by Bradley B. Johnson, Esq., Jeffrey K. Dorso, Esq., and Dan M. Silverboard, Esq.          May 2010

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Governor Schwarzenegger’s May revisions to the 2010-11 state budget did not include an increase
in Williamson Act subvention funding. Funding for the Williamson Act program remains at the
nominal $1,000 set by the Governor starting in the 2009-10 fiscal year.

The California Legislature adopted the California Land Conservation Act¹ (“Williamson Act”) in 1965
to prevent “leapfrog” development and slow the conversion of California’s agricultural land to
developed uses. Under the Williamson Act, landowners receive a property tax reduction in exchange
for contractually restricting their land to agricultural and open space uses for a rolling 10-year term.²

The Open Space Subvention Act³ authorizes the state to partially reimburse, or “subvene,” local
governments for property tax revenue lost due to participation in the Williamson Act. In the past, the
state paid on average $38 million in subventions to local governments annually.

In the 2009-2010 budget bill, the Legislature reduced Williamson Act subvention funding by 20%, to
$27.7 million. In July 2009, however, Governor Schwarzenegger used his line-item veto authority to
virtually eliminate even the reduced Williamson Act budget proposed by the Legislature. For the
2009-2010 fiscal year, the state budgeted a token $1,000 for subvention payments to counties.

Counties participating in the Williamson Act program have responded differently to the elimination of
subvention funding. According to a survey⁴ conducted by the California State Association of
Counties this past February, nine of the 23 responding counties indicated that they have stopped
accepting new land into the Williamson Act program. Other counties are currently examining ways to
eliminate the program altogether, or implement an alternative funding mechanism. Imperial County,
for example, with more than 130,000 acres under contract, voted in February to non-renew (i.e.,
phase out) all its Williamson Act contracts. Yolo County is currently pursuing a ballot measure to
establish a farmland preservation tax to address some of the loss in state subvention funding.

If you have any questions regarding subventions funding, or the Williamson Act in general, please
contact Bradley B. Johnson, Jeffrey K. Dorso, or Dan M. Silverboard of Diepenbrock Harrison’s Land
Use and Environmental Law Department.

                   — Brad Johnson, Jeff Dorso and Dan Silverboard are attorneys for Diepenbrock Harrison
                                                                                                          in Sacramento, California.

¹ Government Code § 51200 et seq.
² More than 16 million acres of farmland are enrolled in the Williamson Act Statewide.
³ Government Code § 16140 et seq.
⁴ http://www.counties.org/images/public/Advocacy/ag_natres/WA%20Survey%20Summary_FINAL%20CM_3-2-10%20(2).pdf