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County auditors warn Saint Helena could lose about $1 million in vehicle-license-fee revenue if Napa Valley Unified becomes basic-aid
Summary
Napa County officials told the Saint Helena City Council that a combination of the state—s ERAF shifts and the VLF swap could leave the city about $1 million short if Napa Valley Unified School District becomes a "basic aid" district; county and city leaders described legislative work underway to prevent the loss.
Napa County officials warned the Saint Helena City Council on March 11 that a legal and accounting mechanism long used to fund California schools could leave the city about $1 million a year short of vehicle-license-fee (VLF) backfill should Napa Valley Unified School District move to "basic aid."
The county—s auditor-controller and treasurer presented an overview of how Proposition 13-era apportionment (the AB 8 factors), the Education Revenue Augmentation Fund (ERAF) shifts and the 1998 VLF swap interact, and how those mechanisms currently funnel VLF payments through school-funding formulas rather than directly to cities and counties.
Tracy Scholze, Napa County auditor-controller, said ERAF and related shifts have the effect of moving roughly 12 cents of every dollar of local property tax into a bucket used to satisfy state school-funding obligations. "We need to be aware and…
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