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9A Page 18 `BudgeY Continued from Page 1... The Governor had announced Tuesday afternoon that he would ve#o the budge#the Legislature passed early that moming on the grounds that it"kicked the can down the aliey"and did not provide responsible budget reform. in addition,the Govemor criticized the Legis(ature's proposal to withhold higher levels of state income tax ta raise$9.fi billion in revenues(in effect an interest- free flaat laan from taxpayers). �egislators threatened a veto override.The Governor countered with a promise to veto most of the Legislature's pending bills. In short, California's government appeared on the verge of ineltdown. The League issued a press statement Tuesday aftemoon communicating that the initia( legisfative budget, whicE►some legislators described as a"Ponzi scheme,"underscared the drastic need for comprehensive state budget reform. The statement also opposed the$350 miliion redevelopment fund take. The revised budget accord meets the Governor's demands for stricter restrictions on accessing the budget reserve and provides additional authority to make mid-year carrections when revenues and expenses fali out af oalance. lnstead of withhoiding more taxes fram paychecks as a interest-free laan, the new budget wouid raise these revenues by increasing penal#ies on carporations for tax violations. The Senate is scheduled ta go into session to make necessary adjustments to the buaget today (Friday) at 4 p,m.,with the Assembly to fol►ow af 5 p.m. Funding Areas of Specific Interest to Cities The final budget is expected to include funding allocations for these programs of importance to Caiifornia cities.The analysis below also reports on areas discussed with the Governor's May Revise even if not funded with the final budget package.At the end of this analysis is a chart outlining the budget trailer bills for FY 2�08-09. Loca[Government Financinq No Borrowing.The budget does not borrow fram Prop. 1 A(property tax)or Prop.42 (sales tax on gas}funds. RedeveEoptnen#Agencies.The budget inc(udes a one-year, one-time, ERAF shift of$350 million from redevelopment agencies{included in AB 1389,trailer bill). These funds wiil no#be repaid. Redevelopment agencies must pay their shares of the$350 million prior fo May 10, 2009. Borrowing from redevelo�ment housing funds is permitted under restricted circumstances. Legislative bodies are al{owed to Ioan redevelopment agencies funds to make the payment based upon terms established by the legislative body and agency. Estimated impacts to redevelopment agencies can be found at http�//www cafredevelop orq/AM/Template cfm�Sectian=Home&TEMPLATE=/CM/ContentDisplav .cfm&CONTENTID=4665 State Mandates Reimbursement.The budget will defer$75 mifiion in state mandate repayments. Cities receive about 30 percent of mandate repayments. Public SafetV COPS/Juvenile Justice Grants.The Citizen Option for Public Safety(COPS}/Juvenile Justice Crime Prevention Act Program is funded at$294.2 milfion, or$107.1 million for each program. The budget act specifies that these payments will be made to locai governments in four equal payments in Sepfember, December, March and June rather than in a lump sum. Details on sach city's allocation is available at www californiacitvfinance.comlCOPSfv08MCest.pdf. Booking Fees.The budget incfudes an appropriation of$31.5 millian for county sheriffs far Local Detention Facilities(Gov Code 29552). This is 10 percent lawer than FY 2007-09 levels. Current law stipulates that in any year that the budget appropri�tion is less than$35 million,counties may impose booking fees on cities in praportion to tt�e amount under appropriation. In this case, it 2