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9A Page 4 State Mandate Funding Prop. 1A also expands definition of 'state mandate" to include the transfer of responsibility of a program for which the state previously had full or partial responsibility. Under Prop. 1A, the state is required to suspend any state mandate upon local govemment in any year the Legislature does not fully fund the mandate, including for all costs incurred in prior years. Emergency Temporary Suspension of Property Tax Pl'otection Beginning in FY 2008-09, the Legislature may temporarily suspend the property tax revenue protection provisions of Prop. 1A under certain very restrictive conditions. The Legislature may "borrow" not more than 8 percent of total property tax revenues (currently around $2 billion) if: 1. The Governor issues a proclamation of "severe fiscal hardship;" 2. The Legislature enacts an urgency statute suspending Prop. 1A property tax protection with two-thirds vote of each house; and 3. The Legislature enacts a Jaw providing for full repayment of the "borrowed funds" plus interest within three years The Legislature may not enact such a suspension more than twice in any 10-year period and may only do so if any previous borrowing under this provision has been repaid. Similar Protections for Prop. 42 Transportation Sales Tax in Prop. 1A of 2006 Prop. 42 of 2002 earmarked revenues from the state sales tax on gasoline for transportation purposes including local streets and roads. Under longstanding provisions of Prop. 42 and its implementing legislation, cities and counties received no allocations this year. In FY 2008-09, however, cities are due to receive nearly $300 million (allocated on a per capita basis), with a like amount allocated to counties, and another $300 million to public transportation. In Nov. 2006, the voters of California approved another Prop. 1A, this one providing protections for the Prop. 42 transportation sales taxes. Similar to the property tax protections in Prop. 1A of 2004, the 2006 measure provides that the Legislature may borrow revenues Prop. 42, but only under the same stipulations posted for Prop. 1A (2004) listed above. For more information on Prop. 42 and Prop. 1A (2004), visit www.californiaciMinance.com. Final Transit-Oriented Development Guidelines Released Last week, the California Department of Housing and Community Development (HCD) published final guidelines for its transit-oriented development program. The guidelines will be used for the application process and notice of funding availability. Applications are due March 7, 2008. Cities are encouraged to review the guidelines, which are available at www.hcd.ca.Qovlfa/tod/. Nominations Now Being Accepted for League City Managers Department Awards Do you have a colleague or city manager that has gone above and beyond the call of duty to contribute to their communities, or promoted the advancement of diversity within their community and workplace? If so, it's time to recognize them with a nomination for the 2008 John H. Nail Memorial Award or the 2008 Award for the Advancement of Diverse Communities. The John H. Nail Memorial Award was created by the League of California Cities City Managers Department in honor and memory of a highly regarded city manager and individual. This award recognizes local government administrative professionals who are serving as municipal assistants (regardless of position or title) and have contributed significantly to their communities. 4