California, United States of America
The following excerpt is from Hayes v. Commission on State Mandates, 11 Cal.App.4th 1564, 15 Cal.Rptr.2d 547 (Cal. App. 1992):
Essentially, the constitutional rule of state subvention provides that the state is required to pay for any new governmental programs, or for higher levels of service under existing programs, that it imposes upon local governmental agencies. (County of Los Angeles v. State of California (1987) 43 Cal.3d 46, 56, 233 Cal.Rptr. 38, 729 P.2d 202.) This does not mean that the state is required to reimburse local agencies for any incidental cost that may result from the enactment of a state law; rather, the subvention requirement is restricted to governmental services which the local agency is required by [11 Cal.App.4th 1578] state law to provide to its residents. (City of Sacramento v. State of California, supra, 50 Cal.3d at p. 70, 266 Cal.Rptr. 139, 785 P.2d 522.) The subvention requirement is intended to prevent the state from transferring the costs of government from itself to local agencies. (Id. at p. 68, 266 Cal.Rptr. 139, 785 P.2d 522.) Reimbursement is required when the state "freely chooses to impose on local agencies any peculiarly 'governmental' cost which they were not previously required to absorb." (Id. at p. 70, 266 Cal.Rptr. 139, 785 P.2d 522, emphasis in original.)
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