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Tuolumne CAO Has Mixed Reaction To State Budget

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Sonora, CA — Tuolumne CAO Craig Pedro says he is "greatly relieved" that the state will not be taking away local gasoline tax funds to help balance the budget, but says there is still much to dislike about new state plan.

"There are a lot of things we don’t know yet about budget, but we do know there will be negative impacts on our health, welfare and behavioral health departments," says Pedro. "We also have a major issue, which is the suspension of Proposition 1A, which will allow the state to take eight percent of our local property tax."

By taking Proposition 1A funds, the state is constitutionally required to pay them back within three years with interest. Pedro says the county might be able to borrow against internal reserve funds to offset that loss, and this is something that the Board of Supervisors will decide at a future meeting.

Pedro adds that the state is planning to allow local municipalities to borrow money through a statewide joint powers authority that is being created to help offset the loss of property tax dollars. He says much of those details have yet to be released.