January 3, 2019

The official transition from the Brown administration to the Newsom administration will take place next week. Governor-Elect Newsom will be sworn in on January 7 at the State Capitol with the release of the Governor’s January Budget required no later than Thursday, January 10.

The California Supreme Court heard oral argument last week on a controversial case dealing with pension benefits for government workers. The case, Cal Fire Local 2881 v. California Public Employees’ Retirement System (CalPERS), challenges a provision in the Public Employees’ Pension Reform Act (PEPRA) that eliminated the option for employees to purchase service credits (also known as “airtime”). This issue is highly significant for local agencies since it could potentially affect future pension liabilities and collective bargaining agreements.

The California Department of Tax and Fee Administration (CDTFA) recently issued a new ruling, effective April 1, 2019, that will require out-of-state retailers selling above certain thresholds to collect use taxes, or sales tax based on where a good is used, including locally levied use taxes. Currently, consumers are responsible for paying the use tax on merchandise from out-of-state retailers. Under the new ruling, CDTFA is shifting the responsibility for remitting the use tax from the consumer to the retailer, consistent with the authority granted in the South Dakota v.

Late last week, the State Complete Count Office released its funding plan for the $90.3 million provided in the 2018-19 State Budget for Census outreach. Counties are critical partners in the complete count effort and are trusted as the fiscal agents for nearly one-third (approximately $26 million) of the funds.

Nov. 1, 2018

Counties will receive notice on November 9 about the potential funding from the State in support of outreach activities related to the 2020 U.S. Census (Census). A letter addressed to the County Administrative Officer will include information about the potential award amount, steps for accepting the allocation, timelines, and other contracting parameters.  Counties should be aware they will have 90-days to pass a Board Resolution agreeing to the terms of the funding if they choose to accept the award.

Oct. 18, 2018

The Legislature and California Department of Tax and Fee Administration (CDTFA) are ramping up efforts to collect sales and use tax from out-of-state online retailers, following the U.S. Supreme Court’s decision in Wayfair v. South Dakota. The Legislature recently held an informational hearing examining the state’s authority under the Wayfair decision and CDTFA is hosting a stakeholder meeting (which counties are invited to attend) to collect feedback as they prepare to issue guidance materials.

Oct. 18, 2018

An initiative to scale back Proposition 13 protections for commercial and industrial properties is now eligible for the November 2020 ballot. Specifically, the initiative seeks to assess commercial and industrial properties at fair market value while leaving homeowners’ Proposition 13 protections in place, a concept known as “split roll.”

Plans are currently underway to revamp the online system that local agencies use to meet their mandated annual debt reporting requirements. The California Debt and Advisory Commission (CDIAC) issued a notice outlining the planned system changes and report modifications. The notice also includes an estimated timeline of project completion and information on various training opportunities.

Sept. 27, 2018

The Government Accounting Standards Board (GASB) recently issued their quarterly newsletter with information highly pertinent to counties and other government agencies. The issue includes a Q&A with the GASB Chairman on the upcoming financial reporting model proposal, a video on the User Guide Series, and more.

Sept. 20, 2018

After a slight dip in July, state revenues are back on track, beating budget estimates by $1.047 billion for the month of August. Additionally, California enjoys impressive job growth, accounting for almost a third of the nation’s job growth in July.  These factors, in addition to others described below, show that California’s economy remains on strong footing.  

CalPERS is currently holding an election for the public agency seat on their Board of Administration. The public agency board member represents all active county, city, and special district employees on critical issues that directly impact the health of the CalPERS system. All public agency employees enrolled in CalPERS are eligible to vote and should have received the necessary election materials in the mail by now, in a bright blue envelope.

Sept. 6, 2018

The Legislature concluded its business last week, but CSAC advocacy continues through the end of September as we shift our focus to the Governor’s Office. There are several bills still pending in the Government Finance and Administration (GFA) policy area that CSAC is urging the governor to sign or veto. The full list is provided below.

The Secretary of State’s Office recently released a memo detailing the funds available to counties through the 2018-19 State Budget Act and the federal Help America Vote Act (HAVA). These much-needed funds will assist counties modernize their voting systems, improve security, and enhance election technology.

The 2020 Census is of critical importance for determining federal funding allocations as well as each state’s number of congressional representatives.  In 2016, the State received $76 billion in federal dollars for programs like Medi-Cal, much of which flows to counties.

July 12, 2018

CalPERS needs some feedback from county stakeholders as the healthcare region map is being redrawn. These regional boundaries are critical because they dictate health insurance premiums from one contracting agency to the next.

July 5, 2018

After a flurry of second house policy committee hearings, the Government Finance and Administration (GF&A) policy unit is pleased to report successful negotiations on a number of key bills impacting county personnel management and liability.

SB 1343 (Mitchell) – Sexual Harassment Prevention Training

Compromise Reached on JPA Pension Liability Bill

June 7, 2018

The Government Finance and Administration (GFA) policy unit reports the following “hot” bills which remain alive in the 2018 calendar year and are headed to the second house. As CSAC works to stop these measures, counties are encouraged to get involved and engage their legislators.

AB 1912 (Rodriguez) – Expanded Pension Liability for JPA Members

• Scheduled for Hearing Monday, June 11 (Senate PERS Committee) •

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