Bill would create a perpetual reporting loop for unused federal funds

The League of California Cities and a coalition of local government associations are opposing a bill that would have a considerable financial impact on cities. The bill, set for a July 5 hearing in the Senate Governance and Finance Committee, would add a new reporting requirement for some unused federal funds.

AB 1713 (Gipson) would require local agencies to submit a written report to their governing body detailing their past and planned uses for certain types of underused federal funds. The new requirement would kick in one year before the fund’s expiration date if half the funds are unexpended.

The bill would keep local governments in a state of perpetual reporting — or in most instances — duplicative reporting. Federal dollars often come with very specific usage and reporting requirements.  

The proposed mandate would also force many local agencies to hire new staff to track and report the required information. These costs could exceed tens of millions of dollars annually statewide while doing nothing to address real problems with utilizing federal resources. 

Most cities never fully recovered from the 2007 Great Recession. Cal Cities is calling on the state to work with local governments to see how the state and local agencies can create better partnerships when spending federally allocated money in California instead of burying cities in duplicative paperwork

A sample letter of opposition for cities is available. For questions or more information about AB 1713, please contact Legislative Affairs Lobbyist Johnnie Piña.