Act aims to keep tax money local

The Costa Mesa City Council on Tuesday will consider supporting a possible ballot measure that could block the state from withholding or borrowing money from local governments.

If enough signatures are gathered for the Local Taxpayers, Public Safety and Transportation Act of 2010, the measure will be placed on the November ballot. Supporters say the initiative would close loopholes that allow the state to keep, borrow or divert funds gathered from local taxes.

“The state has been raiding local revenues, cities and counties, for years to the tune of millions of dollars, balancing their budgets on our back, while we make cuts,” said Councilman Gary Monahan. “Enough is enough. The voters said that a few years ago, and this will fill the loopholes that came out of that.”

In 2004, voters approved Proposition 1A, which blocked the state from diverting local tax dollars. But the measure also allowed the state to borrow money from local governments.

The proposed act would revoke the state’s right to borrow any money, said Tony Cardenas, public affairs regional manager for the Orange County division of the League of California Cities, a group that lobbies for local governments.

“We’re seeking local control over local taxpayers’ dollars,” Cardenas said.

According to a city staff report, if the measure passes, it would amend the California Constitution and prevent the state from withholding local funds dedicated to public safety, borrowing local property taxes or diverting redevelopment funds.

The measure would also block the state from borrowing, taking or redirecting gasoline taxes, highway and public transit funds.

“It’s important to keep pressure on the state and let them know how important funding is to cities at the local level,” Mayor Allan Mansoor said. “And we can no longer afford to have them take any more of our funding, so I’m opposed to them, obviously, taking any more funds,”

Mansoor would not commit to voting for the resolution, saying he first has to listen to the presentation and residents’ concerns before making up his mind.

At least 1.2 million signatures are needed for the measure to be placed on the November ballot. About 500,000 signatures have been collected.