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<br />BUDGET FUNDS LOCAL TRANSPORTATION, PUBLIC SA FEY, MANDATES
<br />
<br />The newly passed state budget contains good news for California cities,
<br />
<br />California cities have good reason to thank their legislators and Gov. Arnold Schwarzenegger for
<br />passing a budget that will provide funds for public safety, reimbursement of state mandated
<br />programs, and continued repairs and maintenance of local streets and roads,
<br />
<br />It is a budget that respects the historic partnership between the state and local governments, and
<br />the important role that local governments play in providing essential services to every Californian.
<br />The full implementation of Proposition 1 A begins July 1. This historic agreement ended the ability
<br />of the state to shift local funds to the state. As part of the agreement, that measure also required
<br />cities, counties, special districts and redevelopment agencies to collectively shift a total of $2.6
<br />billion to the state general fund over the past two years. That fund shift wîIJ now end, leaving cities
<br />with $350 million in local funds that can be allocated for local purposes.
<br />
<br />The Legislature and the Governor are to be commended for their leadership in bringing in a
<br />budget that is prior to the fiscal year deadline, and which reflects the kind of hi-partisan
<br />cooperation that Californians clearly expect and desire from their state representatives.
<br />The Governor is expected to sign the budget on Friday.
<br />
<br />Key Issues for Cities. The "big four" issues of importance to cities - Proposition 42
<br />transportation funds, booking fee subventions, reimbursement of state mandated programs and
<br />COPS funding - were all addressed in this budget. Here is a summary of those issues.
<br />
<br />$424 million in Proposition 42, Transportation Funds. Prop. 42 will be fully funded for FY
<br />2006-07 at $1.42 billion. While local streets and roads will not receive funding from this
<br />appropriation, $424 million to maintain this local infrastructure will be included in an additional
<br />appropriation of $1.415 billion, provided as early repayment of amounts borrowed from Prop. 42
<br />by the state in FY 2003-04 and FY 2004-05, The State Controller's Office anticipates that the
<br />repayment allocations to local governments will be released in two consecutive payments, with
<br />the first allocation approximately 10 working days into the fiscal year.
<br />
<br />Proposition 42 Appropriations in FY 2006.07 Budget
<br />
<br />.' --. ."'.
<br />12006-07 Prop. 42 ¡Early Repayment ,Early Repayment:
<br />; ¡ ! !Total
<br />!Transfer 12004-05 '2003-04 .
<br />
<br />'--- .~~~.~~-.~i ------.- ......1 ~~._>_..__...._~.; --. .,........ .... .,...... .---. L..-_...--. ----.....J
<br />¡TCRF 1$678 1$315 1- :$993 !
<br />~TIP~'~ 1$594 1$232 j$192 $1,Ö1!3~:
<br />.. ..
<br />¡Cö~í""'lc¡ti~;- """'1::--""""""""""""'/$1'16"'--"'--'-' "'-'-$96'-""""'-""""~212""""""""'-""'-'
<br />\Streets ¡ --i-_. i '-~----i
<br />~nd !Counties ¡ $116 '$96 :$212
<br />[Roads: .
<br />
<br />[.....--........"",.."J......_._...._-J--_......__.....~_..._......L......---....................-...-........,;......................... .....".. .... """"""'-""""'--"'-'--"-"-;
<br />,PTA 1$148 1$116 ,$96 j$360
<br />
<br />:ï~têr~t~--"-~""-"----'--'-'--'j~'--- ;$15 "~'-"-'" $46~--"'--
<br />. , i . .
<br />¡-....,..............--............-.........-..."........;..............__..._..--._-~...-..;._........_>o........_...._. "",-"""--~---"""""""",-,,-,,,,-,,--,-,-,""""" ,.--..-...............-...;
<br />(Total [$1,420 $920 '$495 ~2,835
<br />:--..-- j --_..__._~~-.- --'-"
<br />,
<br />
<br />..------_.
<br />
<br />"._..._~-
<br />!
<br />
<br />i
<br />;
<br />Kin millions)
<br />
<br />:Comments:
<br />i
<br />
<br />¡. The $25 million in interest will be allocated proportionately to the various accounts. The State
<br />!controller will configure the allocation of the interest, which is estimated to be about $25 million in ¡
<br />'additional total funds. ..
<br />
<br />. .
<br />...-....-----..- "'---'---'--'---~"""'- ---"'..".._"---- - ".._._----~-_.._._-,..~._-_.__..,,--_._----_._~
<br />
<br />9A
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