calendar Item 4k
The measure will encourage frivolous lawsuits, bureaucracy, and red tape that will cost local taxpayers millions — while significantly delaying and stopping investments in infrastructure and vital services.
This misleading measure changes our constitution to make it more difficult for local voters to pass measures needed to fund local services and local infrastructure. It also includes a hidden provision that would retroactively cancel measures that were passed by local voters — effectively undermining the rights of voters to decide for themselves what their communities need.
It would limit voter input by prohibiting local advisory measures, where voters provide direction to politicians on how they want their local tax dollars spent.
RECOMMENDED COUNCIL ACTION:
Approve Resolution 2022-02. Consent Agenda vote.
ATTACHMENTS:
Resolution 2022-02, A Resolution of the City Council of the City of Fortuna opposing Initiative 21-0042A1.
League of California Cities Taxpayer Protection and Government Accountability Act Legal Analysis dated January 21, 2022
Fiscal and Program Effects of Initiative 21-0042A1 on Local Governments