2011-'12 State Budget / Fees

Gov. Jerry Brown has proposed a state spending plan for 2011-’12 that calls for $12.5 billion in spending cuts, a major realignment of state and local responsibilities and a five-year extension of temporary taxes.

The governor’s release of his January budget is just the first step in the months-long budget negotiations. Assembly and Senate budget subcommittees will likely revise the proposal with input from the Legislative Analyst’s Office and the Department of Finance. The governor typically reassesses and releases an updated version in May.

ACWA continues to analyze the budget proposal and will keep members apprised as developments unfold. 

Local Government Realignment

The local government realignment plan calls for eliminating the current funding mechanism that provides local property tax dollars to redevelopment agencies. The move would free up billions in property tax revenues that would be redistributed to cities, counties and schools to fund public safety, education and other services. A share of the funding would also go to non-enterprise special districts. Enterprise special districts would not receive any of the redirected funding.

The governor's proposed budget does not attempt to reallocate any existing property tax revenue received by enterprise special districts such as water and wastewater districts. Current property tax allocations would remain unchanged but enterprise special districts would not receive a piece of the redistributed former redevelopment agency property tax funds.

State Board Fees 

As expected, the proposed budget calls for $12.8 million in fee increases for waste discharge permits and water rights activities. The fee increase would offset the backing out of general fund spending for those areas within the State Water Resources Control Board.

ACWA and its member agencies successfully fought off similar fee increases originally proposed by Gov. Schwarzenegger last year.

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