LAKE COUNTY >> California’s budget for the 2016-2017 fiscal year may include about $1.3 million in provisional aid to reimburse the tax revenues Lake County lost in the wake of the Valley Fire, a state official confirmed on Thursday.
The money is part of a $1.9 million budget item that provides financial assistance to local governments that were affected by the 2015 fire season, reimbursing them for losses in property, sales, and transient occupancy taxes this fiscal year.
In the county’s case, it lost big — nearly $2.2 million according to most recent county data — in property taxes thanks to the Valley Fire’s massive toll on homes and structures.
“These funds are necessary to make sure vital services can go off without a hitch,” State Senator Mike Mcguire said. “The recovery process is going to take time and we need to make sure that Lake County has what it needs for future success.”
However, the news of was met by county staff with mixed feelings of relief and uncertainty because the item’s language requires the county to submit claims and have them approved by the state before they get any of the funds.
“Even though the money is there, we are going to have to do a lot of paperwork,” Public Information Officer Jill Ruzicka said. “It’s not like we have it in our pockets.”
Furthermore, the county administrative office isn’t sure that all lost revenue has been documented.
“It’s too early to know if the amount authorized in the budget is sufficient as it will take many months to document and quantify the losses,” Chief Deputy County Administrative Officer Jeff Rein added.
There’s also the possibility of the item being erased from the budget entirely by Gov. Jerry brown in the 12 days he has to finally approve it.
Yet, McGuire believes this to be unlikely since the provisions were in Brown’s original proposal earlier in the year. In fact, his administration worked on the idea in corroboration with the senator and Assemblyman Bill Dodd.
“He wants the recovery to be successful,” McGuire said. “These dollars are really important.”
No estimate has been given indicating when the governor will sign it into law.
