Logo courtesy of Butte County

OROVILLE, CA (MPG) – The Butte County Board of Supervisors unanimously support state legislation aimed at changing how California reimburses local governments for state-mandated programs, backing a proposal county officials said would provide greater fiscal flexibility for counties.

The board approved a letter of support for Assembly Bill 2640 by Assemblymember Heather Hadwick, R-Alturas, as part of its consent calendar.

County officials said the measure would allow local governments to offset reimbursement reductions identified during state audits against other unpaid state mandate claims still owed to them. The change is intended to prevent situations in which counties must repay funds to the state while still waiting for reimbursement on other mandated programs.

In a letter approved by the board, Chair Bill Connelly wrote that counties are often required to implement state-mandated programs years before reimbursement is received.

“Counties must implement numerous state-mandated programs each year, often long before reimbursement is approved,” Connelly wrote. “The current process can take years, resulting in a growing backlog of unpaid claims and requiring local governments to advance significant funds to meet state requirements.”

County officials said AB 2640 would permit local agencies to apply outstanding reimbursement claims against any repayment obligations resulting from State Controller audit adjustments.

Connelly wrote that the proposal would help avoid situations in which local governments are required to return money while the state continues to owe substantial reimbursements for mandated work.

“Offsets help stabilize local budgets, avoid unnecessary cash outflows, and support continued delivery of public services,” Connelly wrote.

The letter describes the legislation as a practical step toward modernizing the state's mandate reimbursement system and reducing administrative and fiscal burdens on local agencies, reasons noted for the board’s support.

The letter was addressed to Sen. Monique Limón, chair of the Senate Rules Committee, and copies were sent to then Sen. Megan Dahle, Assemblymember Hadwick, the California State Association of Counties and legislative advocates representing county governments.

The Board of Supervisors approved the support letter without discussion as part of the June 9 consent agenda.