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<br />9A <br />Page 4 <br /> <br />. $1.7 billion in revenue acceleration achieved by increasing income tax withholding in the <br />FY 2009-10 by 10 percent; <br />. $301.5 million in additionallHSS cost containment; <br />. $182 million would be saved by deporting undocumented immigrants housed in California <br />prisons; <br />. $150 million in additional cuts to CSU and UC; <br />. $138.9 in cuts to HIV awareness, domestic violence, child welfare and health programs; <br />. $108 million in savings by eliminating Prop. 36, substance abuse treatmentfunding; <br />. $99 million is savings by changing sentencing options so that lower-level offenders serve <br />time in local jails rather than state prison; and <br />. $82.9 million achieved in cuts to Healthy Families, Medi-Cal and other programs. <br />. $0.5 million gained from increasing state park fees. <br /> <br />Please visit the Department of Finance's Web site at www.dof.ca.Qov to access a copy of the May <br />Budget Revise. <br /> <br />May 19 Special Electloh <br /> <br />On May 19, six measures are before the voters: <br />. Prop. 1A: Strengthens state reserve funds, limits excessive state spending. <br />. Prop. 1 B: Repays schools $9.3 billion over time. <br />. Prop. 1C: Modernizes the state lottery, allows state to securitize $5 billion for budget. <br />. Prop. 1 D: Redirects over $1 billion in tobacco tax proceeds for state budget. <br />. Prop. 1 E: Redirects $460 million from Prop. 63 mental health tax for budget. <br />. Prop. 1 F: Prohibits salary increases for elected state officials during budget deficit. <br /> <br />Other legislation approved by the Legislature contains provisions that provide authority for the <br />Governor to enact mid-year budget cuts and extend the duration of various tax increases <br />contingent upon the approval of Prop. 1A. <br /> <br />Additional Context <br /> <br />City officials reviewing this proposal should consider the following: <br />1. Borrowing local property taxes must be strongly opposed; <br />2. The direct impact on cities of the remainder of these proposals is minimal. There are no <br />proposed takeaways of Props. 42 (sales tax on gas) revenues or redevelopment funds, <br />nor deferrals of local Highway Users Taxes; <br />3. These are the Governor's proposals and the legislature may not agree with many of <br />them. The legislature will advance other proposals which could be beneficial or harmful to <br />local government; <br />4. Much can change with the outcome of the May 19 special election if some of the <br />measures pass; <br />5. The state faces a major cash flow crisis this summer and the May Revise is silent on <br />infrastructure bond allocation, economic stimulus and other matters. It is likely, therefore, <br />that additional proposals will emerge following the election; and <br />6. As part of the February budget agreement, the legislature approved the FY 2009-10 <br />budget, so technically. the state already has an adopted budget that meets the July 1, <br />Constitutional deadline. However, the adopted budget is not balanced. How this will affect <br />the timing of legislative action is unknown. <br /> <br />Take Action: The League is launching Save Your City, an extremely aggressive campaign to <br />protect local revenue in this chaotic budget environment. Cities are passing resolutions, sending <br />letters, forming coalitions and making phone calls. It is imperative that city officials work with their <br />League regional public affairs managers and take action to protect their revenues. Make plans to <br />attend the League's Budget Action Day scheduled for June 3 in Sacramento. <br /> <br />'Meeting' Continued from Page 1... <br /> <br />City officials asked the Governor about the Department of Finance budget option put forth last <br />week which would have the state borrow $2 billion (8 percent) of local property tax revenues to <br /> <br />4 <br />