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8A Page 4 BUDGET UPDATE from page 1 ........................................ Budget Discussions Continue including undocumented immigrants, although he believes that the state cannot afford to do this It is uncertain when a budget package will be today. ) ready for a vote, but discussions have elevated to the Big 5 (the Govemor, Senate President Pro Tem Proposition 42 Repayment and Spillover Don Perata, Senate Minority leader Dick Revenues Ackerman, Assembly Speaker Fabian Nunez, and Assembly Minority Leader George Plescia), indi- an Saturday, June 10, the Budget Conference eating that final details are being negotiated. Committee met to act on open budget items, including Prop. 42 repayment and allocation of Issues at Odds "spillover" revenues. Debt Repayment. Democrats want to put $1 In a compromise between Senate and Assem- billion of the state's windfall into a reserve fund to bly proposals, the conference committee voted 4- decide how to spend It at a later time. Republi- 2 (Republicans voting no) to fund Prop. -42 repay- cans would like to see the $1 billion used to pay ment at $660 million, with full funding for repay- down debt as Gov. Arnold Schwarzenegger has ment to local streets and roads. The compromise proposed. represents a halfway point between the Senate's proposal of $460 million and the Assembly's Booking Fees. Discussions regarding the proposal of $920 minion. The $660 million is Governor's proposal on booking fees are under- allocated as follows: way with legislative leadership to include the proposed sotution as part of the budget package. . $245 million for the State Transportation The Governor's proposal continuously appropri- Improvement Plan ates $40 million from the state budget to offset . $245 for local streets and roads $122 fees most counties currently charge cities for million to the Public Transit Account booking suspects in to county jails. . $48 million to the Traffic Congestion Relief Program (this is a reduction over the The proposal represents a historic collabora- governor's proposal, but these projects tion between city police chiefs and county sheriffs will receive a large portion [$678 million] to address the booking fee issue and offer a from the regular Prop. 42 FY 2006-07 solution to this ongoing debate. Visit allocation-enough the Legislature bel- www.cacities.orglrev~!ldtax for additional details ieves, to keep these projects moving on the booking fee proposal. without delay.) At the time of this writing, the League was The conference committee also acted on the aware of a proposal to possibly include $40 million spillover revenues (see www.cacities.ora/ for this budget year only to reimburse cities that revandtax for information on spillover funds) pay booking fees. This would enable negotiations rejecting the Governor's proposal to direct to continue on the Governor's proposal for a loog- spillover to the debt service on the transportation term solution without holding up the budget. bond and allocated the $343 million as follows: Health Insurance for Children. Republicans . $20 million for farmworker transportation are objecting to efforts to expand health insurance . $13 million for high speed rail coverage to aU California children, including un- . $248 million for the state Transit Account documented immigrants. (Note: Gov. (for transit operating expenses) Schwarzenegger has weighed in support of . $62 million for the Public Transit Account funding health insurance for all California children, (for transit capital projects) PAGE" - PRIORfTY FOCUS VISit the Lugue's OffIcial Webslte--www.cacities.org June 16, 2006 - Issue IN ,~"""",~""_,,"'"M'~^~'M'.W"~.'...~~,~'_,,,",_'___,_,,,,__...-___.c____