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from redevelopment agencies, rumors and discussions continue among legislative staff and others about additional efforts to take redevelopment funds or uredevelopment reform." Clearly any proposal dealing with redevelopment would have fiscal impact to local governments. The League has been working with CRA to prepare to respond to any proposals that emerge. 8A Page 12 State-Local Government Fiscal Relationship Reform Senate President Pro Tem Darrell Steinberg (D-Sacramento) has mentioned his interest in instigating a larger discussion of reforming the state-local government fiscal relationship. While no details are available. one aspect of this discussion involves shifting some health care responsibilities to local governments. According to an article in the Los Angeles Times June 3, funding for the programs would come from the state. however, locals would have to keep the costs contained or find funding jf the costs rise. Another aspect of this discussion would involve lowering the voter threshold at the local level for tax increases. It is unclear when such discussions would occur. Bottle Bill Program Deficit The Department of Conservation on Monday, June 1, announced that the state's beverage container program has a negative balance of $157 million. This bottle bill program funds city and county grant payments for recycling (at $10 million annually) as well as the state's bottle and can CRV recycling program. The administration's plan to address this massive deficit, submitted to the legislative budget committees this week, makes proportional cuts to the program. It also included a policy that grants could only be given if the program had a surplus. List of Officials Opposed to Borrowing Grows Along with Controller Chiang, other constitutional officers and legislators have come out against borrowing. A number of these state officials have made a video for www.SaveYourCitv.net including Republican Gubernatorial Candidate Tom Campbell, Sen. Dave Cogdill (R-Fresno), Sen. Jeff Denham (R-Merced) and Assembly Member Tom Berryhill (R-Modesto). Other state level officials who have publically said they oppose borrowing local government revenues include Insurance Commissioner and Republican Gubernatorial Candidate Steve Poizner. Senate Republican Leaders Dennis Hollingsworth (R-Murrieta), Sen. George Runner (R- Antelope Valley), Sen. Bob Huff (R-Glendora), Assembly Member Steve Knight (R-Palmdale) and Assembly Member Jim Nielsen (R-Biggs). Key Budget Process Players The Budget Conference Committee includes five legislators from the each the Assembly and Senate: Assembly Member Noreen Evans (D-Santa Rosa) is chair. Other appointed members include: Assembly Member Kevin de Leon (D-Los Angeles), Assembly Member Bob Blumenfield (D-Woodland Hills), Assembly Member Roger Niello (R-Sacramento), Assembly Member Jim Nielsen (R-Biggs), Sen. Denise Ducheny (D-San Diego), Sen. Bob Dutton (R-Rancho Cucamonga), Sen. Mark Leno (D-San Francisco), Sen. Alan Lowenthal (D-Long Beach) and Sen. Mimi Walters (R-Laguna Hills). The UBig Five" is comprised of the Governor, Senate President Pro Tem Darrell Steinberg, Assembly Speaker Karen Bass, Senate Republican Leader Dennis Hollingsworth and Assembly Republican Leader Sam Blakeslee. Call to Action: 1. Keep Up The Pressurel City officials need to continue to speak to their legislators about the impacts of these pending budget proposals on their communities. The most recent talking points used by city officials are on the League's Web site. 4