Regional Planners Untangle State and Local Revenues

Sandag's (San Diego Association of Governments) proposal to fight against what they call the 'fiscalization of land use' could become statewide policy in California. "Sandag strategists...believe that a per capita distribution of the funds will encourage local governments to avoid making land-use decisions based on revenue calculations." Local governments would forego volatile state funding sources, such as the Vehicle License fee, gas tax revenues and homeowner exemption payments. To compensate, the state would give up a share of its state and property taxes, which would flow into a new regionwide tax base that would distribute those funds to cities on a per capita basis. The proposal seeks, among other things, to encourage housing construction, which currently provides "few fiscal benefits to cash-starved local governments."

Thanks to Connie Chung