County supports greater representation, diversity and transparency but warns new State requirements could impose significant unfunded costs on Imperial County and its cities
Imperial County, CA – The County of Imperial is requesting that Governor Gavin Newsom veto Senate Bill (SB) 675, citing serious concerns over the potential financial burden the legislation could place on Imperial County, its cities and ultimately local residents.
As stated in previous letters to Senator Steve Padilla regarding this legislation, Imperial County supports the spirit and many of the goals of SB 675, including increasing diversity and equitable representation on the Imperial County Air Pollution Control District Governing Board, strengthening transparency, expanding opportunities for public participation and improving access to information regarding decisions that affect air quality and public health.
The County’s most serious concern is not with those goals. It is how local governments will be expected to pay for them.
An independent third-party analysis commissioned for the Imperial County Air Pollution Control District found that SB 675 would require significant new financial, administrative, technological, staffing and operational resources while providing no State funding mechanism to cover those new requirements.
The analysis identifies costs presented to the Legislature of approximately $1.5 million in one-time information technology costs, $4.5 million annually in ongoing staffing and administrative costs, and $410,000 annually for expanded air monitoring. The report also identifies additional potential expenses associated with facilities, governing board support, public complaint systems, reporting systems, legal services and other administrative responsibilities.
For a rural region with limited local government resources, those costs are significant.
The independent analysis found that much of the Air District’s existing State and federal funding is restricted to specific programs and cannot simply be redirected to cover the broader administrative costs associated with implementing SB 675.
Without dedicated State funding, the report identifies two principal options for generating additional revenue: increasing Air District permit fees and imposing a per-capita charge on the County of Imperial and the incorporated municipalities within the County.
That makes SB 675 more than an Air District governance issue. It could become a local government budget issue.
A new financial obligation imposed on Imperial County or its cities would compete with the same limited local resources used to provide law enforcement, fire protection, roads, parks, public health, water and wastewater infrastructure and other essential services residents rely on every day.
The County has worked throughout the legislative process to communicate its concerns while continuing to support the legislation’s underlying objectives. The County’s request for a veto is not a rejection of reform or broader board representation. It is a request that reform be accompanied by a realistic implementation plan and sufficient funding to prevent new State requirements from becoming another financial obligation for local governments.
The independent analysis specifically concludes that a per-capita funding mechanism would negatively affect the finances and service-delivery capacity of both Imperial County government and the municipalities within the County.
Relying heavily on permit fees presents additional concerns. The report notes that Imperial County has a relatively small business and permit base and concludes that the increases necessary to finance a newly structured Air District could exceed existing statutory limitations while placing additional financial pressure on local businesses and the regional economy.
The report also raises concerns regarding whether the transition contemplated by SB 675 can realistically be completed within the proposed timeframe.
After reviewing the managerial, human resources, technological, financial, legal and operational work involved, as well as the experience of other California air districts that have undergone similar transitions, the independent analysis concludes that establishing a new Air District structure could take years. It recommends allowing at least 36 months, and potentially longer, to responsibly complete the transition.
Imperial County believes the goals of SB 675 can be accomplished without forcing local governments to choose between implementing State policy and maintaining essential community services.
Imperial County remains willing to work with the Governor, Legislature, Senator Steve Padilla, Imperial County cities, Air District staff and community stakeholders on a framework that increases representation, strengthens transparency and expands public participation while providing adequate resources and a realistic timeline for implementation.
The County’s fiscal and implementation concerns are supported by an independent third-party analysis prepared by Dr. Steven B. Frates, Senior Fellow at the Davenport Institute, School of Public Policy at Pepperdine University, examining the managerial, financial, technological, human resources, facility and legal implications associated with SB 675.
Read the full independent analysis and access the referenced exhibits at the following links: Frates Report and Exhibits
