Budget Letter Outlines County Concerns
April 23, 2020
Responding to impact of both the coronavirus itself and the government actions taken to lessen the resulting economic effects, CSAC today sent the Governor a letter outlining a variety of urgent county fiscal stability and budget needs, including backfilling deferred sales taxes, issuing an executive order on property taxes, and assisting any counties with critical cash flow needs.
The letter, which follows a discussion on the topic at last week’s CSAC’s Executive Committee meeting, points out that counties are the level of government most directly helping Californians affected by the coronavirus. At the same time, counties face eroding revenues due to both the direct impacts of the economic downturn and actions taken by the state to assist California residents and businesses.
CSAC is urging the Governor and Legislature to:
- Backfill revenues delayed due to the sales tax layaway program, especially for 1991 and 2011 realignment.
- Allow counties to opt out of the Teeter Plan and specify that a property owner’s COVID-related economic hardship can be factored into a decision to cancel tax delinquencies.
- Provide cash flow assistance, in part by immediately distributing the local share of remaining CARES Act funds to counties with populations under 500,000.
- Partner with counties to provide stability for programs funded by 1991 realignment, 2011 realignment, and Proposition 172.
The list of needs is not exhaustive, but they represent the most critical and urgent needs at this moment. CSAC urges county supervisors and other officials to emphasize these points to their legislative delegations and the Governor’s office.