Prop 1A (2004) was an important protection for local government stability. 

Since then, the California League of Cities, California State Association of Counties and California Special Districts Association have become major forces in the budget negotiations in Sacramento.

Prior to 2004, local government got by on smiles and pleading. 

Now advocates smile and plead but have a backstop in place with Prop 1A and a hammer available in the form of some solid coalitions that have been built around the state to defend local government.

PublicCEO’s worry is that the negotiators on behalf of local governments will consider the pulling of the Prop 1A trigger to be some sort of failure. 

Not at all.

At least if Prop 1A is triggered, local governments get paid back at some point. 

Under some of the considerations for loss of Highway Users Tax Account (HUTA) dollars, the counties don’t ever get paid back.

The present value of zero dollars in the future is zero. The present value of a loan now with interest in the future in sizable.

For those few people who are advocating on behalf of all of California’s local government – you are owed gratitude. 

Keep fighting.

Remember that Prop 1A has protections in place that might be more favorable than other alternatives.

Pulling the Prop 1A trigger can be much better than some of the alternatives. Let’s not box ourselves in by saying never to Prop 1A and then suffer a worse fate.

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