BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2624 (Smyth) - Sustainable Communities
Amended: As introduced Policy Vote: NR&W 8-1
Urgency: No Mandate: No
Hearing Date: June 25, 2012 Consultant:
Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2624 would make local agency formation
commissions (LAFCOs) eligible for financial assistance from
Proposition 84 for the development or implementation of a
regional plan that supports "sustainable communities and land
use."
Fiscal Impact: Ongoing cost pressures in the tens to hundreds of
thousands to Proposition 84 (General Fund) beginning in 2013-14.
Background: LAFCOs are required under current law to complete a
municipal service review (MSR) prior to a sphere of influence
update at least every five years. The MSR assess the ability of
local government agencies to effectively and efficiently provide
services to residents and users and provides the LAFCO with
information in updating the sphere of influence for each local
agency. Factors including growth and population projects,
capacity of public facilities, and infrastructure needs related
to public services such as police, fire, and water may be used
in the MSR.
Proposition 84 included $90 million for planning grants and
planning incentives that encourage the development of regional
and local use plans that are designed to "promote water
conservation, reduce automobile use and fuel consumption,
encourage greater infill and compact development, protect
natural resources and agricultural lands, and revitalize urban
and community centers." The Strategic Growth Council (SGC), a
multi-cabinet level agency in part to implement grants, was
created by SB 732 (Steinberg) Chapter 729/2008 in part to
implement these grants. Eligible entities for these planning
grants was set by SB 732 to include council of governments,
metropolitan planning organizations, regional transportation
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planning agencies, or joint powers authorities.
Proposed Law: This bill would add LAFCOs to the list of entities
eligible to receive financial assistance from Proposition 84
monies for the development or implementation of a regional plan
or planning instrument consistent with a regional plan that
"improves air and water quality, improves natural resource
protection, increases the availability of affordable housing,
improves transportation, meets the goals of the California
Global Warming Solutions Act, and encourages sustainable land
use"
Staff Comments: The author's intent of this bill is to allow
LAFCOs to be eligible for grant dollars for completion of more
extensive MSRs in collaboration with metropolitan planning
organizations. The author argues that the preparation of more
extensive MSRs would provide more data to complete regional
transportation plans or sustainable communities strategies,
plans which are currently eligible for Proposition 84 grants.
Staff notes that it is unclear how LAFCOs could receive funds
for MSRs in a manner that is consistent with the terms of
Proposition 84 and the terms of this bill. Under the bill's
current language, eligible entities, which would be expanded to
LAFCOs, could receive grants to "adopt or implement a regional
plan or other planning instrument consistent with a regional
plan" that meets certain conditions. MSRs are not regional
plans. A MSR also cannot be a planning instrument consistent
with a regional plan that meets specified conditions, unless the
regional plan had already been completed, defeating the need for
a more extensive MSR.
To date, the SGC has awarded two rounds of grant awards for
planning documents with one round remaining before the
Proposition 84 funds are exhausted. There have not been other
resources, including another bond, with funds for this purpose.
In the past grant cycles, applications for funding outpace
available funds by at least 3:1 and perhaps 4:1 according to the
SGC. Adding another eligible use for these grant dollars adds
significant cost pressures to an already oversubscribed funding
source. Assuming that MSRs cost LAFCOs somewhere in the range of
the thousands to tens of thousands of dollars depending on the
size of the LAFCO, staff estimates cost pressures to Proposition
84 in the tens to hundreds of thousands of dollars.
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