The Daily Signal Deannexing: Keeping California's Tax Dollars Local | Elaine Culotti
Feb 18, 2026
A deep look at deannexing as a way to return tax dollars to local communities and restore local control. Discussion of California’s unpaid mandates and how they burden cities. A proposal to pilot local rebuilding through separation and the political tug between Sacramento and city leaders.
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Unfunded Mandates Drain City Budgets
- California's unfunded mandates force cities to spend without timely reimbursement, draining local budgets.
- Elaine Culotti argues deannexation redirects tax revenue back to localities and changes Sacramento's incentives.
Palisades Pilot Proposal Sparked Resistance
- Culotti proposed separating Pacific Palisades from Los Angeles as a pilot to let the community rebuild with its own funds.
- She says the idea rattled cages and met strong opposition because it would reduce Sacramento's revenue.
State Incentives Clash With City Needs
- Sacramento prioritizes filling its general fund and uses statewide mandates to capture local tax dollars.
- Culotti observes this creates a disconnect between state priorities and city-level needs like street cleaning and homelessness services.