The City of Santa Clarita is calling a bill signed by Governor Jerry Brown “an illegal taking of funds.”
The city is expected to suffer a nearly $1 million dollar shortfall because SB 89, signed July 1, included a diversion of “vehicle in lieu” funds.
“This ill-conceived measure was rushed through the Legislature without public review and will result in the loss of vital city general fund monies, averaging $3.50 per capita, which will be felt by every city in our state,” stated a League of California Cities press release.
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“The biggest thing is that it’s probably illegal,” said City Communications Manager Gail Ortiz. “It violates the idea of not balancing the budget on the back of cities.”
Ortiz said the city will be mounting a legal challenge through the League of California Cities because Proposition 22 was passed by the citizens to keep the state’s hands off of city money.
Although the bill was signed July 1, the fiscal impact won’t be felt by the city for a few months.
A financial spreadsheet produced by the California League of Cities can be viewed here.