RCRC, in coalition with local government partners, supports Assembly Bill 964, authored by Assembly Member Heather Hadwick (R-Alturas). This measure would take an important first step to reform the current process of reimbursement for and administration of state mandates, resulting in some sensible fiscal relief and flexibility necessary for efficient, modern governance by local agencies.
Currently, the process for local agencies to receive reimbursement is long and arduous with a significant backlog of unreimbursed monies owed to local governments. Additionally, after reimbursements are finally issued (even years after the expenditure was originally made), an audit or review by the State Controller’s Office may reduce the reimbursement amount by disallowing previously approved payments. The local government must pay that disallowed amount back to the state, even if the state has outstanding debts owed to that local government.
This measure would authorize the State Controller to allow a local government to offset any reduced reimbursement against unpaid reimbursement claims, rather than allowing the state to claw back money while still in debt to that local government. This mechanism will provide financial relief for cash-strapped local governments, retaining critical funding for under-resourced communities.
RCRC’s letter of support is available here. This measure is scheduled to be heard by the Assembly Local Government Committee on April 23rd. For additional information, contact RCRC Policy Advocate, Sarah Dukett.