Change would make it easier for newly incorporated or annexed areas to get a share of funds
Thursday, August 14, 2008 - EGP News Service
A bill to give communities throughout the state the financial ability to form new cities or annex land, passed the senate last week 32-1, and is now awaiting the governor’s signature.
SB 301 by Senate Majority Leader Gloria Romero (D-East Los Angeles) would ease restrictions on how the Vehicle License Fees (VLFs) are distributed, and, if signed by the governor, reestablish eligibility lost in 2004 when state legislators changed the way the state allocated revenue from the Vehicle License Fee (VLF) to local governments.
The changes, reached as part of the 2004 budget agreement, eliminated eligibility for any community seeking to incorporate or annex new territory.
The Legislature did approve some relief in 2006 when it passed a bill “giving cities that incorporated between Aug. 5, 2004, and July 1, 2009, additional VLF money to help them start off on solid financial footing,” according to a statement from Romero’s office. “The measure, AB 1602 by Assemblyman John Laird (D-Santa Cruz), also gave cities access to those funds if they annexed land by July 1, 2009.”
But the 2009 sunset provision was seen as problematic for several communities seeking cityhood, but unable to complete the process before the July 2009 date: Among them, supporters of incorporation, cityhood, for East Los Angeles.
Romero, who has actively endorsed the campaign to make East Los Angeles its own city, says approval of this measure will help newly incorporated cities start off on more solid financial footing.
“Communities seek incorporation or annexation to improve services for their neighborhoods and gain greater local control over their future,” said Romero. “Several groups have already invested significant time and money in the incorporation and annexation process, but they need Vehicle License Fee funding so their ventures can succeed. This measure keeps their options open.”
SB 301 would delete the requirement that a city complete incorporation or annexation by July 1, 2009, in order to receive VLF revenues. Romero says it will also extend the method for determining how much funding those cities would get to help with their incorporation or annexation.
Supporters of the East Los Angeles Cityhood movement said they are sending letters to the governor asking him to sign Romero’s bill into law.
“The East Los Angeles Residents Association is writing a letter to the Governor asking him to sign this bill into law. We’re asking supporters of Cityhood to add their name to the letter,” stated the group’s vice president Diana Tarango on the East Los Angeles Cityhood campaign Web site.
“As I left the State Capitol earlier this year after being recognized as Woman of Year from the 24th Senate District, I was mindful that SB 301 would benefit East Los Angeles and other unincorporated communities across California. Each additional signature on this letter will send the message to Governor Schwarzenegger asking that he needs to leave the door open for future cities and a community that simply wants a local government,” she states.
