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- A Veto is Critical The bill sought to give the Director of the Depart- ment of Finance, in consultation with the state The issues raised by SB 905 are sedcos. Propo- co~uiler, the authority to determine when insufficient nerds w~l argue that any needed c~Tec~ can be funds were available for the state's VLF bacldill wonted out next year. It is o~' c¢~ention ~at on January obligation, and subsequently "ti'igger" a reinstate- 1,2003, this law will require local agencies to eliminatement in fees as allowed by current law (when there many payro~ deduc~on programs that have been in are insufficient funds). As the measure was deemed p,bce for management and rank-and-file employees for to simply clarify existing law, it had no identified years. General Fund cost, allowing it to be amended, moved out of Senate Appropriations without a To correct this problem alter Janua,'y 1=~ wilt mean at hearing, and passed by a simple majority vote. will be great dis~, ~ and ik~ sorne anger *~ Senate Republicans were livid: ifadopted, the caused by this legislation, it is our ~'uu~ recommenda- bill would remove the minority Republicans' leverage ~n that the Governor veto this legislation and al~w the over a major potential revenue increase, by authoriz- parties to negotiate a solution in an open and public lng the increase to occur by adminisbatJve fiat, rather manner next session. There is no urgent or compelling than by the two-thirds vote of the legislature required reason why this legisla'don has to be signed this year. for all fiscal bills. Please contact the Governor's office ASAP When the Senate passed AB 1105, Assembly and ask for a VETO of both SB 905 and AB 12431 Republicans reacted immediately, indicating their intention to file a lawsuit if AB 1105 moved ahead. The measure died that night, as it was never taken MEMBERSHIP TO C0NSIBER 10 up in the Assembly. - RESOLUTIONS AT ANNUAL CONFERENCE But everyone involved with the budget knows that the battle for VLF is not over. Current estimates put The League's policy committees last next year's budget deficit at $10 billion, and possibly month reviewed and adopted preliminary higher, suggesting that the pressure to reduce the recommendations on ten resolutions, including two by-law amendments. The committees will VLF backfill is only deferred by a few months. meet again October 2 at the League's Annual President Pro Tempore of tt~ Senate John Conference in Long Beach to adopt final Burton (San Francisco) said as much in a press recommendations. The General Resolutions Committee will consider those recommenda- conference on Tuesday, September 3, telling report- tions at 10:15 a.m. on Friday, October 4. ers that the Democrats plan to call a Special Ses- sion al[er the November elections, reintroduce the Resolutions approved by Resolutions Commit- tee will be taken up at 10:15 in the Conference provisions of AB 1105 in a new bill, and pass it on a Business Session during the General Assem- simple majority vote. The Special Session would allow the measure to go into effect as soon as 90 bly meeting on October 5. days alter signed by the Govemor. Copies of the Annual Conference Resolu- While this action would likely to put to rest local tions packet were mailed to all cities last week. They are also found on the League's website governments' deep concerns about continuing to receive VLF funds, it would also likely to infuriate at: http://www.cacities.org/2002resolutions. Republicans. It will also contribute to what is already For more information about the League's resolutions process, please contact Linda expected to be another year of difficult budg~ Hicks at 916/658-8224. negotiations. Visit the League's Official Web Site.-www.cacities.org PRIORITY FOCUS/PAGE 7