
Why OC Is Losing $73 Million in Property Taxes and More
Sometimes being in the room helps get the story straight. Orange County lost its case to retain $73 million in property tax revenue, in a legal decision stemming from the 2011 state budget deal. The decision will be appealed, as County Supervisors struggle to fill the gap which will decrease employment and services dramatically, if we lose the appeal. Reports as to how and why we got into the mess are becoming skewed.
In 2011 in order to punish a Democrat Senator for not casting a tax vote, the Governor and/or his Finance staff decided to find a way to unwrap $40+ million in additional funding the Senator was granted in 2009. Voilà! They discovered that when Orange County was refinancing debt related to the 1995 bankruptcy workout (to repay the debt faster and cheaper) there was an uncrossed “T.” To explain, the County had, at the request of the bondholders, swapped a portion of its property tax revenues for vehicle license fees it was sending to the state to provide “collateral” so to speak for the bond repayment. In the 2007 refinance the County neglected or decided not to get the Legislature to reauthorize the swap. So in 2011, Brown merely took… Read More