Bill Would Limit ERAF Payments

Senate Bill 1637, authored by Senate leader John Burton, D-SanFrancisco, seeks to lessen the damage inflicted by the state on localgovernment finances by limiting future ERAF payments to their 1999-2000level. The 1992 Education Revenue Augmentation Fund (ERAF) wreaked havocon counties throughout the state by shifting local property tax revenuesto fund education, forcing layoffs and reductions in many localgovernment services. While the measure would only freeze payments attheir current level, past attempts at eradicating ERAF from legislationhave been vetoed, and this bill would at least allocate future increasesin revenue to only local government instead of splitting it withschools.