AgdaPkt 2008-06-30 - Laserfiche WebLink

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8A Page 2 'Fireflghting Funding' Continued from Page 1... Gov. Arnold Schwarzenegger introduced his "Wildland Firefighting Initiative" with the release of his proposed FY 2008-09 budget in January. This policy (which has been changed) would have placed a surcharge on all residential and commercial property insurance policies statewide to fund additional firefighting staff, equipment, and other resources, based on recommendations from the Governor's Blue Ribbon Fire Commission. The 1.25 percent property insurance surcharge his initiative would have assessed was expected to generate $104.9 million in FY 2008-09. This money would have funded programs for the California Department of Fire and Forestry Protection (CaIFire), the Office of Emergency Services (OES) and the National Guard (Guard). The Legislative Analysts' Office (LAO) alternative budget plan for FY 2008-09 rejected the "Wildland Firefighting Initiative" and instead put forth its own plan for funding, by assessing a fee on properties within state responsibility areas (SRA). These are primarily privately owned timber1ands, rangelands, and Watersheds with minimal housing density where the state maintains firefightin9 responsibilities. The LAO recommended a property fee with an assessment structure to cover 50 percent of the state's General Fund baseline cost in the SRAs. However, it would be up to the Legislature to determine who should pay this fee and at what level. The property insurance surcharge proposal was renamed the "Emergency Response Initiative" in the Governor's May budget revise. It was also restructured to place different surcharge levels on the property's insurance policy, based on its fire hazard risk. Under the Governor's new proposal, a 1.40 percent surcharge would be assessed for properties in high-hazard zones, resulting in an approximate cost of $12.60 per property insured. For low- hazard zones, a 0.75 percent surcharge would be assessed, resulting in an approximate cost of $6.75 per property insured. The combination of the lower surcharge and delayed implementation would result in $69.3 million to fund CalFire, OES and Guard programs. The LAO also rejected this proposal and maintained its recommendation for SRA fee assessments on property owners. State legislators are also looking for solutions to further fund wildland firefighting services and resources, including Sen. Christie Kehoe (D-San Diego), who authored SB 1617, which would require the State Board of Forestry and Fire Protection to establish a fire prevention fee of $50 to be imposed on structures with property tax payments within SRAs. It is not clear yet which firefighting funding strategies will move forward in the Legislature and FY 2008-09 state budget as budget related discussions continue. 'Budget Refonn Proposal' Continued from Page 1... The Republican leaders proposed to enact an annual spending limit on government growth based on a formula that combines popUlation growth and inflation in California. Once the economy recovers, revenues the state collects beyond what it can spend according to the formula would be reserved for future budget shortfall years. In their opinion piece, Cogdill and Villines point to California's recent 5 percent inflation and population growth rates. They say that if their proposal was in effect a few years ago, the Legislature could have continued stable funding for state programs even this year when revenues have fallen so short. The full Budget Committee met this week to continue working on a budget bill. The Committee missed its June 15 Constitutional deadline to pass a budget bill out of both the Assembly and Senate. The League will continue to monitor developments with the budget and provide updates through Priority Focus and online at www.cacities.orQ. 2