In a decision that could ultimately result in a huge fiscal windfall to California counties and their libraries, a judge has ruled that the state must repay as much as $12 billion in property tax funds it has been shifting to public schools over the past seven years.
In the aftermath of the Proposition 13 anti-tax measure, then-Gov. Pete Wilson began transferring $3 billion annually from the counties’ property-tax apportionment to schools in 1993, resulting in major cuts to local services, including libraries, which saw their budgets slashed as much as 50%.
The practice was challenged in a suit filed by 54 of the state’s 58 counties, and Sonoma County Superior Court Judge Laurence Sawyer ruled October 18 that the California constitution requires reimbursement for new programs imposed by the state, the San Francisco Chronicle reported October 19.
However, the final resolution of the case is not expected for some time. “We’re pretty confident that we’ll win the case on appeal,” California Department of Finance spokesman Sandy Harrison told the Chronicle.
Posted October 25, 1999.