DATE:
March 7, 2023
TO:
Mayor and Council Members
FROM:
Nils Bentsen, City Manager
BY:
Rachel Molina, Assistant City Manager
Tammy Pelayes, Assistant to the City Manager
Lesa Byars, Management Analyst
SUBJECT:
Resolution Opposing the Taxpayer Protection and Government Accountability Act (Initiative 21-0042A1)
RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2023-14, opposing the voter Initiative No. 21-004A1 (Taxpayer Protection and Government Accountability Act).
BACKGROUND
In 2018, the "Tax Fairness, Transparency and Accountability Act" was being circulated to qualify for the November 2018 ballot. If passed, this initiative would have drastically limited local revenue authority. Through the successful work and advocacy of municipalities and the League of California Cities ("Cal Cities"), the measure's proponents withdrew the initiative from the 2018 ballot.
On January 4, 2022, the California Business Roundtable filed Initiative No. 21-0042A1, known as the "Taxpayer Protection and Government Accountability Act." This current 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 large corporations.
On February 1, 2023, the “Taxpayer Protection and Government Accountability Act,” or AG# 21-0042A1, qualified for the November 2024 ballot. This anti-local control measure will decimate vital local and state services to the benefit of wealthy corporation. The measure is sponsored by the California Business Roundtable (CBRT), the lobbying arm of the largest and wealthiest corporations in California. The initiative is purported to be a “taxpayer protection act”, but in reality it is an aggressive action against local-control, which harms local residents, business owners, and taxpayers as a whole..
Cal Cities, along with a broad coalition of local governments, special districts, public safety, education, labor, and infrastructure advocates, strongly oppose this initiative.
ISSUES/ANALYSIS
The initiative seeks to severely limit the ability of both state and local governments to enact, modify or expand taxes, assessments, fees, and other property-related charges that will have severely restrict the ability of cities to deliver essential services and infrastructure needs. Initiative 21-0042A1 proposes adopting new and more stringent rules for assessments, fees, taxes and other property-related fees. It goes so far as to restrict the ability of local governments to issue fines and penalties to entities that violate local water quality, public health, public safety, and other related ordinances.
Alarmingly, the initiative includes provisions that would retroactively void all state and local taxes or fees adopted after January 1, 2022, if they do not align with the provisions of this initiative. Fundamentally, it would allow California voters to invalidate the prior actions of local voters and elected bodies.
If passed, Initiative 21-0042A1 has the potential to jeopardize vital local services by risking billions of dollars currently dedicated to critical local services and potentially forcing cuts to public services. For many jurisdictions, that means cuts to fire and emergency response, parks, libraries, affordable housing, and more. It also has the potential to reduce funding for critical infrastructure like streets, roads, public transportation, drinking water, new schools, sanitation, and utilities. The detrimental consequences of this Initiative cannot be overstated.
Staff is recommending the City Council adopt a resolution opposing the Taxpayer Protection and Government Accountability Act (Attachment 1), to demonstrate how harmful this measure would be to the community and the State of California.
FISCAL IMPACT
None
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENTS:
Resolution No. 2023-14
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
Resolution Opposing 21-0042A1
March 7, 2023