Developments in State Mandate Repayment
May 24, 2018
Several decisions pending in the proposed 2018-19 state budget, the Commission on State Mandates, and the California Supreme Court could provide funding to repay local agencies for providing state-mandated services. See below for more details on each development.
Post-2004 “Retired” Mandate Debt Repayment
The largest piece of news is the proposal in the Governor’s May Revision (see page 67) to repay local agencies for the costs of providing “expired” mandates. There are 14 mandates that fall into that category, with the majority of debt (over $250 million) related to AB 3632 (Chapter 1747, Statutes of 1984) for severely, emotionally disturbed students. The proposed allocation totals $282.2 million plus interest. Agency allocations are not yet available from the State Controller’s Office, but CSAC is working diligently to ensure all claims are accounted for and that counties are sufficiently reimbursed. As soon as agency-by-agency numbers are provided, CSAC will share those details.
Mandatory Mediation Might be Reimbursable
The Commission on State Mandates is scheduled to act on the City of Oxnard’s test claim on AB 646 (Chapter 680, Statutes of 2011) and AB 1606 (Chapter 314, Statutes of 2012) regarding mandatory mediation and fact finding under the Meyers-Milias-Brown Act (MMBA). See item 5b on the hearing agenda. Commission staff issued a proposed decision recommending that the Commission partially approve the test claim with a reimbursement period beginning July 1, 2015.
Revenue Offset Claim Challenged
The California Supreme Court has granted review in California School Boards Association v. State of California. The case raises the question of whether the State meets its constitutional obligation to provide subventions for mandated programs and services by designating offsetting revenue, but not actually providing the local agency with any additional funding. Both CSAC and the League of California Cities supported the petition for review (see joint letter) and the case will be briefed this summer.
The Local Government Mandated Services Working Group is following these developments very closely. If interested in getting involved and learning more, please contact Tracy Sullivan or Dorothy Johnson.