Think Local

June 17, 2009

Proposition 7


Local governments primary revenue source comes from property taxes, sales tax, special taxes and vehicle licensing fees.  Cities and counties use these revenues to build the general fund.  From there cities are able to fund programs such as Public Safety, Capital Improvement Projects and overall service to its citizen’s and community.  However, there is no legislation that protects local government revenues from staying in the local government.  Currently the state has the ability to use local government money else where or other programs for the state.  Currently the state is having budget issues and is in a deficit.  The state can block these local government revenues causing the cities and counties to rely on other sources of revenue when these are their primary source.  The state continues to live outside their means by not staying fiscally responsible.  The state continues to use use money from other local governments to fund their programs and neceseties not staying fiscally accountable.  Seizing money from local governments is not the answer to funding programs where no funding is available.


  • Protects local government funding from being taken away from the state.
  • Local sales tax revenue remains with local governments and must be spent for local purposes.
  • State cannot declare fiscal emergency and seize local government revenue.
  • Local governments can offer the state a loan.  Loan amount cannot exceed $5 million and must be repaid within 3 years at a 3% interest rate.
  • If loan amount is not paid within 3 years interest rate increases to 7%.
  • State must fund their own operations and live within their means.


Immediate effects for this proposition will be at the local government level.  Cities and counties can continue to use their revenues to fund their local programs such as Public Safety, libraries, parks and other services to their communities without the fear of this money being seized by the state.  Local governments that are not fiscally sound and are facing budget deficits and cuts do not have to worry about state seizing their funds.  Local governments that are more fiscally sound can lend up to $5 million to state and receive that money back with interest.   This proposition protects local governments and forces the state to be fiscally accountable and live within their means.

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June 17, 2009

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