Untangling the State-Local Fiscal Relationship

Three new fact sheets deconstruct the fiscal relationship between state government and the cities, counties, and school districts of California. The State-County Fiscal Relationship in California As counties' fiscal authority has declined, their relationship with the state has become more complex. Now counties are getting new responsibilities. The State-City Fiscal Relationship in California Cities rely mostly on their own revenue sources. But the state has restricted their ability to raise revenue. Financing California's Public Schools State support has declined, and options for increasing revenue at the local level are limited. Reform efforts are under consideration.