Mandate Reimbursement Numbers Now Available
State Controller: First Payments Due to Counties in Late June
There’s good news for California Counties. The State Controller says the first installments of pre-2004 mandate reimbursements will be made to counties in about a month. In all, $765 million will be disbursed to local governments–most of it going to counties. The money is repayment for actual costs each county incurred complying with state requirements. The county-by-county allocations are now available here.
Payments will be distributed to local agencies in two installments. First, the State Controller’s Office will issue warrants for the payable balance, or actual costs incurred, in late June. Then, the interest accrued on the pre-2004 mandate debt will be repaid in early August.
Counties should note that the estimated interest payments may change because the final calculations will not be made by the State Controller’s Office until the first checks are processed on the payable balance.
The January Budget proposed repaying $533 million to local governments.The pre-2004 mandate repayment “trigger mechanism” was pulled when state revenues exceeded the 2014 Budget Act’s revenue estimates at the time of 2015 May Revise, issued last week. This brings an additional $232 million to counties, cities and special districts, fulfilling the state’s obligation for the pre-2004 mandates cost in its entirety. The total repayment adds up to $765 million for all agencies. Counties will receive 77% of this total. Last fall, the state issued $100 million in pre-2004 mandate debt payments.
The Governor’s May Revise Summary includes a brief discussion on the mandate reimbursements, stating, “It remains the Administration’s expectation that local governments use these funds for core services such as public safety, particularly to improve the implementation of 2011 Realignment and address mental health issues of local offenders.”
Counties should note that it is unconstitutional to require the mandate reimbursement monies be designated in any particular manner, pursuant to Article XIII B, Section 6 of the State’s Constitution, as these payments are for services already rendered.
CSAC led efforts last year in support of the state paying down the wall of debt through providing the pre-2004 mandate reimbursements. CSAC appreciates Governor Brown’s commitment fully repay this obligation to counties.