Four months into the legislative session, the California Contract Cities Association’s top legislative priority is stopping AB 1250 (Jones-Sawyer). AB 1250 would massively limit the circumstances under which cities can contract out for municipal services. AB 1250 bans cities from contracting out for services “solely on the basis that savings will result from lower contractor pay rates or benefits” while not permitting cities to consider the often-significant overhead costs that could be saved from contracting out in a cost difference analysis. It further requires that cities create public databases listing the names and salaries of contracted employees. Finally, AB 1250 creates several new bureaucratic reporting requirements when renewing or entering into contracts, including requiring a cost-benefit analysis.
We believe that AB 1250 amounts to a de facto ban on contracting for municipal services and therefore cuts to the very heart of our reason for existence. The contract city model has allowed cities to provide quality services to residents without adding to their already-significant tax burdens for decades. Recent state mandates and uncertainty in the economy have led to substantial budget constraints and the need for flexibility in local governance in order to maintain our cities’ financial health. By massively limiting the circumstances under which a city can contract for services and creating onerous new financial burdens on cities which do so, AB 1250 puts the entire contract city model—a model that has worked well for 60 years—in jeopardy.
AB 1250 passed out of the Assembly Public Employees, Retirement, and Social Security Committee and is currently being held in the suspense file of the Assembly Appropriations Committee. We are ensuring that we will be fully prepared when it comes out of suspense and comes up for a hearing. We are working with our partners from the League of California Cities to raise our concerns to the Appropriations Committee, and our member cities are making their voices heard. More than half of our member cities have gone on the record against AB 1250 by sending letters to the Legislature and contacting their Assemblymembers. (Click here to view current list of our member cities against AB1250)
It is crucial for the remaining cities to contact their representatives to explain how AB 1250 will impact them. In particular, any cities whose Assemblymembers are members of the Assembly Appropriations Committee (such as Richard Bloom, Ian Calderon, Ed Chau, Laura Friedman, Eduardo Garcia, or Al Muratsuchi) need to go on the record against AB 1250 as soon as possible. Please contact CCCA Legislative Analyst Ilissa Gold at email@example.com to answer any questions or get a template letter.