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Local Government Budget and Finance. POSC 140 Intro to CA Government and Politics Braunwarth. Outline. 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. What do you think is #1?
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Local Government Budget and Finance POSC 140 Intro to CA Government and Politics Braunwarth
Outline • 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
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) How Cities Spend Money
Funding Sources (S.D.) • 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 • 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 • Why not? • Hamstrings officials
Proposition 13 • 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 • 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. • 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