Local governments count on property taxes, sales taxes and vehicle license fees to help pay for local services. The state has a lot of control over this local tax money. To help balance the state budget, the state sometimes uses local tax money or delays payments to local governments for state mandates.
Change the State Constitution to reduce state control over local tax money. The state could not reduce the taxes that local governments are now getting. The state’s ability to use local tax money would be very limited. The state would have to pay local governments for mandates or drop the requirements.
Effect on government spending: |
Local government funding would be higher and more stable. Local funds could no longer be used to help balance the state budget. So, the state probably would have to cut spending on state programs or raise taxes.