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8A Page 9 'Budget Bills' Continued from Page 1... In a "normal" state budget process, major elements of the budget are vetted during a fairly orderly, predictable six-month process, with many budget subcommittee hearings and time for detailed legislative and public review of specific provisions. Since January, however, much of the discussion surrounding the budget has taken place in the private "Big Five" discussions, invofving the Governor and legislative leadership. In these discussions. the decision was made to address both the structural imbalance in the FY 2008-09 budget and the projected deficits in the FY 2009- 10 budget. This process, combined with last minute arm-twisting to secure the necessary budget votes, resulted in 33 bills being placed into print on very short notice. Below is a description of the contents of those bills. 3rd Extraordinary Session 58 x3 1 (Duchenvl- Principal FY 2009-10 State Budget Bill: This 657-page bill is the budget bill for FY 2009-1 a, containing the department-by-department, line-item appropriations for every program in state government. Given the ,complexity of this measure, the League will produce a follow-up analysis next week of provisions in this measure that may be of interest to cities. 58 x3 2 (Duchenvl - Mld...Year Adjustments to FY 2008-09 Budget: Makes numerous reductions to previously approved appropriations, unallocated cuts to reflect state employee savings, as well as other modifications and technical changes to the 2008-09 Budget Act, which include the fonowing provisions affecting cities: . Reducing funding for local public safety grants provided through the Office of Emergency Services by $23.9 million . Reducing the allocation for local transit agencies from $306 to $153 million . Using $11 million of Proposition 84 funds for court-ordered Americans with Disabilities Act improvements by the Department of Parks and Recreation . Reducing funding for Corrections Standard Authority local public safety programs by $75.5 million, including juvenile facilities' support and inmate transportation reimbursement (largely county-based) . Borrowing $5 million from the Peace Officers Training Fund This measure also includes a provision that moves the date of the Governor's traditional Budget "May Revise" to June 8. AS x3 3 (Evans) - State Tax Increases: Sales and Use Tax, Income Taxes, Vehicle License Fees: Below is a listing of the state tax increases approved as part of the budget package. The duration of all of these taxes ;s extended for an additional period if the voters approve the ballot measure containing the state spending cap ACA x3 1 (Niel/o), which will appear as Prooosition 1A on the Mav 19.2009. statewide elections. . Statewide Sales and Use Tax. Increases the current tax rate by 1 percent as of April 1, 2009. The rate increase sunsets on July 1, 2011. If the voters approve Prop. 1A, then the tax Increase will continue until July 1, 2012. . Vehicle License Fee (VLF). Increases the VLF rate for all vehicles (except for commercial vehicles with a gross weight of 10,000 pounds or more) by 0.5 percent. While the revenue from the 0.35 percent increase will be deposited into the General Fund (GF), revenue from the 0.15 percent increase will be transferred to a newly-created Local Safety and Protection Account, appropriated for specific local public safety programs. The VLF rate increase will become effective for registrations beginning May 19, 2009, and sunset on June 30,2011. If voters approve Prop. 1A then the tax increase will continue until July 1. 2013. This measure further inserts a "kill switch" designed to protect the revenues directed for local public safety. The Director of Finance (OOF) is required to determine and report to the Legislature by Jan. 10, 2010, and each year thereafter, if the revenues derived from the 0.15 percent increase are being used for any purpose not authorized by the newly created Local Safety and Protection Account. If the DOF determines that funds are being used for other state purposes, then the Director of Motor Vehicles shall, upon receiving this notification, immediately cease collection of the tax. . Personal Income Tax. Increases the personal income tax rate by either 0.2.5 percent or O. 125 percent to each marginal personal income tax rate, or to the alternative minimum tax rate (taxpayers pay whichever is higher), for the years 2009 and 2010. The amount of 2