What is ERAF?
It is a mechanism, enacted in July of 1992 by the State Legislature, to shift local tax revenues from cities, counties, and special districts to a state-controlled Education Revenue Augmentation Fund. The state uses this fund to reduce their obligation to the schools. ERAF funds have been used by the State to help school and community college districts meet minimum funding requirements.

Why was ERAF created?
Proposition 13, the 1978 ballot measure capped property taxes in the state and thereby sharply diminished the property tax revenues that counties, cities, and special districts had to provide services. ERAF allowed the legislature to reallocate the property tax among local governments. In the midst of the recession in 1991-92, the State Legislature exercised this power to take city, county, and special district property taxes to fund the state government's obligation to support schools. The amount of the estimated shift for fiscal year 2010-11 and the prior two fiscal years from Marin County local agencies to ERAF is as shown below.