Local government finance: state-mandated reimbursement receivables.

The California Constitution requires that whenever the Legislature or any state agency mandates a new program or higher level of service on any local government, the state provide a subvention of funds to reimburse that local government for the costs of the program or increased level of service, except as specified. Existing law also provides that, with respect to payable claims for costs incurred prior to the 2004–05 fiscal year that have not been paid prior to the 2005–06 fiscal year, those claims may be paid over a term of years, as prescribed.