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City of Turlock may gain $500k annually under county’s new property tax sharing agreement
Stanislaus County

Recent changes made to the formula of the county’s master property tax sharing agreement could result in an additional $533,797 per year for the City of Turlock. 

All nine cities within Stanislaus County would potentially benefit from the new tax sharing agreement. Turlock is expected to receive the most at $533,797, an approximate $2.6 million over a five-year span, followed by Patterson at $328,438 and Riverbank at $322,870. The City of Ceres stands to gain an additional $215,984 and Hughson $57,274.

The County Board of Supervisors unanimously approved the new tax sharing agreement at their June 14 meeting.

“This has been a very long process and at times, very challenging…I am proud of the work that was done here with all nine of our cities, entire teams that came together to work on the city side, as well as the county side, to recognize that even while you have differences in your interpretation of data, your thoughts on what’s best to move forward as a community, we can work through those differences. We can continue to come to the table, we can continue to talk about it. And we can continue to try to be the best listener in the room. I saw that both on the city side and the county side throughout this process and for me that was very, very encouraging as a final result,” said Stanislaus County CEO Jody Hayes.

Stanislaus County receives approximately 12 percent of total property tax allocations and, on average Stanislaus County cities receive 5.7 percent of total property tax allocations. 

Since 1996 the county and its nine cities have been operating under an arrangement which determines how taxes are split for homes and properties annexed from the county into the cities. That agreement had the county retaining all base funding, while tax increment (or growth) was split at a 70-30 percent rate to the county and cities, respectively. 

The county and cities don’t get to keep all of their respective shares of property tax revenue. The county turns over 55 percent to the Educational Revenue Augmentation Fund (ERAF) while the cities each surrender an average of 26 percent. That means the cities get to spend an average of $946 in revenue for every $1 million assessed compared to $891 for the county. 

The new agreement allows the county to continue retaining all base property tax revenue, while the revenue growth for the new tax rate areas since the 1996 agreement will be split 50-50. That should result in cities netting an average of $1,365 in revenue per $1 million in assessed value growth while the county will net $637. 

The cities’ gain will result in a loss to the county. In looking at the past five years, on average shifting to a 50-50 formula would have reduced county property tax growth revenue by $1.3 million per year, while increasing city revenue $2.1 million annually. The difference of approximately $800,000 is the result of the county requirement to shift a greater portion (55 percent) of property taxes to ERAF while cities shift an average of 26 percent. 

Approximately 100 individual Tax Rate Areas (TRA) have been developed in the county following annexations. The combined base value of all properties at the time of annexation under the 1996 agreement is $266.6 million which has since grown to $6.2 billion. Impacts from the 1996 agreement vary by city and are a direct result of individual city growth patterns. The county Auditor-Controller estimated that $65.4 million in growth was allocated to the cities and $56.8 million of growth was allocated to the county. 

“The bottom line is… in Stanislaus County we have a smaller pie, so, we’re going to reallocate a smaller pie. I’m going to challenge all the employees of the cities and the county, as well as ourselves and the city managers, to change the size of the pie,” said County Supervisor Vito Chiesa, who represents Turlock.

Turlock Mayor Amy Bublak has been advocating for a change in the county tax sharing agreement for years.

“It’s a double-edge sword,” Bublak said about the tax sharing agreement. “I’m happy we got to the table and made changes, but would have liked to see some current changes.”

The mayor said she would have liked to see the County make a retroactive agreement that would have been money in the city’s coffers from the growth seen in Turlock over the past several years.

“We all know we’re facing financial problems in the future,” Bublak said.

The cities now have until July 20 to approve their individual agreements with the county for the next fiscal year. If the Turlock City Council does not vote to approve the agreement by July 20, Turlock would have to wait until the next fiscal year to approve an agreement.

— Jeff Benziger contributed to this report.

 

Costa, Gray propose congressional bill to address critical physician shortage in rural areas
Costa and Gray
San Joaquin Valley congressional members Rep. Jim Costa, D-Fresno, left, and Rep. Adam Gray, D-Merced, are shown discussing their bill H.R. 2106 in a virtual press conference on Tuesday.

BY TIM SHEEHAN

CV Journalism Collaborative

Two San Joaquin Valley congressional representatives have introduced a bill that could help address the vast shortage of doctors in the region, particularly in underserved areas. 

Rep. Jim Costa, D-Fresno, and Rep. Adam Gray, D-Merced, say the Medical Education Act would, if passed, establish a program of grants to support expanded medical education programs in underserved areas of the nation.

The Valley could be one of the key areas that would benefit from the legislation. California has about 90 primary care doctors per 100,000 residents statewide, the federal Health Resources & Services Administration reported in November 2024. 

That’s more than the ratio in some states, and less than some others. The nationwide ratio is about 84 doctors per 100,000 residents.

But in the San Joaquin Valley, home to about 4.3 million people, doctors are much more scarce – about 47 primary care physicians per 100,000 residents, according to Dr. Tom Utecht, chief medical officer at the Fresno-based Community Health System.

That number is “a little over half of what is necessary to take care of a population,” Utecht said Tuesday in a video press conference. “We have the lowest physicians-per-capita rate in all of California, in the San Joaquin Valley.”

Introduced last month, the Medical Education Act is something of a placeholder for the time being until the Congressional Research Service can weigh in with financial estimates of what is needed in different parts of the country, Costa said. 

A companion version was introduced in March in the U.S. Senate by Sen. Tim Kaine, D-West Virginia, and Sen. Alex Padilla, D-Los Angeles.

At this point, the legislation does not specify how much money will ultimately be sought or how grants would be structured.

Costa said the shortage of doctors in the region “is combined with language barriers, cultural barriers and distances … and that would really go for rural parts of our country regardless where folks live.”

“If you live in rural areas, it’s just more difficult to have access to good quality health care,” he added.

Costa said the legislation, if it can survive a Republican-controlled House and Senate and a Republican president, “would be transformative because it would invest expanded resources to minority-serving institutions and colleges located in rural and underserved areas to establish schools of medicine and osteopathic medicine.”

The bill would also create an avenue for more historically Black colleges and universities, as well as Hispanic-serving institutions, to establish medical education programs, Costa said.

Gray noted that when he was in the state Legislature, he and colleagues “worked to get hundreds of millions of dollars in funding to expand the UC Merced campus, to ultimately secure the funding to put the first medical education building up on campus.”

Gray added that the UC San Francisco’s medical education program in Fresno “is an important part of creating the (medical) workforce of the future for the valley, but more importantly, solving this access to care issue that plagues Valley communities.”

At UC Merced, director of medical education Dr. Margo Vener said there has been a surge of interest in the university’s program that funnels students through an undergraduate program for their bachelor of science degree through a medical school degree in collaboration with UC San Francisco.

“All the students that we are enrolling are from the Valley and for the Valley, because they want to really make a difference in promoting health in their communities,” Vener said. That, she added, is likely to eventually translate to those would-be doctors to stay in the Valley to practice medicine.

“The data suggests that two factors really strongly influence where physicians stay to practice,” Vener said. “One of them is where they’re from, which, of course, is why we’re recruiting students from the Valley for the Valley just to stay (and) be doctors for their community. And the other factor is where you went to residency. Those are the two biggest drivers.”

That’s something that was underscored by Dr. Kenny Banh, assistant dean of undergraduate education at UCSF Fresno. “Regional campuses such as UC Merced and UCSF Fresno not only grow doctors, but they take those doctors, physicians and medical students from their communities in the region, and train them in those regions to go back to be physicians in those areas,” he said.

While the costs of the Costa-Gray legislation are yet to be determined, Banh said there are also costs associated with doing nothing to expand medical education.

“There’s health care costs, regardless of how we work it, if we don’t invest in having an adequate supply of physicians,” Banh said. “There’s a cost on the human that can’t access care” and doesn’t get to a doctor until a condition is not treatable “or with significantly worse morbidity and mortality outcomes.”

“And that cost is borne by health systems taxpayers, one way or the other,” Banh added.

But even if the Costa-Gray bill were to pass in this congressional session, the payoff of home-grown medical schools producing a bumper crop of physicians in the Valley or other deprived parts of the country would be years down the road.

“I think it’s really important to understand why we need to invest now for our future, because it takes so darn long” for a student to go from being a college freshman to a practicing doctor, surgeon or specialist, UC Merced’s Vener said. 

After a four-year bachelor’s degree, a student must then complete four years of medical school, which in turn is followed by a residency of three to five years.

“Then often people will do a fellowship to become, for example, a cardiologist or a gastroenterologist or something like that,” she added.

“If you start investing in just one student now, it’s going to take such a long time before they really are there to take care of you at that moment when you need them to be your gastroenterologist, your cardiologist, your emergency physician, or, dare I say, your family doctor,” Vener said.

That, she said, is why it’s also necessary to expand residency programs that can attract would-be physicians into the region in hopes that they will remain once they complete their training. “We need those doctors now, and that’s why this effort is important,” Vener said, “because this is what will both inspire people to stay, but also inspire people to really come and embrace the communities and serve them.”

In a related development, state Assemblymember Esmeralda Soria, D-Fresno, recently introduced a bill for the University of California system to develop a comprehensive funding plan for expanding the current SJV Prime+ BS-to-MD partnership between UC San Francisco and UC Merced, with the goal of transitioning the program to a fully independent medical school operated by UC Merced.

“We have seen firsthand the impacts of medical workforce shortages throughout the Central Valley,” Soria said in a prepared statement. “AB 58 would help ensure the Legislature is equipped with the information needed to secure appropriate funding for the medical education provided for our community at UC Merced.”

— Tim Sheehan is the Health Care Reporting Fellow at the nonprofit Central Valley Journalism Collaborative. The fellowship is supported by a grant from the Fresno State Institute for Media and Public Trust. Contact Sheehan at tim@cvlocaljournalism.org.