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9A Page 3 'Budget' Continued from Page 1... Republicans have indicated for weeks that they would be willing to discuss revenue increases, but only after the Legislature has passed reforms that cut programs and limit future spending. The change Is that the Republicans are signaling that they would be willing to vote for a comprehensive package that includes both tax increases and reforms. Quoted in the Sacramento Bee, Assemblyman Anthony Adams, R-Hesperla, said, "The reforms have to be there. 0Ne must be able) to tell constituents, 'Look, we had to raise taxes, we had to go forward. but we've fundamentally altered the way in which Sacramento is going to be budgeted - and we will not have these problems again because of it. m Administration Floats Proposal on Deferring Transportation and Mandate Payments to Local Agencies. The League is asking city officials to provide us with information on how their city would be affected by an administration proposal to defer payments to local agencies of local highway users taxes, Prop. 42 funds and mandate reimbursements. (Visit htto:/lwww.californiacitvfinance.com/#CITY-STATE for "New Administration Proposal to Defer Local Highway Users Taxes, Proposition 42 Funds and Mandate Reimbursements".) State Controller Chiang Refuses to Go Along with State Worker Furlough. Also this week, State Controller John Chiang announced that he would not cut state workers' paychecks as requested by the Governor, unless directed not to do so by the judge hearing a lawsuit brought by state workers. The lawsuit challenges the Governor's order to state workers to take off two days a month without pay. The controller's decision is welcome news to state workers, but eliminates a budget-cutting tool the Governor had hoped to use to minimize pressure on the state general fund. The Governor and "big four" legislative leaders were scheduled to meet today to continue budget discussions. Tax Reform Commission Begins Work. Also this week, the Commission on the 21st Century Economy held the first of three meetings yesterday in La Jolla to formulate a plan to overhaul California's tax system. The commission plans to focus on changes that will reduce the volatility in the state's revenue system, due in large part to the state's dependence on income taxes paid by a relative few high-income taxpayers. The commission will also consider extending the sales tax to services as a means of ensuring. more long-term growth in its revenues and making the state less dependent on income taxes. 'Speclal Reception' Continued from Page 1... League President Judy Mitchell, Mayor of the city of Rolling Hills Estates. presented the awards honoring Assembly Member Tom Berryhill (R-Modesto). former Assembly Member John Laird (D-Santa Cruz), Assembly Member Lori Saldana (D-San Diego) and Sen. Lois Wolk (D-Davis). All four were recognized for their leadership and support of local government during the 200Blegislative session. League President Judy Mitchell thanks Assembly Member Tom Be ill for his work with cities durin 2008. Assembly Member Berryhill was recognized for his response to metal theft, an issue that has been plaguing farmers in his Central Valley district as well as cities around the state. 3