HomeMy WebLinkAbout01-Budget Deliberations
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League of California Cities
1400 K Street, Suite 400. Sacramento, California 95814
Phone: (916) 658-8200 Fax: (916) 658-8240
www.cacities.org
Please Deliver Immediatelv
June 25, 2003
Contact: Chris McKenzie
Dwight Stenbakken
(916) 658-8275
(916) 658-8213
TO:
Mayors, Council Members and City Managers
FROM:
Chris McKenzie, Executive Director
Dwight Stenbakken, Legislative Director
RE:
Possible Assemblv Bude:et Proposal Also Could Contain Sie:nificant
Cuts to Local Governments Over Three Years
From a variety of sources (including meetings by city officials with state assembly
members over the last few days) we have begun to put together some of the details on a
budget proposal that may be offered in the Assembly as early as tomorrow (Thursday) or
the next day. We have not been told anything definitive as of yet by the Assembly
leadership or staff, but the elements may include the following:
. Local government reductions (possibly for three years), including the following:
I. 0 $250 million reduction from cities (per capita allocation)
o $250 million reduction from counties (per capita allocation)
2. 0 $100 million reduction from RDAs to ERAF (same formula as the current
year reduction)
3. 0 Possible programmatic cuts to COPS, Juvenile Justice, Booking Fees and
other programs are unclear.
o We have heard from a reliable staff source that the plan would fund the VLF
backfill as the VLF increase is phased-in (they've accounted for $700 million
cost). If the backfill is eliminated it would add costs to cities and counties.
o Deferral, suspension or repeal of various unfunded mandate payments
. New revenues include the Yl cent sales tax for deficit reduction bonds and an increase
in the Personal Income Tax rates (as proposed by the Governor in January).
As soon as we have concrete details about the proposal, we will share them with you and
post any individual city analysis on our website, www.cacities.org. We want to stress that
the League has not agreed to support any state budget. In fact, by board and General
Assembly action, our support is completely conditioned upon the legislature offering a
constitutional amendment to protect local government revenues-something no
Assembly Member has indicated strong support for over the last few days of meetings.
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