Earlier today, the Assembly Committee on Local Government passed AB 2268 (Reyes - San Bernardino), a bill that will restore Vehicle Licensing Fee (VLF) revenue to cities that have expanded or incorporated additional areas. The bill passed by a vote of 9-0. When signed by Governor Brown, AB 2268 would enable Fontana and San Bernardino to be eligible to receive almost a million dollars annually.
Still reeling from budget deficits after the 2008 recession, a 2011 budget trailer bill passed through the legislature that ultimately reallocated over $200 million dollars annually. Under normal circumstances, this revenue would have gone to cities that had recently expanded or annexed new territory to pay for the added services they were now providing.
“ The 2011 reallocation of money from cities that had annexed new territory put local government and the residents in those communities under tremendous pressure as revenues have not met the community needs,” said Assemblymember Reyes. “The dollars lost from this reallocation takes money away from vital public safety programs, punishing communities. AB 2268 will bring fairness to an unreasonable outcome where local governments are penalized through no fault of their own.”
More than 140 cities that had expanded or annexed areas lost out on much needed revenue to help pay for city services to these new areas. Fontana and San Bernardino were among the cities that lost the most, losing approximately $900,000 annually. Acquanetta Warren, Mayor of Fontana, testified in committee on the affects the lost revenue has had on Fontana.
“SB 89 resulted in a per capita loss to the majority of California cities of $3.50 per resident. By contrast, the per capita loss to the city of Fontana was $7.50 per resident,” said Mayor Warren. “AB 2268 will reinstate those lost revenues and bring $900,000 annually back to benefit the city and police department.”
AB 2268 will next be heard in the Assembly Appropriations Committee.