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GOVERNOR'S SPENDING CUTS PLAN TO EXCEED $5 BIllION <br /> <br /> Governor Davis is expected to unveil today a list of current year spending reductions that will be "substantially <br /> higher" than the $5B target announced earlier--possibly as high as $10 billion. T~e plan will be released in prepara- <br /> tion for the December § Special Session the Governor called to address the budget deficit, estimated to exceed <br /> $21.3 B through fiscal year 2003-04. Davis has challenged the legislature to act on his proposals by the end of <br /> January. <br /> <br /> Legislators, who were officially sworn in December 2, are being welcomed into office with an uncharacteris- <br /> tic flurry of activity due to the impending budget crisis. While specific proposals have not yet materialized, it's <br /> clear that everything will be on the table for the discussion on closing the budget gap. <br /> <br /> Many legislators have already commented on th~ numbers of local elected officials who have spoken to them <br /> about preserving local services. Returning the Vehicle License Fee (VLF) to previous levels, as was guaranteed in <br /> law when the VLF was originally reduced, is a key point in the local message. This move would eliminate an <br /> annual State General Fund obligation currently totaling $4B, by relieving the state of its obligation to backfill the <br />._ VLF fees to local governments. <br /> <br /> Local officials need to encourage their legislators to act now on restoring the VLF offset. Every day that <br /> passes without legislature action delays state savings. City officials should contact their legislators about this <br /> issue, and emphasize the importance of preserving local services. (See State Budget Alert article, page 2.) <br /> <br /> The budget discussions this year will be unprecedented in their magnitude and it's critical that every local <br /> official rise to the occasion and get actively involved in the debate. For further questions about the budget, <br /> please contact Jean Korinke, League Legislative Representative,_ikorinke@cacities.org. <br /> <br /> Page 2 · State Budget Alert <br /> · The League's New Advocacy Center: "Just Do It!" <br /> Burton Re-introduces Bill on Native American Sacred Places <br /> Page 3 · Three Cities Lead The Way For SOS Fund Development <br /> League Housing Opportunities Task Force: First Meeting December 13 <br /> <br /> <br />