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BUDGET from page 1 ................................................, . The fina! report included: the Conference Committee's tax package that had been passed by the Senate, and instead demanding further cuts. Booking Fees $38.2 million COPS $121.3 million School Finance IVle~_ee I~ Without Super-Majority Juvenile Justice $111 million Williamson Act $ 28 million Vote Requirement Law Enf, Technology $18.5 million The other development over the weekend dealt with a Public Libraries $ 31.5 million (May Revise Level) school finance piece that was in dispute last week, The measure, SB 1830 (Peace -Chula Vista), contained a $1.7 billion revenue Two exceptions to this restoration trend included the shift boost to the budget deficit. An accounting mechanism was used of $75 million of tax increment from redevelopment agencies to to permit a shift of unexpended school revenue from the current the ERAF fund; and, the deferra~ of state mandate reimburse- fiscal year to the 2002-03 budget year. The shift had to occur merits totali~ $200 million. The redevelopment shift wes capped before midnight on June 30~ (the end of the fiscal year). Republi- at two years (despite some confusion on the Senate floor about cans withheld votes on the measure when it was heard on the the duration of the shift). Assembly floor and demanded $400 milIion for school equaliza- tion money as a coodition for their vote for SB 1830. After the Senate Passes Budget on Seturday Assembly floor debate, the Legislative Counsel (the Legislature's lawyer) opined that the revenue shift action neede~ o~ly a On Saturday, June 29, the Senate passed the budget bill and rn~ori~ vole f~rr~, not a two-thirds vote as originally the accompanying package of "trailer bills" needed for implemen- thought. With this opinion, both the Senate and Assembly tation. All 26 Democrats voted for the budget along with a lone Democrats passed a measure to capture the $1.7 billion for t~e Republican, Senator Maurice Johannessen (Redding), giving the 2002-03 budget year. Funding for school equalization - also legislation the needed two-thirds vote for passage. The Senate, in sought by the Republican caucus - were also identified but not long-standing tradition, recessed and canceled ,~; hearings for the enacted. week, It is unlikely that the Senate w~l, return: ~acramento until August 5~, unless there is a "deal to be made" w~th the Assembly. Future Prospects Uncertain The tax/revenue package for the budget includes the The resolution of the budget will depend entirely on the following: ability of legislative Democrats and Governor Davis to strike a deal with the Assembly Republican caucus; or, to persuade the Vehicle License Fee Partial Restoration $1,276 million four Republican votes necessary for passage that there is a good Cigarette Tax Increase (63 cents a pack) $ 650 million reason for them to vote for the budget. While city officials can de Net Operating Loss Suspension $1,200 million reasonably pleased with the proposed restoration of cuts to city Teacher Tax Credit Suspension $170 million programs, the budget debate is not over and may linger for quite Bank Bad Debt Conformity $ 285 million some time. High Risk Account Collecbons $145 million It remains to be seen if there is any movement in the TOTAL: $3,726 MILLION immediate future or if this is indeed a stalemate that lasts through the summer and into the fall. With the Senate in recess, there really is no one with whom the Assembly can negotiate over a Republicans Oppose Revenue Package, Urge Further Cuts new/altered budget package. If the stalemate continues much In the Assembly on Sunday, things didn't go quite as longer it becomes a public relations/media battle rather than a smoothly as they had in the Senate, The budget bill failed passage legislative battle. on a strict partisan basis, with Assembly Republicans opposing Our Mission Restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians. PAGE 2/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org