Some Special Districts Will Receive Unpaid Mandate Reimbursements

Following the passage of AB 74 as part of the California State Budget, certain districts will be receiving reimbursement checks for mandates going back almost 20 years. The 2019-20 State Budget Act contains $15.1 million of funding for four (4) different “Expired and Repealed Mandates” for costs dating back as far as 2001-02. Of the four funded-programs, two of them involve reimbursable costs for special districts. Those two programs are:

• Fire Safety Inspections of Care Facilities (Ch. 993, Stats. 1989) (01-TC-16 and 13-MR-01)

• Local Recreational Areas: Background Screenings (Ch. 777, Stats. 2001) (01-TC-11 and 12-MR-02)

The 11 special districts who filed claims for these programs will receive a combined total of more than $220,000. This amount does not include accrued interest which has also been funded and will be calculated separately by the State Controller’s Office.

— Andy Nichols contributed to this article on the CSDA blog (must be logged in to view)

State Mandates for Special Districts in FY 2018-19: New Reimbursable Program & Payments for Older Claims

There are two recent developments in the area of state-mandated cost for special districts: a new reimbursable program, “Local Agency Employee Organizations: Impasse Procedures II,” and the recently passed State Budget that includes payment to settle unpaid programs.

Reimbursable Costs for Fact Finding

On Friday, May 25, Test Claim filed by the City of Oxnard titled, “Local Agency Employee Organizations: Impasse Procedures II,” was unanimously approved by the Commission on State Mandates. As a result, special districts incurring costs for fact-finding (AB 646 and AB 1606) are eligible to be reimbursed. The costs associated with this activity are recoverable dating back as far as July 1, 2015 and are ongoing.

Older Claims to be Paid with the State Budget Act

The Governor’s May Revision proposed a $282 million payment to settle fourteen programs that were 8-14 years old. Although the vast majority of this money went to counties, two of the programs involved fire personnel/activities, a third program affected parks & recreation, and a fourth program reimbursed LAFCO related costs. As a result of their due-diligence to file for their State Constitutional reimbursement, there were a total of fifteen special districts that are scheduled to receive a total of more than $336,000, plus another $25,000 – $30,000 in interest payments. These payments are scheduled to be completed by November 1, 2018. Here is a summary of what those fifteen districts received by program, by year.

— Andy Nichols contributed to this article on the CSDA blog (must be logged in to view)

State Mandates: Operational and Structural Changes Have Yielded Limited Improvements in Expediting Processes and in Controlling Costs and Liabilities (Bureau of State Audits)

“This report concludes that while the Commission on State Mandates (Commission) has made progress in reducing its backlog of test claims for state mandates, the continuing backlog is large and includes many items from 2003 or earlier. This situation, combined with the long time that elapses before the Commission makes determinations, means that substantial costs will continue to build before the Legislature has the information it needs to take any necessary action. In addition, cost estimates at the time the Legislature considers a potential mandate are inherently difficult to develop. This situation underscores the need for the Commission to more quickly complete the test claim process and develop a statewide cost estimate, which is the first accurate measure of what a mandate will actually cost the State.”

View the 2009 California State Auditor’s report

Payment of Previously Filed Open Meetings Act/Brown Act Reform Claims

Since the restoration of the SB 90 reimbursement program (September 2009), special districts have had an opportunity to file six (6) fiscal years worth of reimbursement claims. With the suspension of the Brown Act, the question has been asked, “Does the State still owe our district for the claims we have filed?”

— Andy Nichols contributed to this article which was reprinted for Meyers|Nave

Brown Act Reimbursements for Special Districts

The recently restored Senate Bill 90/ State Mandated Cost Program, “Brown Act Reform” will provide every special district in California an opportunity to receive reimbursement from the state. This reimbursement is for the time and costs associated with preparing a regular meeting agenda in accordance with the Ralph M. Brown Act (a.k.a. the Open Meetings Act).

Read the article in the 2009 CSDA publication Money Matters