AgdaPkt 2005-06-27 - Laserfiche WebLink

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;7'A-~ BUDGET UPDATE from page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Democrats portrayed SB 77 as "the governor's Mandates for reconsideration. , budgee suggesting that it is only 2 percent different Open Meetings Act mandate. Makes than his May revision proposal. Republicans changes to elements of the law to allow any stat- countered by suggesting that the increased spend- utes of law that are defined as necessary to 8imple- ing above the May revise has just added more to ment" a voter-approved proposition to be exempt the state's ongoing, operating deficit. from " state reimbursement as a mandate, and subsequently makes changes to the procedures under the Open Meetings Act that are currently a reimbursable mandate that define them as neces- sary to implement Proposition 59 as passed by the voters last November. The state indicates that this removes future obligations of the state to reimburse locals for these procedures (language and full details on mandate actions is not yet available. We will provide updates to members on these items in the future). . Mandates. Fully fund many reimbursable mandates for 04-05 claims (exact list is not yet available). Provides 05-06 funding for some man- dates and based funding on estimated claims less 25 percent to account for an increase in audits and subsequent savings. Defers funding on other reimbursable mandates. The full list of mandates and funding levels are available on the League's website. Republican Assembly members also expressed concerns about the budget conference committee's decision to eliminate the early repayment of one- half of the VLF gap loan to local governments. They talked about the impact the action would have on front line public safety, how it adds to the oper- ating budget next year, and how it "turns our back" on local governments. Instead of the early repay- ment of close to $600 million, the conference committee set-aside $25 million that could be used to help out cities and counties who have a 8hard- ship" without the early repayment of the VLF gap loan, as well as cities and special districts experi- encing 8hardship" due to the lack of booking fee subventions. The Department of Finance is charged with determining what 8hardship" means and who qualifies. That process has not yet begun - we will inform members when details become available, Following the budget vote, Assembly members discussed AB 6 - a bill that would raise the tax rates on upper income taxpayers and which, Democrats hoped, would help fund education into the future (although it is currently written to benefit the state general fund), The Assembly remains on the call of the chair through the weekend with their next session sched- uled for noon Monday. The Senate will be ready to meet upon the call of the chair on Monday. Other items contained in the currently proposed budget include: Proposition 42. Full funding of Proposition 42 (transportation) in the 2005-06 fiscal year, including $254 million for local streets and roads. ERAF shift. $1.3 billion ERAF shift from cities, counties, special districts and redevelopment associations to the state as agreed to in the Propo- sition 1 A agreement. Police Officer's Bill of Rights (POBAR) mandate. Removes recommended funding of the Police Officer's Bill of Rights mandate and refers the mandate back to the Commission on State THE LEAGUE'S POSITION The League appreciates and supports the Legislature's commitment to fully fund Prop. 42, providing sorely needed help for locals for street and road maintenance. While the League supports the Budget Confer- ence Committee's recommendation to allocate $25 million for VLF and booking fee hardship cases, we oppose the committee's elimination of the early repayment of half of the 2003 VLF gap loan. These funds would help pay for much-needed services in cities that are still recovering from the recent economic downturn - and which in both the current fiscal year and next year will contribute a portion of the $350 million ($700 million total) that all California cities will contribute to help the state resolve its budget problems. The state is obligated by statute to repay the full $1.1 billion amount of the VLF gap loan in August 2006. The League will continue to work for this repayment. PAGE 2IPRIORITY FOCUS Visit the League's Official Websiteuwww.cacities.org