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League of California Cities files "lockbox" initiative

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October 21, 2009

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SACRAMENTO, California: In 2009, the California State Legislature borrowed $1.9 billion in local property tax funds from local budgets.

Seeking to prevent this type of borrowing in the future, an association of local government groups, including the League of California Cities, has filed language for a potential November 2010 initiative that would prohibit it in the future.[1]

The initiative would prohibit the state from taking local redevelopment funds, gasoline taxes and highway funds.

Chris McKenzie, executive director of the League of California Cities, says of the current system that it is "unsustainable, and we want to make sure that local services are not sacrificed because of the inability of state leaders to manage the state budget." McKenzie's organization, which is historically active in ballot proposition campaigns, has used ballot initiatives in the past to allow local governments to seize property from individual land-owners.

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