Last week, the legislative budget conference committee voted to reject the proposal to suspend Proposition 1A, a measure that allows the state to borrow property tax revenues from local government during a severe fiscal hardship.

The Association of California Water Agencies has spearheaded the opposition to a Prop 1A suspension. In early May, the governor proposed to suspend Prop 1A and borrow approximately $2 billion from local government to help bridge the state’s massive budget deficit. The non-partisan Legislative Analyst’s Office offered an alternative solution that would borrow a larger percentage of property tax revenues from those local agencies, like water and wastewater districts.

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