Lawmakers representing Wildomar say the city stands to lose $1.8 million in revenues if a senate bill passed this week as part of the state budget package is not amended.
The legislators sent a letter today to Governor Jerry Brown asking him to return Senate Bill 89 to lawmakers for amendments, otherwise there will be a “devastating effect on four new cities within our region and may well result in bankruptcy or un-incorporation of one or more of them,” the letter states.
The cities of Wildomar, Eastvale, Jurupa Valley and Menifee have all incorporated within the past few years, and their fiscal stability was based on revenues from the vehicle license fee as appropriated in Section 11005(c) of the Revenue and Taxation Code, the letter states.
“SB 89 removes this funding source, a point that was not referenced in the Assembly Floor Analysis,” the letter states.
Click here to read full text of SB 89.
Under SB 89, city general fund revenue from the vehicle license fee formula would be redirected into a Local Law Enforcement Services Account that was created by the public safety realignment funding bill SB 93/AB 118.
The letter states that Wildomar stands to lose $1.8 million in revenues if SB 89 is not amended.
Potential revenue losses for three other new cities are even higher, with Eastvale standing to lose $3.1 million, Jurupa losing $6.2 million, and Menifee dropping $3.9 million, according to the letter.
“This revenue accounts for 20 percent to 25 percent of the entire budget for these new cities. These cities will be seriously impacted by this realignment and will have way no ability to recover from this devastating loss of revenue. The four cities in Western Riverside County (and unknown others statewide) may be forced into bankruptcy or un-incorporation as a direct result of this bill,” the letter states.
Assemblyman Kevin Jeffries, 66th District, Assemblyman Paul Cook, 65th District, Assemblyman Jeff Miller, 71st District, Assemblyman Brian Nestande, 64th District, Senator Bill Emmerson, 37th District, and Senator Bob Dutton, 31st District, all signed the letter.
Today’s letter states that most legislators were unaware of the provision due to “last minute drafting of the language” and the cities themselves were not made aware of this provision until it was too late to request amendments.
“We recognize that SB 89 is a significant part of the budget agreement that was passed Tuesday night. We respectfully ask that you return this bill for amendments to protect newly incorporated cities that may inadvertently be placed in jeopardy,” the letter states.