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<br />PROP. 42 PAYBACK FUNDS: HOW <br />SHOULD CITIES BUDGET? <br /> <br />With last week's release of the May Revise to <br />the budget, Gov. Schwarzenegger is continuing to <br />propose, as he did in January, that the FY 2006-07 <br />budget include $920 million to pay back loans the <br />state took from Proposition 42 transportation <br />funding in FY 2003-04. This amount includes <br />$254 million for local streets and roads (half for <br />cities, half for counties), roughly the same level of <br />funding as in the current FY 2005-06 year. <br /> <br />Many city managers and finance officers are <br />wondering if they should build their city's share of <br />the payback into their own city budget proposals. <br /> <br />The conservative answer is "no," because at <br />this time, the proposal is simply that - a proposal. <br />Absent this repayment of previously suspended <br />Proposition 42 funds, the Transportation Conges- <br />tion Relief Program in current law (Revenue and <br />Taxation Code Sec. 7104(c» would be provide no <br />Proposition 42 appropriation to cities or counties in <br />FY 2006-07 to FY 2007-08. <br /> <br />A clearer (and perhaps rosier) answer to this <br />question will be available in a few weeks, when the <br />Legislature has acted on the Governor's pro- <br />posal. <br /> <br />FIND A BILL, LEGISLATORS, LEG <br /> <br />COMMITIEE - OR ASK LEG STAFF <br /> <br />Visit (and bookmark!) the League's <br />Legislative Resources page <br />(www.cacities.org/learesources). You'll find <br />a roster and contact information for the <br />League's legislative staff; the online Bill <br />Search program, background materials on <br />lobbying your legislators, and more. <br /> <br />LEG ACTION DAYS from page 1 . . . . . . . <br /> <br />The Governor hailed the bond as a great <br />success, and a shining example of what the <br />Legislature can accomplish when working to- <br />gether. It will appear on the November statewide <br />ballot as Proposition 1C. <br /> <br />"The bond package was passed not because <br />of me, but all of you," the Governor told the packed <br />ballroom of local government officials, including <br />members of the League's board of directors. <br />"There was no 'Republican way,' no 'Democrat <br />way,' we did it the California way. This was a huge <br />victory for California." <br /> <br />The League's Legislative Action Days is an <br />annual event, where city officials come to the <br />State Capitol to lobby their legislators on League <br />priority issues. This year's program featured a <br />variety of speakers from the League, State Legis- <br />lature, and state agencies. <br /> <br />Governor, Legislators Receive League <br />Awards <br /> <br />Following the Governor's speech, League First <br />Vice President Maria Alegria, Mayor Pro Tem in the <br />city of Pinole, presented the Governor with a <br />commemorative shovel as an award recognizing <br />his work on the bi-partisan infrastructure invest- <br />ment package. Also on hand to receive the <br />awards were Senate President Pro Tempore Don <br />Perata, Sen. Dick Ackerman, Sen. Bob Dutton, <br />Sen. Alan Lowenthal and Sen. Tom Torlakson. <br /> <br />The commemorative shovels were intended to <br />signify the infrastructure work that will be under- <br />taken if the housing and other infrastructure bonds <br />are passed by voters in November. Also honored, <br />but not present to accept the awards, are Assem- <br />bly Speaker Fabian Núñez and Assembly Minority <br />Leader George Plescia. <br /> <br />Telecommunications Discussed by Levine, <br />Diversity Caucus Members <br /> <br />The Governor's remarks came at the end of a <br />program that also included a discussion of tele- <br />communications reform. <br /> <br />Continued on Page 3 <br /> <br />PAGE 2 - PRIORITY FOCUS <br />May 19, 2006 - Issue #20 <br /> <br />Visit the League's Official Website--www.cacities.org <br /> <br />< <~«-. . .__.<OM_m'~< <.~..._..._-_.~--, __._H._, ----' ..,---..--. ...,.', <br />