Funding of Realignment
AB 109 provided a dedicated and permanent revenue stream to the counties through Vehicle License Fees and a portion of the State sales tax. In November 2012, California voters passed Governor Brown’s Proposition 30 which created a CONSTITUTIONAL amendment prohibiting the Legislature from reducing or removing Realignment funding to the counties.
The only piece that is temporary is the allocation of these revenues to the individual counties. This one-time allocation for 2011-12 came at the explicit request of the counties, who wanted to be able to assess whether the initial distribution of funds reflects the number of offenders they receive.
A permanent allocation of the ongoing revenues is expected to take place in fiscal year (FY) 2014-2015.
$400 million was provided to the counties in FY 2011-2012, growing to more than $850 million FY 2012-2013 and more than $1 billion in 2013-2014.
The following trailer bills were signed in 2011 to secure sufficient funding for counties:
- Gave counties additional flexibility to access funding to increase local jail capacity for the purpose of implementing Realignment
- Came into effect upon the passage of AB 111.
- Authorized counties who have received a conditional award under a specified jail facilities financing program to relinquish that award and reapply for a conditional award under a separate financing program.
- Lowered the county's required contribution from 25 percent to 10 percent and additionally required CDCR and the Board of State and Community Corrections to give funding preference to those counties that relinquish local jail construction conditional awards and agree to continue to assist the state in siting re-entry facilities.
- Outlined the financial structure for allocating funds to a variety of accounts for realignment.
- Established the Local Revenue Fund 2011 for receiving revenue and appropriates from that account to the counties.
- Directed the deposit of revenues associated with 1.0625 percent of the state sales tax rate to be deposited in the Fund.
- Established a reserve account should revenues come in higher than anticipated.
- Implemented sufficient protections to provide ongoing funding and mandated protection for the state and local government.
- Dedicated a portion ($12) of the Vehicle License Fee to the Fund.
- Revenue comes from two sources; freed up VLF previously dedicated to DMV administration and VLF that was previously dedicated to cities for general purpose use.
- Provided counties with a one-time appropriation of $25 million to cover costs associated with hiring, retention, training, data improvements, contracting costs, and capacity planning pursuant to each county's AB 109 implementation plan.