CHAMBER VOTES TO OPPOSE CONCEPT OF SALES TAX REDISTRIBUTION IN AB 680

May 2001      The Elk Grove Chamber of Commerce has gone on record as strongly opposing the basic concept of and experimental redistribution of sales tax revenues in the Sacramento Valley region as proposed by Assembly Bill 680 by Assemblyman Darrel Steinberg.
     John Stoppelmann, president of the Elk Grove Chamber of Commerce, said "While acknowledging the need for a regional approach to challenges in infrastructure and quality of life, the Board does not believe that the use of a state-level, legislatively forced tool to regionalism is a proactive way to approach it."
     In voting to oppose the concept behind the bill, the Board of Directors stated, no matter how it is dressed in incentives to develop additional power sources and incentives, the basic concept of the bill is flawed. The Board noted: 
  · This "experiment" in growth control would apply only to this region, but would be controlled by a state legislature comprised of representatives from areas as far away as San Diego.
· Using a per capita formula to distribute funds may defeat the very intent of the bill in that cities will turn to residential growth, resulting in further building away from job sources.
· Companies looking for new locations look for nearby support services, not just housing, in making their relocation decisions. Retail services are an important aspect of the "quality of life" which companies seek for their employees. 
· Reimbursement of local jurisdictions for lost revenues with the state surplus funds is a risky proposition, given the current pace of erosion of the "surplus."
· Sales tax revenue is one of the few sources of income over which local jurisdictions maintain control.

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Elk Grove Chamber Fights Restrictions on Bringing Jobs to Area
November 2000 The Chamber has been working to amend legislation which would make it unreasonably difficult for state office and services to be located in Elk Grove. AB 2494 (Darryl Steinberg) would restrict the placement of new state government services offices to downtown areas meeting specific socio-economic needs. 

The Chamber opposed the new policy direction, since the site of state services should be based on how best and most cost-efficiently to serve the purpose of the agency or service, not redevelopment of a specific area. As we go to press, the bill has been passed by the Senate and returned to the Assembly for concurrence in amendments, some of which partially mitigate our objections. We will continue to work with Assemblyman Steinberg and Assemblyman Pescetti to keep Elk Grove's options open.