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<br />8A <br />Page 6 <br /> <br />'Budget' Continued from Page 1... <br /> <br />The PPIC survey examined a variety of issues at the start of the fall campaign season including <br />voters' economic outlook. The survey found that 84 percent of voters think the budget stalemate <br />is a major problem. According to PPIC, this is the highest level of dissatisfaction on this issue <br />since May 2004. Along with finding that only 4 percent of likely voters say borrowing should be <br />used to close the budget, the survey also found that 44 percent believe that a combination of cuts <br />and taxes are the solution. <br /> <br />This survey reinforces the message that city officials have been driving home for weeks - <br />borrowing local government, transportation or redevelopment funds to close the budget gap is <br />irresponsible. They've been participating in news conferences and other events to cut up a mock <br />"Bank of Local Government Credit Card" to reinforce this message. To date. close to 140 city <br />councils have passed resolutions against borrowing. <br /> <br />Many cities are struggling with their own budgets given the tough economy which has driven <br />down property tax and sales tax revenues as energy costs climb. If the state now borrows local <br />revenues to solve its budget shortfalls, these cities will be forced to enact additional cuts to <br />absorb the hit. <br /> <br />Education Coalition Joins Fight Against Borrowing <br /> <br />The Education Coalition sent a floor alert to the Legislature on Aug. 22 warning against <br />borrowing. The educators contend in their alert that borrowing to close the budget would actuaUy <br />hurt education. Revenues generated through a tax increase mean more money for education <br />through Proposition 98, but if the state uses borrowing to close the gap, education won't gain. In <br />addition, they stress that using borrowing for the FY 2008-09 budget will actually increase the <br />probability that education funding will be cut in FY 2009-10. <br /> <br />Proposed Shift of Redevelopment Is Bad for Cities and California as a Whole <br /> <br />The budget proposal Gov. Arnold Schwarzenegger introduced last Wednesday, Aug. 22, does <br />not include borrowing local government or transportation funds, however it does contain a three <br />year shift of $675 million of redevelopment funds ($225 million annually). This shift is of great <br />concern to cities as this amounts to a loss of critical local funds. The League is working with the <br />California Redevelopment Association to bring attention to the fact that this shift is fraught with <br />problems. <br /> <br />The league's executive committee, led by President Jim Madaffer, city council president pro tem. <br />San Diego and 1 st Vice-President Heather Fargo, mayor, Sacramento, met with the Governor on <br />Tuesday, Aug. 26 to discuss the budget. The league's officers once again commended the <br />Governor for continuing to stand firm against borrowing but also communicated the devastating <br />impact his proposed shift of redevelopment funds would have on California cities. <br /> <br />Redevelopment funds are critical to both stimulating the economy and helping cities and the state <br />as a whole combat global warming - two top priorities for California. Annually, redevelopment <br />projects generate 310,000 good"paying jobs, provide a total of $32 billion in economic activity and <br />generate $1.6 billion in state and local taxes. <br /> <br />With the passage of AB 32 in 2006, California set out on a path to drastically reduce greenhouse <br />gas (GHG) emissions to fight global warming. Redevelopment funds provide funding for projects <br />that incorporate green building practices, encourage infill, transit oriented development and <br />discourage sprawl. The League supported SB 375 (Steinberg), a bill which mandates significant <br />changes for growth and development to meet the goals laid out in AB 32. The goal of Sen. <br />Steinberg's (D-Sacramento) legislation is to provide incentives to cities to do infill development <br />with access to transit to help reduce the number of vehicle miles residents travel. <br /> <br />Unconstitutional Triple-Flip Proposal Emerges <br /> <br />In a sign of growing desperation (and lack of familiarity with Prop. 1A). it has been reported that a <br />stealth proposal is being floated to effectively steal the property tax payments that currently go to <br /> <br />2 <br />