AgdaPkt 2010-01-25 clsd and regular

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Transit. This funding swap has the greatest immediate impact on transit operations. Prop. 42 funding for the Public Transit Account and the Spillover is eliminated under this proposal. This means a reduction of transit funding of $1.5 billion in FY 2010-11. 9A Page 3 The Governor proposes to fund capital projects for transit: . $350 million in Prop 1 B funding for local transit projects; and . $581.4 million in High Speed Rail bonds and $375 million in Federal ARRA funding to continue environmental planning and preliminary engineering. and to begin purchasing land. However, none of these sources are available for transit operations. Public Contracting. The budget proposes to shift $12.5 million in costs to local agencies for developing Cal-Trans Project Initiation Documents for local projects. Redevelopment Agency Property Tax Shift. The Redevelopment Agency property tax shift proposed last year for FY 2010-11 budget remains. The Governor proposes to shift $350 million in redevelopment agency property tax increment revenues in FY 2010-11 to fund county trial courts. This is consistent with the approved FY 2009-10 Budget and is the subject of legal challenge. However, the use of the funds to supplant state funding of trial courts is new. State Cash Flow and Delays of Local Payments. Projects that the cash flow difficulties faced in recent years will be substantially reduced, particularly if the budget solutions offered are adopted. However, the Governor's proposal states that some payment deferrals will still be needed. These are not specified, but city funds affected by these payment deferrals in recent years include monthly payments of local HUTA funds and Prop. 42 state sales tax on gasoline funds for streets and roads. State Mandate Reimbursement. The Governor proposes to again delay payments to local governments owed for mandate costs prior to FY 2004-05. This funding was deleted from the last two fiscal years' budgets. Public Safety COPS and Booking Fees. Governor's proposal would maintain the formula established in the FY 2009-10 budget that created the Local Public Safety Account providing funding for COPS programs, booking fee reimbursement, rural sheriffs, juvenile probation, and crime prevention programs. The account was created by shifting the program funds from a direct General Fund allocation to a 0.15 percent carve-out from the Vehicle License Fee (VLF). The account would receive $442 million in FY 2010-11, representing a $26 million increase from FY 2009-10. These projections fall short of the $500 million allocation made from the General Fund in previous budget years. This funding, however, would expire at the end of FY 2011 when the VLF increase is scheduled to sunset. The Department of Finance did note that revenues would likely continue to trickle in past the expiration date because vehicle owners have been making late payments on their vehicle registrations. Emergency Response Initiative. The Governor reintroduced for a third year his Emergency Response Initiative that places a surcharge on all residential and commercial property insurance plans statewide to fund the state's emergency response capabilities. The surcharge amount of 4.8 percent would result In an annual appropriation of $200 million towards enhancements for CAL FIRE, the California Emergency Management Agency (formerly Office of Emergency Services), the Military Department, and assistance to local agencies first responders in support of the state's mutual aid system. Corrections. The Governor proposes cutting the Department of Corrections and Rehabilitation budget by $1.2 billion for the second year in a row. As outlined, this would be partially achieved by changing sentencing for non-violent, non-serious and non-sexual felony offenses so that county jails can retain a segment of inmates that would otherwise be sent to state prison. (Drug possession is an example of a felony that would carry a one-year jail sentence in lieu of prison.) 3