County of San Diego v. State of California

164 Cal. App. 4th 580, 79 Cal. Rptr. 3d 489
CourtCalifornia Court of Appeal
DecidedJuly 1, 2008
DocketD048743
StatusPublished
Cited by121 cases

This text of 164 Cal. App. 4th 580 (County of San Diego v. State of California) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County of San Diego v. State of California, 164 Cal. App. 4th 580, 79 Cal. Rptr. 3d 489 (Cal. Ct. App. 2008).

Opinion

*587 Opinion

BENKE, J.

The County of San Diego (San Diego County) and the County of Orange (Orange County) 1 separately filed actions against the State of California, the State Controller, the State Treasurer, and the Director of the state Department of Finance (collectively, the State) seeking reimbursement under article XIII B, section 6 of the California Constitution 2 3for the costs of providing state-mandated programs and services from the 1994-1995 fiscal year through the 2003-2004 fiscal year. Both complaints include a first cause of action for declaratory relief, a second cause of action entitled “Failure to Reimburse Mandated Costs,” and a third cause of action seeking a writ of mandate directing full payment on the Counties’ claims for reimbursement. The actions were consolidated by stipulation and tried to the court. The court entered judgment for each of the Counties in the amount of its total claim for reimbursement ($41,652,974 for San Diego County and $72,755,977 for Orange County), plus interest at the legal rate of 7 percent from the date each filed its complaint. The judgment also directed issuance of a writ of mandate requiring the State to pay the amount of the judgment plus interest to the Counties “over the fifteen[-]year period required by Government Code[ 3 ] section 17617 (or a shorter period if the Legislature enacts a shorter period, elects to pay the debt off earlier or is otherwise required by law to pay the debt off over a shorter period) in equal installments beginning with the budget for the 2006-07 fiscal year and annually thereafter each successive budget until paid.”

Both the State and the Counties appeal the judgment. The State contends (1) the judgment and writ relief fashioned by the court violate the separation of powers doctrine; (2) the Counties’ sole mechanism to obtain payment on their reimbursement claims is through article XIII B, section 6 and its implementing Government Code provisions; and (3) because the Government Code provides the Counties’ exclusive remedy for determining the amounts they are owed on their reimbursement claims, there is no case in controversy and, therefore, the trial court abused its discretion in granting declaratory relief. In their cross-appeal, the Counties contend (1) the court imposed a greater burden of proof on them than is required by law; (2) the court erroneously concluded they had not adequately pled a cause of action for breach of implied contract; (3) the court erroneously applied Proposition 1A (a ballot initiative) and section 17617 retroactively to this case; and (4) the court erroneously denied the Counties prejudgment interest on their claims. We reverse the judgment and direct the trial court to vacate the writ of mandate.

*588 BACKGROUND

Article XIII B, section 6(a), provides, in relevant part: “Whenever the Legislature or any state agency mandates a new program or higher level of service on any local government, the State shall provide a subvention of funds to reimburse that local government for the costs of the program or increased level of service . .. ,” 4 The purpose of this provision “is to preclude the state from shifting financial responsibility for carrying out governmental functions to local agencies, which are ‘ill equipped’ to assume increased financial responsibilities because of the taxing and spending limitations that articles XIIIA and XIIIB impose. [Citations.]” (County of San Diego v. State of California (1997) 15 Cal.4th 68, 81 [61 Cal.Rptr.2d 134, 931 P.2d 312].) 5

After the adoption of article XIII B, the Legislature enacted a comprehensive statutory and administrative scheme for implementing article XIII B, section 6, and resolving claims and disputes arising out of its provisions. (§ 17500 et seq.; Kinlaw v. State of California (1991) 54 Cal.3d 326, 331-333 [285 Cal.Rptr. 66, 814 P.2d 1308] (Kinlaw).) Under section 17581, subdivision (a), the Legislature may identify a mandate in the state budget act as being one for which reimbursement will not be provided that fiscal year. If the Legislature does not provide funding for a reimbursable mandate in the budget act, local agencies are not required to provide the mandated program or services during that fiscal year. (§ 17581, subd. (a).)

The Counties’ original complaints, filed in early 2004, alleged that the State had failed to promptly and fully reimburse the Counties for the costs of state-mandated programs and services for the 2001-2002 and 2002-2003 fiscal years and that the state budget for fiscal year 2003-2004 also failed to appropriate funding to reimburse the Counties for state-mandated programs and services. The Counties respectively alleged that by the end of fiscal year 2003-2004, the State would owe San Diego County more than $30 million and Orange County more than $110 million for the provision of state-mandated services and programs.

In August 2004 the Counties jointly moved for judgment on the pleadings as to the first causes of action for declaratory relief and their requests for a *589 writ of mandate. The Counties sought a judicial determination that the State has a constitutional and statutory obligation to fully and promptly reimburse them for the costs they have incurred in providing programs and services and that the State also has a contractual obligation to reimburse them apart from its constitutional and statutory obligation. 6 Asserting that a traditional writ of mandate was “the correct method of compelling the State to perform a clear and present ministerial legal obligation,” the Counties asked the court to “issue a writ of mandamus directing [the State] to identify appropriated but unencumbered funds in the State Budget from which the claims can be paid and to pay the [Cjounties on their claims for reimbursement, or to appear at a later date . . . and prove why such claims are not valid.”

At the hearing on the motion in October 2004, the State advised the court that Proposition 1A, a statewide initiative measure on the upcoming November 2, 2004, election ballot, would, if adopted, amend the California Constitution to allow the State to pay its mandate-reimbursement obligations over time. The State argued the passage of Proposition 1A would render the Counties’ action moot. The court asked the parties to file letter briefs addressing how the adoption of Proposition 1A would affect the Counties’ action.

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Bluebook (online)
164 Cal. App. 4th 580, 79 Cal. Rptr. 3d 489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-san-diego-v-state-of-california-calctapp-2008.