Group to Seek Repeal of Law Aiding Cities

The County Supervisors Assn. of California announced Monday that it would seek the repeal of a new law providing aid to cities, including 43 in Los Angeles County, that levy little or no property tax.

The law, which cities sought because they contended they were caught in a fiscal bind after the passage of Proposition 13 in 1978 limited their ability to increase property taxes, takes effect next year and will be phased in over 10 years.

According to legislative estimates, some cities would actually stand to lose funds in the first year of the law because of its funding formulas, but by fiscal 1997-98, cities would get $84.3 million. The 43 cities in Los Angeles County would stand to gain $41.6 million of that amount.

Larry Naake, the association’s executive director, complained at a Capitol press conference that some cities with budget surpluses would benefit at the expense of financially hard-pressed counties.

“It’s ludicrous that rich cities are taking money away from financially strapped counties,” Naake declared.