BY MIKE LYNCH
Special to the Journal
When Prop 13 passed in 1978 the state of California had a major problem. How would local government and schools meet their revenue needs? Fortunately, the state had a gigantic budget surplus at that time. Those funds would serve to bail out our cities and counties.
In crafting the bailout the state devised a formula that satisfied most local govt, but inadvertently penalized six counties that had been prudent in their taxation policies, including Stanislaus. Known as the time as a “negative bailout” these six counties received less funds from the new deal than before Prop 13 was approved.
Under the formula, Stanislaus County lost millions of dollars annually, until 2015.
Our local legislators worked tirelessly to find a fix. Gary Condit, Sal Cannella, Dick Monteith, Bill Berryhill and others worked to get a solution. Legislation actually passed one or both houses only to be opposed by the Department of Finance and even vetoed by governors.
Enter 2015. Stanislas was primarily represented by Senators Cannella and Galgiani, and by Assemblypersons Gray and Olsen. Two were Republicans, and two were Democrats. More importantly, all four had proven records of putting issues, and their districts, before partisan politics. All had been criticized for not being Democratic or Republican enough.
Another major player was Stanislaus County Supervisor Vito Chiesa, who had become an influential figure in the capitol because of his role in the state association representing county governments.
Governor Brown had a major initiative on the floor, a significant reform of redevelopment law impacting local government.
The four legislators, and Supervisor Chiesa, saw an opportunity.
Why not add a provision fixing the negative bailout problem to that bill?
Gray, Olsen, Cannella and Galgiani said “let’s go!” Chiesa had been working toward this for months, and was in a position to lighten potential opposition from other jurisdictions.
Easy win? Nope.
Partisan politics often gets in the way of good government. The 2016 elections were not far off. Both the Democratic and Republican political staffs were anxious about the negative bailout provision. Olsen was a rumored candidate against Galgiani. Gray was always in trouble with the activists of both parties. Democratic political staffers weren’t going to let a bill that enhanced Olsen’s local standing easily pass the floor. Likewise, GOP staffers didn’t want Galgiani or Gray to get any credit for good district work. After all, both were in swing districts.
Other provisions of the bill had engendered some opposition around the state. Two valley mayors got involved. One, from Fresno, told a state senator who represented a portion of Stanislaus that there would be serious repercussions if he supported the bill, and he didn’t. More importantly Garrad Marsh, Mayor of Modesto, didn’t like other parts of the bill that penalized Modesto, but declared to Assemblyman Gray “this change is long overdue.” He supported it. Other local government opposition was minimal. Chiesa had done his part.
The suggestions of a political price to be paid fell on deaf ears with Olsen, Gray, Galgiani and Cannella. These four legislators had proven to be spectacularly effective for their districts, and political paranoia wasn’t about to divert them from fixing the negative bailout problem. None of the four would put loyalty to their party above loyalty to the people they represented.
Since being signed into law, as of the end of the current fiscal year, Stanislaus County will have received over $100 million it wouldn’t have gotten before this bill became law. These funds are available for all county functions — law enforcement, health, roads etc. — there are no restrictions on usage.
The point of this column? Working together matters. Partisanship is less important than problem solving. Elect folks who put district loyalty above partisan loyalty.
If you happen to see former state legislators Olsen, Gray, Cannella, Galgiani and Supervisor Chiesa around in the community take a moment and tell them “great job on the $100 million negative bailout fix.” And remember, it’s a gift that keeps on giving.
