$933 Million Request for Mandates
Back in late-December, the League of California Cities (Cal Cities) reached-out to me about the $933 million in mandated-cost debt that has accrued for specific programs to local agencies that are ineligible for the “fund or suspend” provisions of the California State Constitution (Article XIIIB, section 6 (b)(1)). These outstanding claims are identified in the State Controller’s Office’s (SCO) “AB 3000 Report” which published last fall. I made a public records act request to the SCO and received the full-itemized detail of the AB 3000 Report in March which I shared and described to Cal Cities and two other local government associations.
As a result of my assisting Cal Cities, the California Special District Association (CSDA) and the California State Association of Counties (CSAC) in late-April and again in May, all three of these associations requested payment for this debt that includes eligible costs more than 20 years old. Since the State of CA was projecting more than a $40 billion surplus (now estimated close to $100 billion), the hope was the State would want to get this obligation off their books with interest rates rising significantly this year and next. Additionally, the Stayte could also avoid tax rebates as required by the Gann Limit.
The hope was for payment of these claims to be included in either the 2022 State Budget Act or a Budget Trailer Bill. Since those costs were not included in either, my contact at the League of California Cities stated they “are ramping up a communication campaign to remind everyone (Governor and the State Legislature) need to pay their bill.”
Nichols Consulting Can Provide a Detail Report for Your Agency
For those that are interested, I have a detailed listing of all agencies that have outstanding claims under the AB 3000 Report. The total number of agencies includes all 58 counties, more than 450 cities and greater than 600 special districts. If you interested in receiving a copy, please send me an e-mail requesting one and I would be happy to forward you a copy of amount owed to your agency, by program, by year.
As always, please let me know if you have any questions.