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CITY OF SAN BERNARDINO -
REQUEST FOR COUNCIL ~
From:
Rikke Van Johnson
Mayor Pro Tempore
Subject:
2009 League of California
Cities Legislative Action
Days Conference Update
Dept. Council Office
Date: April 27, 2009
MCC Date: May 4, 2009
Synopsis of Previous Council Action:
None
Recommended Motion:
To Receive and File.
~tJ~!M'HJ
Signature
Contact Person: Rikke Van Johnson. Mavor Pro Tempore
Phone:
5378
Supporting Data Attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. Descri Dtion)
Finance:
Council Notes:
Agenda Item No. Zq
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Balancing Our Budgets and Reviving Our Economy
". i LEAGUE
~ OF CALI FO~ lA
CITIES
2009 Legislative Action Days, April 15 & 16
The Issue: DeterioratinQ State and Local Financial Conditions:
,
California continues to suffer from a serious economic downturn as job losses mount Despite the adoption of
the state budget in February with significant cuts and revenue increases, the state budget deficit is growing
and the budget is out of balance. Moreover, the state has been forced to reduce its investments in already
approved infrastructure projects due to a cash crisis.
-'
Even if Propositions 1 A-F are approved by voters on May 19, the state's nonpartisan Legislative Analyst
Office (LAO) projects an $8 billion shortfall for the state for FY 2009-10. The LAO projects that the shortfall
would increase to $14 billion if the ballot measures fail. While there is a great deal of excitement and optimism
about the opportunities presented by federal stimulus funding, it is not a panacea for the ills of our economy
or budgets.
The forces wreaking havoc on state revenues and budgets are having the same effect locally. To balance last
year's budget, cities made numerous cuts, laid off staff, froze positions, reduced services, and implemented
reorganizations and other unpopular policies to address local deficits. Things are far worse this year, and
declining sales tax and property tax revenue means that cities will have no choice but to implement additional
cuts to make their FY 2009-10 budgets balance.
KEY MESSAGES
BalancinQ Our BudQets and RevivinQ Our Economv Has To Be Job #1: Budget stability at the state and
local levels is absolutely critical for economic stability. Both state and local governments need to continue
facing our budget challenges in a straightforward fashion. Residents expect leadership in this time of crisis.
Cities are making extremely tough budget decisions locally, and the state has the same responsibility.
Responsible Leadership Is a Must for Recoverv: City officials understand the challenge facing legislators
and the Governor in producing the budget last February. They met their obligation and did not shirk from
making the cuts and revenue increases to baiance the budget The League has joined with a broad coalition
of groups to support Props. 1A-F because the measures are the product of this bipartisan agreement and will
help the state avoid insolvency.
DO NOT TAKE LOCAL FUNDS - Balance The State BudQet With State Resources: The state must
continue on the path established in February of a balanced budget using the state's resources. Strong local
public safety and other services are critical to our economic recovery. Trying to borrow from local
government at this time would devastate local communities that are saddled with similar deficits and
does not solve the state budget problem. Just as local governments are forced to do, this is a time to take
a fresh look at state programs, identify efficiencies and consolidate operations where possible.
Maximize Economic Development Incentives: Both the state and local governments must focus on
programs that build infrastructure, create jobs and grow the economy. Allocating available state infrastructure
funds and maintaining local redevelopment funding is critical to the task of revitalizing California's economy.
We also encourage the state to also critically analyze the effectiveness of its recent housing tax credit
program to see if it should be expanded to existing housing and whether it is having the intended effect of
spurring economic activity with a net positive return for state revenues. Recovery of our housing industry is an
absolute must for the recovery of California's economy.
Demonstrate Restraint On New ProQrams, Mandates and Fees: Many well-intentioned bills have been
introduced that expand programs, impose new mandates, and require local governments to levy new fees to
pay for programs. This is NOT the year for bills that hamstring already struggling cities. Cities are in no
position to take on additional requirements and burdens - no matter how well intended. An economic crisis is
a time when it's necessary to cut back to the absolute bare minimum, not take on additional budget burdens.
We have laid off many staff, cut down to core services, and don't have the staff or capacity to implement new
ventures, and neither does the state. For Cities and the state: Ba/anclnQ Our BudQets and RevlvinQ Our
Economv Has To Be Job #11
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