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9A Page 3 City officials will fight any budget proposal that attempts to raid local property tax revenues to bail out the state budget. 'May Revise' Continued from Page 1... The Governor stated that if the voters approve the six measures-placed on the ballot by the legislature and Governor as part of the February budget agreement-the state will have a $15.4 billion deficit to resolve; however, if those measures are rejected the deficit swells to $21.3 billion. If the propositions fail, the Governor proposes to borrow $2 billion in local property taxes to help close the deficit. Below is a summary of the major provisions of the May Revise: Proposal #1 (If ballot measures are aooroved by voters): A projected $15.4 billion state budget deficit would be resolved through a variety of cuts, program consolidation and borrowing. Programs with city impacts: . $34.7 in state savings by deleting reimbursement for Williamson Act subventions; . $40.1 million in state savings gained by charging fees to employers for Department of Industrial Relations programs; and . $336 million in "spillover" gas tax revenues are dedicated to transit bond debt service. An explanation of the "spillover" is posted online at www.californiacitvfinance.com/SoilloverF AQ. pdf. Other major budget components include: . $6 billion in borrowing from state-issued revenue anticipation warrants (RAW); . $3 billion reduction to K-14 schools, during FY 2008-09 and FY 2009-10; . $1 billion reduction to CSU and UC funding in FY2008-09; . $1 billion derived from the partial sale of the State Compensation Insurance Fund; . $750 million in proposed Medi-Cal changes which require federal waivers; . $610 million in revenue accelerations from Income tax estimated payments; . $245 million in cuts to social service and health programs to immigrants; . $248.5 million in savings by reducing state grant funding for aged and disabled; . $192 million in cuts and anti-fraud efforts to in home supportive service programs (IHSS); . $179.7 million in reductions and anti.fraud efforts to various Medi-Cal programs; . $156.7 million in savings from changes to CalWorks (welfare); . $132 million in savings by shifting to lower cost health care programs. Additional savings are gained by requiring 25 years of service for new state employees before eligibility commences for lifetime health benefits; . $100 million in revenue from an oil and gas lease off the Santa Barbara coast; . $50 million in savings from consolidating state departments and programs, including tax collection, energy and waste management; and . Additional savings from laying-off 5,000 state workers from positions funded through the General Fund. Proposal #2 (if ballot measures are relected by voters): A projected $21.3 billion state budget deficit would be resolved through these additional measures: Programs with city impacts: . $1.982 billion in borrowing property taxes from local government under Proposition 1A of 2004. A joint powers agency is also proposed to allow local agencies to borrow as a group against the state's repayment. Under this proposal the proposed $6 billion RAW (above) would be reduced by $500 million; and . $76 million from a new 4.8 percent surcharge on insurance policies to partially fund CAL Fire and local response agencies. Local agencies can receive reimbursement for costs incurred for responding to emergencies as part of the state's mutual aid system. Other major budget components include: . $2.3 billion in additional cuts to K-14 school programs; 3