Bipartisan Work Furthers Passage of AB 2040 - Legislation to Provide Financial Relief for Madera County
MADERA, Calif. – Assembly Bill 2040 (R-Bigelow), to provide redress and financial relief for Madera County and its residents, passed from the Senate Appropriations Committee’s suspense file due to the efforts of State Senator Anna Caballero and Assemblyman Frank Bigelow.
Co-authored by Senator Caballero and sponsored by the Madera County Board of Supervisors, AB 2040 would right a wrong in Madera County that, if not corrected, would penalize the County’s budget by approximately $5 million dollars.
AB 2040 relates to the allocation of tax monies at the local level. The bill clarifies the apportionment factors that Madera County can use to allocate property tax that they keep and that they send to the state for a number of years after the construction of Educational Revenue Augmentation Fund, the Vehicle License Fee Adjustment Amount, and the so-called “Triple Flip.” An audit by the State Controller’s Office in September 2015 suggested Madera County had erroneously under-allocated funds to the County starting in 2006-07. This error was compounded when the auditor-controller utilized this amount for subsequent years until the error was caught during a routine audit by the State Controller.
Regrettably, the State Controller’s audit was delayed by a number of years, resulting in a large fiscal impact. While current law only allows the County to recoup a portion of the lost revenue, AB 2040 requires the Madera County auditorcontroller to make an allocation adjustment for the fiscal years 2006-07 through 2013-14.
AB 2040 would provide tremendous relief to Madera County during the COVID-
19 pandemic and economic downturn. “AB 2040 would be a lifeline for the County, its programs, and the residents we serve,” said Madera County Board
Chairman David Rogers. Chairman Rogers added, “The Board of Supervisors is tremendously grateful to Assemblymember Bigelow and Senator Caballero for authoring this legislation. Senator Caballero’s ability to get the bill off the Senate Appropriation Committee’s suspense file is incredible under the current legislative circumstances.”
Given California’s current fiscal situation, the Senate Appropriations Committee is restricting bills that cost the state money from moving forward this year. Senator Caballero, on behalf Madera County and its residents, was able to secure the bill’s release from the Committee. “I’m extremely grateful to the Chairman, Anthony Portantino, for understanding and sympathizing with the needs of my constituents in this part of the Central Valley, especially given such difficult times, Senator
Caballero stated, adding, “AB 2040 truly will right a wrong, a wrong that Madera
County and its residents need remedied immediately.”
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Senator Anna M. Caballero represents the 12th Senate District, composed of Merced, Madera, and San Benito Counties, and portions of Fresno and Stanislaus Counties. ###