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Hon. Rob Bonta 3 October 15, 2021 <br /> Limits State's Discretion When Appropriating State Funds. The measure amends the California <br /> Constitution to specify that the state could not modify how it appropriates state funding as a result of <br /> this measure. Specifically, the state could not deny funding to cities or counties that opt to enact <br /> zoning or land use laws that conflict with state law.Furthermore,the state could not provide a <br /> preference in appropriating state funding to local governments that choose to conform with state law <br /> related to zoning or land use. <br /> Major Fiscal Effects <br /> Some Existing State Allocations to Local Governments Likely Would Need to Change. Some <br /> funding provided by the state to local governments is based on local governments' progress toward <br /> meeting state goals for housing. Because the measure could restrict the state's ability to distribute <br /> funds in this manner, the state likely would need to reallocate funding among local governments <br /> differently. <br /> Broader Fiscal Effects of the Measure Unknown. The measure would make significant changes <br /> to state and local authority over zoning and land use decisions. In some cases,previously <br /> unenforceable laws could become operative at the local level immediately.In other cases, local <br /> governments could enact new laws. If cities and counties adopt zoning and land use laws that restrict <br /> housing development, housing costs could increase and potentially constrain economic growth. <br /> Alternatively, if cities and counties adopt taws that spur housing development,economic growth <br /> could accelerate.The ultimate fiscal effects of the measure on the state and local governments will <br /> depend on decisions by the state's 482 cities and 58 counties. <br /> Summary of Fiscal Effects. We estimate that this measure would have the following major fiscal <br /> effects. <br /> • Fiscal effects of the measure depend on future decisions by the cities and counties and <br /> therefore are unknown. <br /> Sincerely, <br /> LtiL('0441dy. v&tAA- <br /> for Gabriel Petek <br /> Legislative Analyst <br /> 4r‘c454r\i'l <br /> for Keely Martin Bosler <br /> Director of Finance <br />