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8A STATE BUDGET from page 4 <m 1< Oil <; Ii> .. .. .. .. ~. $ ~, . ll< " .. . <III !ll .. .. " I; .. " ~ .. It .. .. II .. .. .... .. .. ... 110 .. .. Page e . $14.6 million for the Urban Storm Water Grant Program $8.8 million for the Clean Beaches Grant Program $6.1 million for basin and land use planning activities Flood Control: $629.9 million from Proposition 1 E, Proposition 84, previously approved bond funds and funding contained in AB 142 (2006) to allow the continued repair of critical levee erosion sites and continue the deveiopment of the state's strategic fiood management capability. Other Budoet Issues of Concern for Cities: State Mandates: The FY 2006-07 budget contained two years of mandate repayments owed to local government that were deferred by the state prior to FY 2004-05 ($83 million and $87 million, respectively for the first and second year repayments of the 15-year debt). The Governor's proposed budget for FY 2007 -08 does not include any repayments nor does it provide funding for mandates that will be incurred by local governments in 2007-08. The budget instead proposes to defer budgeting for and paying these claims until 2008-2009. The Governor also proposed significant reform of the mandate reimbursement process by having the State Department of Finance work with local governments up front to determine reimbursement amounts in order to simplify the process and reduce the current backlog of unfunded mandate claims before the Commission on State Man- dates. In additiona, the Administration proposed to repeal the Local Government Employment Rela- tions mandate created by Chapter 901, Statutes of 2000, which is a law that placed local govern- ments under the State Public Employment Rela- tions Board (PERB). Under this law, local govern- ments (cities, counties and special districts) have to resolve unfair labor practice charges under the PERB. Prior to that, these disputes were resolved locally or by the courts under the collective bar- gaining law for local government - the Meyers, Milias Brown Act. State, school, higher education employees were already under PERB. This proposal is likely to be controversial. Telecomm unications: The budget includes $950,000 and 10.3 positions for the Public Utilities Commission (PUG) to implement the Digital Infrastructure and Video Competition Act, contained in AB 2987 (Nunez). State Debt Repayment: Proposition 57, the Economic Recovery Bond Act, authorized the state to issue Economic Recovery Bonds (ERBs) and established the "triple flip" mechanism for the repayment of those bonds. The triple flip uses a quarter-cent of the local sales and use tax for debt service, replacing that money to cities and counties with additional property tax. Due to prepayment efforts and because not all of the ERB capacity was used, the State Depart- ment of Finance estimates that the current ERBs will be retired by January 2010, and the triple flip will end. The Governor further proposes an additional repayment of $595 million, which will enable the ERBs to be paid off by August 2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . : lLG 'NEWSWIRE' : . . . . : To c.nt:!cK out ILGfs latestapfiV1fie$, : . please"i$jt\'v~.ca-rl~.or~lhewswite.by · : cliCking on thisllnkorpastihg the ad.. : : dress to your broWser. · . . . . . . . .- . . . . . . . . . . . . . . . . . . . . . .' . . . . .- . Visit the League's Official Websitenwww.cacities.org PRIORITY FOCUS. PAGE 5 January 12, 2007 . Issue #2