AgdaPkt 2005-09-26 - Laserfiche WebLink

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9�-.z Legislative Update Continued from Page 1... With the Legislature now in recess until January 4, it is clear that the reform agenda first proposed by Gov. Arnold Schwarzenegger last January has shifted entirely to the November special election, where several of the govemor's surviving reform proposals will appear before the voters as: • Proposition 74 (teacher tenure); • Proposition 76 (state spending limit); and • Proposition 77 (legislative and congressional redistricting). Another measure aimed at reforming the system and put on the balfot by supporters of the governor is Proposition 75 (employee union dues). Democratic leaders asserted in recent weeks that one reason it was difficult to reach agreement in the Legislature on reform proposals was what they characterized as the °gun at our heads" approach taken by the govemor in calling for and supporting the special November election, rather than bargaining with �egislators. While the governor did attempt to move budget and pension reform proposals through the Legislature, he was met with strong resistance to those efforts. Whether or not one agrees with this analysis, the fact remains that, after 8-1/2 months of legislative session, there is little progress to report on many key issues. (See "Key Policy Issues for Cities: What Happened?" for a summary of several key issues of concern to cities.) Real Action Occurred with State Budget. With the legislative session now over for the year, we can see that the most significant impact on cities this year occurred in the state budget — and the news was very good: • Proposition 1A — the measure we all worked so hard to pass last year — succeeded in protecting local revenues from new state raids. . VLF Gap Loan Paid Early. The govemor and the Legislature surprised and pleased local officials by repaying the vehicle license fee (VLF) gap loan from 2003 in its entirety — and one year earlier than expected. • Proposition 42 Transportation Funding. The govemor proposed, and the Legislature passed, full funding of Proposition 42 transportation funding this year, making $254 million in revenue from the sales tax on gasoline available for local street and road repairs. This much- needed influx of funds for infrastructure projects was a welcome departure from the previous two years, when Prop 42 funds were used to help shore up the state general fund. The League will work with the Califomia State Association of Counties (CSAC) and others in 2006 to encourage continued Prop 42 funding for transportation projects, as the voters intended when they passed this measure in 2002. The 2006-07 fiscal year looks even better for cities and other local govemments, as the $2.6 billion ($1.3 billion a year for each of two years) Prop 1A shift of revenue from local govemments to the state will end. The end of this transfer of funds to the state means that $350 million in much-needed funding will remain available to help cities meet the needs of the state's expanding population — 80 percent of whom become city residents. 2