HomeMy WebLinkAbout32- City Administrator
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City of San Bernardino
City Council Meeting
November 17,2003
1. Call to Order
2. Swearing In of Gov. Swartzenegger - general comments
3. The Deficit - budget
a. VLF repeal
i. Regulations
ii. 3 month gap
iii. Refund
iv. Backfill
b. $10 Billion in deficit bonds
c. Spending cap
d. Sales taxlProperty tax swap
i. City sales tax
e. Redevelopment
4. Workers compensation
5. City Wish List (?)
6. Politics
a. Burton's perspective
b. Brulte's perspective
c. Other
/ /'-/7-03
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Sent by: Governor's Press Office
916 323 7170j
11/17/2003 3:13PMj #410j Page 1/10
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. EXECUTIVE DEPARTMENT .
= STATE OF CALIFORNIA =
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. A PROCLAMATION .
. BY THE GOVERNOR OF THE STATE OF CALIFORNIA .
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. WHEREAS, an extraordinary occasion has arisen and now exists requiring that the .
. Legislature of the State of California be convened in extraordinary session; now therefore, .
. I, ARNOLD SCHWARZENEGGER, Govemor of the State of California, by virtue of .
. the power and authority vested in me by Section 3(b) ArtIcle IV of the Constitution of the .
. Stale of California, do hereby convene the Legislature of the State of California to meet in .
. extraordinary session at Sacramento, California on the 18~ day of November, 2003, at a
time to be determined, for the following purpose and to legislate upon the following subject: .
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. To consider and act upon legislation relating to reform of California's workers' .
. compensation system. .
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II EXECUTIVE DEPARTMENT .
= STATE OF CALIFORNIA =
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II A PROCLAMATION II
II BV THE GOVERNOR OF THE STATE OF CALIFORNIA II
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. WHEREAS, an extraordinary occasion has arisen and now exists requiring that the II
. Legislature of the State of California be convened in extraordinary session; now therefore, .
II I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of .
II the power and authortty vested in me by Section 3(b) Article IV of the Constitution of the .
II State of California, do hereby convene the Legislature of the State of California to meet in II
. extraordinary session at Sacramento, California on the 18~ day of November, 2003, at a
time 10 be determined, for the following purpose and to legislate upon the following subject: II
II .
. To repeal Senate Bill 60 (Cedillo), an act to amend Sections 1653.5, 12800, 12801, .
12814.5, and 13000 of, and to add Sections 12801.2 and 12801.910, the Yehicle
. Code, relating to vehicles, that was signed into law by the Governor on September 5, II
II 2003, and filed with the Secretary of Slate on September 8, 2003. II
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II K IN SHELLEV .
. Secretary of Slate .
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Sent by: Governor's Press Office
9183237170j
11/17/2003 3:14PM; #410j Page 3/10
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. EXECUTIVE DEPARTMENT .
I STATE OF CALIFORNIA =
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= A PROCLAMATION =
. BYTHE GOVERNOR OF THE STATE OF CALIFORNIA .
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. WHEREAS, an extraordinary occasion has arisen and now exists requiring that the .
. Legislature of the State of California be convened in extraordinary session; now .
therefore,
.. I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of -.
the power and authority vested in me by Section 3(b) Article IV of the Constitution of
. the State of California, do hereby convene the Legislature of the State of California .
_ to meet in extraordinary session at Sacramento, california on the 18111 day of .
. November, 2003, at a time to be determined. for the following purpose and to .
legislate upon the following subjects:
-. 1. To consider and act upon legislation relative to placing before the ..
voters In the election to be held March 2, 2004, a general obligation
. bond to repay. restructure and finance california's budget deficit _
. recovery; .
. 2. To consider and act upon a Conslltullonal amendmenlto be placed .
. before the voters in \he election to be held March 2, 2004, a limit on .
. government spending to prevent a future budget deficit, establish a .
reserve fund, and vest extraordinary powers in the Governor and
. Director of Finance in times of fiscal emergency; and .
. 3. To consider and act upon legislallon relative to funding the offset of .
. the motor vehicle license fee frorn the General Fund. .
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Sent by: Governor's Press Office
916 323 7170 j
11/17/2003 3:15PMj #410j Page 4/10
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. IN WITNESS WHEREOF I have hereunto ..
. set my hand and caused the Great Seal of
. the Stale of California to be affixed this .
. Hilda Nov .
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gent by: Governor's Press Office
916 323 7170;
11/17/2003 3:16PM; #410; Page 5/10
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. EXECUTIVE DEPARTMENT .
= STATE OF CALIFORNIA =
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. EXECUTIVE ORDER 5-1-03 .
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. Whereas, California has relied upon a motor vehicle tax in .
. the form of a license fee as a substitute for ad valorem property taxes .
. upon motor vehicles since 1935: .
. Whereas, at the time it was instituted, the motor vehicle .
. tax was 1.75% of a vehicle's current value; .
. Whereas, in 1948 the motor vehicle tax was raised to 2% .
. of a vehicle's current value; .
. Whereu, the revenue from the motor vehicle tax fees is .
. distributed to cities and counties to fund operations of local .
. government; .
. Whereas, in the years 1981 through 1983, the legislature .
. reduced the amount of motor vehicle tax revenues to be distributed to .
local governments by approximately $700 million;
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. Whereas, Proposition 47 was passed by the voters in .
1986 to provide that all motor vehicle tax revenues, less the cost of
. collecting the tax, must be allocated to cities and counties: .
. Whereas, In 1998, in order to permanently relieve ·
. California taxpayers from paying the full tax burden imposed by motor .
. vehicle taxes, section 10754 was added to the Revenue and Taxation .
. Code to allow for an offsat against monies that would otherwise be .
collected by the motor vehicle tax;
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. Whereas, in 1998, in order to make up any shortfall in the .
. amounts payable to local governments on account of tfie offset under .
Revenue and Taxation Code section 10754, section 11000 was added
. to the Revenue and Taxation Code to require transfers from the .
. General Fund as successor tax revenues to the motor vehicle tax; .
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Sent by: Governor's Press Office
916 323 7170;
11/17/2003 3:16PM; #410; Page 6/10
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. Whereas, section 10754 of the R.evenue and Taxation .-
. Code also provides that during any period in which It Is determined
. that insufficient monies are available to be transferred from the .
. General Fund to fully fund the offsets, the amount of the offsets may .
. be reduced; .
. . Whereas, pursuant to such a determination, on June 20, .
. 2003. the Director of Finance acted to raise the car tax, reinstate the .
full vehicle license fee, eliminate the offset and relieve the General
. Fund of the obligation to fully fund the offset; .
. Whereas, the Department of Finance has general powers .
. of supervision over all matters conceming the financial and business .
. policies of the State and at the instance of the Govemor, shall institute .
. or cause tha institution of such investigations and proceedings as It .
deems proper to conserve the rights and interests of the State;
.. Whereas, because at the time the offset was eliminated. .
the Director of Finance did not provide priority for the vehicle license .
. fee offset over other state obligations of equal legal entitlement. and .
. did not take into account funds available to the state through .
. borrowing, the Director's determination was in error. not a reasonable .
interpretation of the statute and the circumstances required by section
. 10754 were not met: .
. Whereas, it is in the interest of all Californians to control .
. government spending and avoid unnecessary taxation; .
. Whereas, raising the car tax should only be a measure of .
. last resort to relieve the General Fund of the responsibility for .
. payments to local government when absolutely necessary due to dire .
. economic and budgetary conditions; .
. Whar.... due consideration of the priority and importance .
. of the obligation of the General Fund to offset the vehicle license fee .
will avoid the unnecessary taxation of Califomians, restrict
. unnecessary government spending and help restore California to fiscal .
. integrity and accountability, the offset to the vehicle license fee should .
. be restored. and the offset should be funded through an appropriation .
from the General Fund.
. NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER. .
. Governor of the Slate of California, by virtue of the power and authority .
. vested in me by tne Constitution and statutes of the State of California. .
. do heraby issue this order to become effective immediately: .
. 1. The letter issued by the Director of Finance on June 20. 2003. .
. to reinstate the full vehicle license fee and eliminate the offset .
from the State General Fund is rescinded and shall be of no
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Sent by: Governor's Press Office
916 323 7170j
11/17/2003 3:17PMj #410; Page 7/10
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. 2. The Department of Motor Vehicles shall reinstate the General .
. Fund offset to the vehicle license fee provided in Revenue .
and Taxation Code section 10754 (a)(3)(A) as soon as
. administratively feasible; .
. 3. The Department of Motor Vehicles is directed to refund to .
. taxpayers all overpayments of vehicle license fees paid since .
. the Director of Finance'S letter of June 20, 2003, in excess of .
. the amounts due after taking Into account the offset pnovided .
by Revenue and Taxation Code section 10754(a)(3)(A).
.. IT IS FURTHER ORDERED that the Department of Motor Vehicles -.
take any and all steps necessary to fully effectuate this order.
. Additionally, in carrying out the directivas set forth in this order, all .
. executive departments and agencias are directed to assist the .
. Department of Motor Vehicles to the extent permitted by law. .
. This order is not Intended to, and does not, create any right or benefit, .
substantive or pnocedural, enforceable at law or in equity, against the
. Stale of California, Its departments, agencies, or other entities, Its .
. officers or employees, or any other person. .
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. IN WITNESS WHEREOF I have .
. hereunto set my hand and caused .
the Great Seal of the State of
. California to be affixed this 17th day .
. 01 No r .
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. .
. ARNOLD SCHWARZENEG .
. Governor of California .
. ATTEST: ·
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= ry ~~ =
. t;'NC SHELLEY .
. Sacretary of State .
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~!. by: Governor's Press Office
916 323 7170j
1111712003 3:18PMj #410j Page 8110
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. EXECUTIVE DEPARTMENT .
= STATE OF CALIFORNIA =
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. EXECUTIVE ORDER $.2.03 .
. WHEREAS, State Government should be dedicated to provide certainty for .
. the regulated communities as well as meaningful and fair public participation in .
. government decisions which impact the cost of doing business in California; .
. WHEREAS, the express language of the Callfomla Administrative .
. Procedure Act declares that 'There has been an unprecedented growth in the number of .
. administrative regulations in recent years;' .
. WHEREAS, the increased costs associated with California's regulatory .
. environment have diminished competition in the nallonal and global marketplaces for the .
Slate's goods and SBlVices;
. .
. WHEREAS, the California Administrative Procedure Act requires that slale .
. Agencies proposing to adopt, amend, or repeal 8ny admlnlstrative regul8tion must .
assess the potential for economic impact on California business enterprises and
. individuals; .
. WHEREAS, the CalWornia Admlnistrative Procedure Act requires that all .
. adopted regulations be easily understandable, the least burdensome and effective .
. alternative, be consistent with underlying legislative authority and minimize the economic .
. impact to the regulated communities; .
. WHEREAS, the CaOfomia Administrative Procedure Act also provides thet .
. Agency policy enforced as if ~ were a regulation, but which has not been adopted,
amended or repealed subject to public notice and comment, is contrary to law and public .
. policy because it subverts open govemment; and .
. WHEREAS, with the onerous impact of over-regulation on the dally lives of .
. Callfotnians, it is time to reassess the system of Stale Government that is perceived to .
. .. work against businesses and inhibit growth and economic prosperity.. .
. NOW, THEREFORE,I, ARNOLD SCHWARZENEGGER, Governor of the .
. State of Califomia, by virtue of the power and authority vested in me by the COnstitution .
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Sent by: Governor's Press Office
91 B 323 7170;
11/17/2003 3:19PM; #410; Page 9/10
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. and statutes of the State of Calffomia, do hereby issue this order to become effective .
. immediately: .
. 1. Each Agency, depamnent, board. commission and office of the executive branch .
. (hereinafter referred to as 'Agency' or 'Agencies') shall: .
. a) Subject to any exceptions the Director of the Depamnent Finance allows .
. for emergency or other situations relating to health and safety, request, .
. pursuant to the California Administrative Procedure Act, the Immediate .
return of any proposed regulation, including emergency regulations, for
. final edoption, amendment, or repeal or other processing by the Office of .
. Administrative Law (OAL) for further review for a pertod not to exceed 180 .
days;
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. b) Subject to the exceptions descrtbed in paragraph 1 a) above, cease .
processing, pursuant to the California Administrative Procedure Act, any
. proposed lll9ulatory action, including emergency regulations. for further .
. review for a period not to exceed 180 days: .
. c) Pursuant to law and \he extent necessary to comply with this Executive .
. Order, suspend or postpone the effective date of any adopted, amended or .
. repealed regulations published in the California Regulatory Notice Register .
but not yet effective;
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. d) Reassess the regulatory impact on business of any proposed regulation for .
. adoptiOll, amendment or repeal descrtbed In paragraphs 1 a)-o), above, .
pursuant to California Government Code sectiOl111346.3 and submit a
. preliminary report to the Legal Affairs Secretary within 90 days of the date .
. of this Executive Order; and .
. e) Submit a report OIl all regulations adopted, amended or repealed by each .
. Agency since January 6, 1999 to the Legal Affairs Secretary within 90 days .
. of the dale of this Executive Order which specifically addresses the .
following:
. 1) The impact of the adopted. amended or repealed regulations on .
. California businesses as required by California Government Code .
section 11346.3;
. 2) The au\hortty for the adopted. amended, or repealed regulations .
. pursuanttoCal~orniaGovemmentCodesections 11342.1 and .
. 11342.2: and .
. 3) Conformity of the adopted. amended, or repealed regulations with .
. the criteria set forth in Califomia Government Code section 11349.1
of necessity. authority. clarity, consistency. reference and non. .
. duplication. .
. 2. Within 30 days of the date of this Executive Order, each Agency shaD assess and .
. identify any present issuance, utiliZation, enforcement or attempt at enforcement .
. of any guideline, crtterion. bulletin, manual, instruction. order, or standard of .
general applicatiOll which has not been adopted as a regula lion in potential
. violation of California Government Code section 11340.5(a) and submit its .
. findings to OAL pursuant to Cal~ornia Government Code section 11340.5(b). as .
. well as the Legal Affairs Secretary; .
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II 3, Upon submitting the findings of paragraph 2, above, to OAL and the Legal Affairs .
. Secretary, any Agency utilizing such guideline, criterion, bulletin, manual, II
instruction, order or standard of general application In the normal course of
. business until OAL makes ils determination to the Governor pursuant to California .
. Government Code section 11340.5(c) shall do so on an opinion-only basis which .
II will not carry the force of law; .
II 4. Within five working daY$ of the date of this Executive Order, the Director of OAL II
II shall submit to the Legal Affairs Secretary a list of aU regulallons pending 30 day .
review under California Government Code section 11349.3 as well as any
. emergency regulallons filed within the lasl 60 days with OAL pursuant to .
II california Government Code sections 11346.1 and 11349.6: .
. 5. The Director of the Office of Administrative Law shall, as soon as is practicable, .
appoint an advisory body consisting of no more than five (5) persons
II knowledgeable in regulatory matters to advise the Office of the Governor on how .
. the regulatory process can be improved in Callfomia. The term of the advisory .
. body shall expire on or before July 30, 2003: and .
. 6. Agency Secretaries and other Cabinet level positions will be responsible for .
ensuring compliance with the provisions of this Executive Order. For those
II departments that do not have Cabinet level representation, the Department of .
II Finance will be responsible for ensuring compliance with the provisions of this .
. Executive Order; and .
. 7, The regulatory relief described herein shall be acoornplished through existing .
II resources. .
. I FURTHER DIRECT that as soon as hereafter possible, this order shall be filed with the .
II Office of the Secretary of State and that widespread publicity and notice be given to this .
.. order .
. IN WITNESS WHEREOF I have hereunto set .
. my hand and caused the Great Seal of the .
. Slale of California to be ffixed this 17~ day of .
. Nove 3 .
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_. OLD SCHWARZENEGGER -.
Governor of California
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. ATTEST: .
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. . KEVIN SHELLEY .
. Secretary of state .
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