Negative bailout for Stanislaus County set to end
The text message from Stanislaus County Supervisor Vito Chiesa to a staff member Friday night summed it up: “Boom. Drop mic.”
After more than 30 years of fighting a state law that penalized Stanislaus and five other counties, it appears the county is poised to win. Assembly Bill 107, written to fix the “negative bailout” of 1978’s Proposition 13, passed the state Senate on Friday and is headed to Gov. Jerry Brown’s desk.
Because of the way the formula was written, Stanislaus has sacrificed up to $3.4 million in additional revenue every year since the Proposition was passed.
Lawmakers tried over the years to fix the formula, getting close a few times.
“This time, it’s done,” Chiesa said Saturday. “I have no doubt the governor’s going to sign it. I think we’re pretty safe.”
Chiesa praised state lawmakers from the area – Sens. Anthony Cannella and Cathleen Galgiani and Assembly members Kristin Olsen and Adam Gray – for “working so darn hard on it. They all went to bat for us.”
Each of them issued statements Friday lauding the bill:
▪ Olsen, R-Riverbank: “For decades, Stanislaus County has borne the brunt of a state property tax formula that costs the county upwards of $2 million each year. ... I’m thankful to my colleagues, Stanislaus County Supervisor Vito Chiesa, and the governor’s administration for working so diligently to solve this problem, and I urge Gov. Brown to sign AB 107 as expediently as possible.”
▪ Gray, D-Merced: “This bill ends the long-running overtaxation of Stanislaus County residents that resulted from legislation following the passage of Prop 13. Our taxpayers have paid for this flawed policy for over 35 years.”
▪ Galgiani, D-Manteca: “I am proud, after years of efforts, to have led the charge to finally relieve Stanislaus County of the burden of the ‘Negative Bailout’ and am very grateful to the governor, Senate leadership and my colleagues representing Stanislaus County for their support of Senate Bill 107. I know that an extra $2 million or more a year will be a significant benefit to Stanislaus County.”
▪ Cannella, R-Ceres: “By working with our local elected officials and the members of the Legislature that represent Stanislaus County, we were able to find a way to right this wrong through AB 107. I hope that Gov. Brown understands the importance of this bill for Stanislaus County and signs it into law.”
Chiesa said he was glad to see lawmakers that had opposed the idea for years come around and vote in favor of it Friday.
“More than 30 years in the making, it was one sweet night,” Chiesa said Saturday as he raked almonds on his ranch. “Now I have to find another cause.”
This story was originally published September 12, 2015 at 2:41 PM with the headline "Negative bailout for Stanislaus County set to end."