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Ø4--4 DETAILS from page 3.............................................. new local transportation sales tax measures," but states that there is no proposal to change two- thirds vote requirements that apply to these local funding measures. Existing League policy sup- ports changes in state law that would make it possible for cities to pass local revenue mea- sures with a simple majority vote. It is worth noting the Strategic Growth Plan allocates about 55 percent of new bond funds to K-12 and higher education needs - measures that can now be passed at the local level with 55 percent voter support, rather than the two-thirds threshold required for local government revenue measures. No Funding for Housing, or Housing- Related Transportation Projects. The proposal would fund environmental improvements at ports, highway improvements, expanded rail and transit and other projects. None of projects identified appear to specifically address transit and trans- portation issues relating to the state's smart growth goals, involving infill housing or the means to address the jobs-housing balance. Additionally, the Strategic Growth Plan does not include funding that would address the state's urgent need for more housing, and particularly more affordable housing. Water and Flood Control Cities are heartened by the governor's pro- posal to upgrade the state's flood control infra- structure - an issue of statewide importance. After the recent storms in California, it is clear that much needs to be done both at the state and local levels. While current focus has been on levee systems, flood control is a statewide concern that includes not only levees but also flood control infrastructure for urban streams, creeks and rivers and alluvial fans. The plan proposes to invest $35 billion to "maintain and improve our levee and flood control system" and for water supply: $21 billion from existing federal and local funding sources, $9 billion from general obligation bonds, and a new revenue source, the Water Resources Investment Fund, which will generate approximately $5 billion over 10 years. Ofthe $35 billion total, $6 billion would be allocated to levees and flood protection ($2.5 billion from bonds), and $29 billion ($6.5 billion from bonds) to integrated regional water management projects. The proposal also states that the Administra- tion will pursue a package of reforms, including ACA 13 (Harman), which is supported by the League. This Administration-sponsored measure is critically needed for local governments to raise revenue to pay for flood and storm water infra- structure improvements and operating and main- tenance expenses. This will be especially important to any federal- state-local funding structure that contemplates a local match component. The League stands ready to work with the Administration and Legislature on this critically important issue. The California Resources Investment Fund: How Will It Work? As noted above, the Plan proposes a new fund with revenues derived from a new fee collected from each retail water purveyor. Two-thirds of the funds would be re- turned to locals to fund integrated regional water projects; the state would retain one-third of the revenues for statewide water resource manage- ment programs, including surface storage. League staff will be carefully analyzing the budget details after January 10 to determine more about this new funding proposal: more about how the fee would be collected and dispersed, and the specific types of projects it would fund. Our Mission Restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians. PAGE 4 - PRIORITY FOCUS January 6, 2006 - Issue #1 Visit the League's Official Website-www.cacities.org .u..d-" 0"'- "'.."--..-. ...---..-- ,,"0,....