Quirk-Silva Legislation Resolves VLFAA Dispute and Ensures Critical County Funds

Sharon Quirk-Silva (Photo: Chris Prevatt)

Sharon Quirk-Silva (Photo: Chris Prevatt)

As we reported earlier this week, Democratic Assemblywoman Sharon Quirk-Silva is introducing legislation to resolve the dispute between the County of Orange and the State of California over VLFAA property tax funds. The enabling legislation will be introduced in the Senate today. The legislation allows Orange County to maintain a balanced budget and avoid further cuts to critical public services provided by the county.

Assemblywoman Quirk-Silva released the following announcement late Wednesday.

(SACRAMENTO) — Assemblywoman Sharon Quirk-Silva (D- Fullerton) will introduce tomorrow Assembly Bill (AB) 701 to settle a long-term Vehicle License Fee Adjustment Amount (VLFAA) formula dispute between Orange County and the State of California, thus restoring critical county funds and preventing drastic budget cuts. AB 701 will allow Orange County to receive the same dollar-for-dollar amount of VLFAA property tax revenue as all other 57 California counties.

“AB 701 is a bipartisan solution that ensures continued budget stability for Orange County and prevents additional cuts to county public safety programs in this fiscal year,” said Assemblywoman Quirk-Silva. “The entire Orange County Delegation of legislators has already pledged their support and I am confident that the rest of my colleagues will follow suit.”

Orange County owes the state $148 million as a result of 2013 court decision concerning the restoration of the county’s VLFAA property tax allocation as a result of the SB 89 transfer in 2011. Without a deal, the County would have been forced to consider severe budget reduction strategies that could have included laying off employees and making additional funding reductions for public safety programs in this fiscal year. AB 701 ensures both, more time to pay this debt, and that Orange County will receive the same proportion of funds distributed by the VLFAA as other county governments. Additionally, the state will adjust the baseline for this revenue allocation to $53 million.

“Orange County deserves to be treated no differently than any other California county,” continued the Assemblywoman. “It is a privilege to bring local and state officials together to achieve a resolution that so many can support.”

The measure is set to be heard on the Senate and the Assembly Floor next week.

The county also released a statement regarding the pending legislation shortly after Quirk-Silva’s release.

(Santa Ana, CA) — Assembly Bill 701 will be introduced in the California Legislature Thursday to help resolve Orange County’s Vehicle License Fee Adjustment Amount (VLFAA) dispute.

The bill, to be introduced by Assemblywoman Sharon Quirk-Silva (65th District, Fullerton), would allow Orange County to be treated equally with California’s other 57 counties when it comes to the VLFAA funding formula. “This bill gets Orange County back into the VLFAA formula, like all other counties in California, and will provide us with a more secure revenue source,” said Shawn Nelson, Chairman of the Board of Supervisors. “It is also important that this revenue source has the potential for future growth as property values increase.”

The bill will be introduced in the Senate tomorrow and is expected to go to the Assembly on concurrence early next week. County staff will continue to work with Assemblywoman Quirk-Silva and the entire Orange County Legislative Delegation as the bill progresses in the California Legislature.