CA AB1816

Modifies property tax allocation formulas for qualifying cities in Santa Clara County starting with the 2013-14 fiscal year, phasing in reductions to the Educational Revenue Augmentation Fund (ERAF) reimbursement amount over five years (80%, 60%, 40%, 20%, and 0% respectively).

Requires the Santa Clara County auditor to reduce property tax revenues allocated to qualifying cities by a declining percentage of the ERAF reimbursement amount, with corresponding increases to the county ERAF.

Prohibits the ERAF reimbursement adjustment in any fiscal year when state funding for schools and community colleges is determined under California Constitutional Proposition 98 Test 1.

Establishes this as a state-mandated local program with provisions for reimbursement through existing statutory procedures if the Commission on State Mandates determines costs are mandated by the state.

Declares that special legislation is necessary for Santa Clara County due to unique fiscal pressures on its qualifying cities.