AB 213 a bill by Assemblymember Eloise Gómez Reyes (D- San Bernardino) to restore revenue that was taken from certain cities in 2011, including the cities of San Bernardino and Fontana passed out of Assembly Local Government Committee.
In the wake of the 2008 recession, the California state budget faced a significant deficit as massive declines in revenue occurred due to the acute economic downturn. As a result, a 2011 budget trailer bill passed through the Legislature that ultimately reallocated over $200 million dollars annually from several cities in California. 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 loss of this critical funding in 2011 for cities that annexed, expanded or incorporated new areas meant that they would not provide services to these new areas,” said Assemblymember Reyes. “Cities that are put into this position have been forced to scale back on local investments, and services. AB 213 will restore essential funding to many cities in California, including Fontana and San Bernardino.”
AB 213 is consistent with previous legislative efforts to address this issue. In 2017, the Legislature approved SB 130(Budget) which addressed only four recently incorporated cities that were harmed by the budget trailer bill of 2011. Yet, there are more than 140 cities that had expanded or annexed areas and lost out on much needed revenue to help pay for city services to these new areas.
Of all the cities who lost this funding stream, Fontana and San Bernardino were among the cities that lost the most, collectively losing just under $900,000 annually. AB 213 when signed by the Governor will restore the almost $1,000,000 to communities in the 47th Assembly District.