Hollister officials are cautiously optimistic that last week’s
passage of Proposition 22, which blocks the state from raiding
local funds, will equate to more dollars staying home.
Hollister officials are cautiously optimistic that last week’s passage of Proposition 22, which blocks the state from raiding local funds, will equate to more dollars staying home.
“We’re very happy about its passage,” City Manager Clint Quilter said. “It really allows the Redevelopment Agency to continue doing some of the economic development activities and infrastructure improvements it has done over the last several years.”
In recent years, the state has either borrowed or taken money from local governments to help shore up its budget deficit, with redevelopment agencies the most recent target.
The Hollister RDA in May sent $4.5 million to the state and is set to send another $1 million in May 2011, though Quilter is hopeful that the second payment may not have to be sent.
“We’re waiting for more information, but my understanding is that we won’t have to make that payment,” he said, noting that the state has continued to come up with ways to transfer local funds to the state level as it has struggled to balance its budget.
“I think (the passage of Prop. 22) has gone another step and, hopefully, the state can’t come up with any other ways to take money. If it’s not the general fund it’s been redevelopment. It’s been something every year.”
The League of California Cities estimates that Sacramento has taken $2 billion in property taxes and more than $2 billion in redevelopment funds statewide.
Another measure that was passed this month was Prop. 26, which requires governments to get two-thirds voter approval on some taxes or fees.
Quilter said he doesn’t expect that requirement to affect Hollister because “this does not have to do with any fees that we charge,” including Measure T, the 1 percent sales tax that is set to expire after the 2012-13 fiscal year.
Eva Spiegel, a spokeswoman for the League of California Cities, which opposed the measure, said the organization is “engaged in post-election analysis of the proposition and its potential effects on cities,” but that there isn’t a clear answer yet on what the law will cover.
Pinnacle wire services contributed to this report.
