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9A Page 3 taking an additional $350 million in both FY 2009-10 and FY 2010-11 from redevelopment agencies. This massive hit on local redevelopment agencies totals $1.050 billion and would mothball many planned local redevelopment projects that provide economic development and jobs that are desperately needed in this economy. Given that the courts have already deemed this action unconstitutional. if approved. it will trigger additional litigation. Borrowing Property Taxes under Prop 1A DOF proposed borrowing local property taxes under Proposition 1 A through an 8 percent across- the-board approach. LAO and others are suggesting alternate formulas that suggest that enterprise special districts should lose their remaining property tax shares and the exemptions should be made for hardships situations. The Legislature is free to come up with other means of distributing the hits. The Budget Conference Committee unanimously rejected the proposal to borrow $1.9 billion in local property taxes. An additional factor in the decision could be that DOF seems to be running into legal problems trying to get around the American Reinvestment and Recovery Act (ARRA) of 2009 maintenance of effort requirements if they back out of state funding for schools. While the loCal. property taxes are not currently included in the budget package. the proposal could come back on the table. Prop. 1 B Local Streets and Roads Funding The Conference Committee adopted LAO's proposal to offset local impacts by releasing the remaining $700 million in Prop. 1 B local street and road funds-of thIs amount, approximately $258 million is available for cities. Only cities that have not yet received their full Prop 1 B allocation are eligible for these funds. Prop. 42-Sales Tax on Gas Revenues OOF proposes to defer payments to local governments for cash flow purposes during FY 2009- 10. Draft proposals indicate deferrals in both.October and January to be repaid in May 2010. The committee rejected a previous proposal from LAO to borrow 80 percent of Prop. 42 (sales tax on gas) funds for FY 2009-10. Local Public Safety Funding-COPS/Booking Fees COPS. Booking Fees and other local public safety programs are currently being funded by the new 0.15 percent increase, approximately $500 million per year. in the Vehicle License Fee (VLF) adopted as part of the budget signed in February. While the LAO had proposed taking half of these revenues for the General Fund, this was not adopted by the Conference Committee. Transit The Conference Committee adopted the OOF's proposed transfer of $336 million in transit spillover revenue to General Fund relief. Another proposal redirects $315 million in Public Transportation Account funds to pay for debt service on transit bonds. State Funding Shifts through Fees . The Budget Conference Committee adopted a DOF proposal requiring the Department of Industrial Relations Division of Occupational Safety and Health (OSHA) and the Division of Labor Standards Enforcement to charge fees on employers. This will have impacts on local governments as well. . The committee also adopted a requirement for the Bureau of Forensic Services to charge fees to state and local agencies for services. This would have a statewide impact of $20 million and could mean significant costs for smaller communities that rely on these services. A fee schedule is to be developed, and the bureau will report back to the Legislature In January. 3