Passage of a library bond brings unexpected benefit

By Kara Chalmers

Because of legislation introduced by State Sen. Byron Sher, Saratoga stands to regain up to $400,000 yearly in tax equity allocation funds. Before Saratoga voters repealed the utility-users tax in the November 1996 election, the city received from Santa Clara County funds matching the TEA funds. Sher's legislation would make the city eligible once again for the county funds.

When voters repealed the tax, Saratoga not only lost $729,000 in utility-tax revenue, it lost the portion of TEA funds that Santa Clara County used to match--55 percent of the tax, or $400,000.

While the city has never stopped receiving TEA funds with its base of $550,000 each year--the legislation would allow the city to regain the additional $400,000 it previously lost. The reason is the library bond that was passed in March. The city again has a local tax, similar to the utility-users tax. Sher's bill, if passed would allow the city to collect matching funds on the library bond, up to the amount they collected before 1996.

"Local government needs revenue to deliver public service," Sher said. "I think, in principle, that now that they have reinstated a tax on local services, it ought to trigger the sharing that it did before ... [the bill] restores revenues that will help the city deliver services to its citizens."

Assembly Bill 922, which has been in effect since January 1998, was designed to help cities that had lost TEA funds due to voters repealing local taxes. However, the legislation was amended shortly before the vote was taken to exclude Santa Clara County.

So far, Sher's legislation, SB1883, has been successful. The bill passed the senate by an unanimous vote and also passed the appropriations and local government committees in the assembly. It is expected to go to the assembly floor for a vote in August.

If the bill is passed, it means that the funds will be paid directly to Saratoga and will not go into the county's general fund for countywide projects. Sher said the county took a neutral position on the bill, and has not opposed it.

"Fortunately, the bill has moved quite expeditiously through both houses," he said. "The first effort to give equitable treatment to the county and Saratoga did not work, but it looks like we're going to succeed this time."

In 1997 Saratoga filed a lawsuit against the county because the county reduced the TEA funds a year too early. The two sides settled the dispute in arbitration in September, and Saratoga won. The funds were supposed to be phased out over three years starting in 1998, and the county started phasing them out in 1997. The county gave Saratoga $730,000 to compensate for the year of missed funding.

Winery use permit delayed for study of new traffic data by city and opposition group

DeCinzo

Photo: Student-made tiles need new homes because of Argonaut School's renovation

Family Daze

Saratoga Sampler

It's never too late to begin living an active, healthy life

Sports Briefs

Andrew Bosworth named to All-Star team

Charlie Wedemeyer All-Star Football Game