AgdaPkt 2008-11-24 - Laserfiche WebLink

Browse Search

9A Page 2 'Budget' Continued from Page 1... LAO's analysis supports the Governor's framework to close the gap with a combination of cuts and tax increases and recommends that the Legislature take quick and aggressive action to solve the problem. LAO further suggests alternative revenue increases and program reductions to ensure minimizing harm to the state's taxpayers and core programs, and raises concerns about future shortfafls. According to the LAO analysis, the Governor's proposal, including a three-year, 1.5-cent state sales tax Increase to raise state revenues by approximately $3.5 billion in FY 2008-09, extending the sales and use tax to certain services, imposing a tax on oil extraction, increasing alcohol and excise taxes by 5-cents per drink, would essentially close the $28 billion gap. However, in three years when the sales tax increase ends and available funds from the lottery are borrowed, the state's budget problem would grow once again to between $9 billion to $11 billion annually. The analysis also provides some alternatives to the Governor's proposed budget solutions including several that would impact local govemments: . Increasing the required redevelopment Educational Revenue Augmentation Fund (ERAF) shift to schools from $350 to $400 million in the FY 2008-09 budget, and making this shift on an annual basis. . Making a vague proposal related to the Citizens' Option for Public Safety (COPS), Juvenile Justice Crime Prevention Grants, Booking Fees, and Small and Rural Sheriffs' Grants programs. While the Governor's proposal is to shift these programs off of the .. general fund and backfill a portion of the 1055 through Vehicle License Fees (VLF), the LAO is not looking at backfilling COPS or Booking Fees from VLF. It has not been deteTmlned whether LAO will propose backfilling the Juvenile Justice program. . Increasing VlF fee revenues from the current rate of 0.65 percent to a full 1 percent, and using those revenues to shift additional state responsibilities to counties. . Shifting funding from water and regulatory programs to fees, with the rationale that beneficiaries of state services should pay the state's costs of providing these services, and that regulatory programs should be fully funded by regulated entities. League staff is still trying to get more information on this proposal to determine how it could affect local governments. . Partially shifting funding for wildland fire protection in state responsibility areas to new fees. Property owners benefitting from the service would also pay a share of state costs. The state would still bear one-half the cost of protecting wildlands from fire. . Repealing the Animal Adoption Mandate and paying prior years' costs over time. . Eliminating California Gang Reduction Intervention and Prevention program and Internet Against Crimes Against Children Task Force. Program funds for the next several years would be transferred from the Restitution Fund to the General Fund. . Sweeping all Motor Vehicle Account revenues not subject to Artide XIX to be used for general purposes. The League is still attempting to determine if this proposal affects local funding. . Eliminating the state's First Five Commission established by Proposition 10 (1998) and redirecting 50 percent of these funds to children's health or childcare programs. This would target resources to high-priority state programs while allowing some local priorities to be supported. Prop. 10, which added a 5O-cent tax per cigarette pack and annually generates approximately $700 million for education, health and child care programs related to ear1y childhood development, would impact counties because of the new burden of running administrative services this state commission currently provides. Corrections/Public Safety: LAO also proposes a number of policy changes to state prison inmates designed to save state costs that will have impacts on local public safety and law enforcement resources: . Change so-called "wobbler" crimes to misdemeanors. Offenders diverted from prison would still be subject to criminal sanctions at the local level; . Release all no-lifer inmates 30 days early; . Exclude inmates with less than six months to serve from prison; . Reduce time served for parole revocations; and 2