Local Government Budget and Finance POSC 140 Intro

Local Government Budget and Finance POSC 140 Intro to CA Government and Politics Braunwarth

Outline n n n San Diego ($2. 2 billion total budget, $750 million general fund) as an example of: How Cities Spend $ How Cities Get $ Legislative Impacts Creative $ Raising

How Cities Spend Money n n n n n What do you think is #1? Police, Fire, Lifeguard 52% Operations (planning, permits) 16% Park and Recreation 10% Sanitation and Health (trash) 6% Internal Support/Management 6% Library 4. 5% Neighborhood Services (econ dev’t) Transportation (streets, parking, traffic)

Funding Sources (S. D. ) n n n n Property Tax 23% Sales Tax 19% Revenue from $ and property 11% Motor Vehicle License Tax 10% Fees for Services (golf, sewer) 9% Transient Occupancy Tax (TOT) 8% Fund Transfers (from other gov’ts) 6% Fines, Permits 9%

Initiatives and Referenda n n Reflect distrust of elected officials and government Either cut/limit taxes (Prop 13) or Determine tax/spend priorities i. e. Prop A (S. D. ) Transnet – 1/2 % of sales tax must go to transportation n n Why not? Hamstrings officials

Proposition 13 n n n Prop 13 (1979) limited property taxes Required 2/3 margin to raise other taxes Made state/cities more dependant on Sales Taxes Required Fiscalization of Land Use Made budget more dependant on the Economy Led to big cuts in education (#4 - #45) – 20 year study - authors regret passing

Creative Funding for Cities n Create Redevelopment Districts: get low interest loans to pay for improvements which raise the tax base and pays loans – E Village, Convention Center, NTC, etc. n n n Debt Financing/Bonds need voter OK Lease/Sell Property Privatization: EMS, EDCO, Electricity BIDs and MADs (residential) Municipal Marketing Programs – Partnership with vendors (Pepsi) – $1. 5 m + % on 500 mchns, 12 yrs = $20 m