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<br />9A <br />Page 13 <br /> <br />'Budget' Continued from Page 1... <br /> <br />The Department of Finance (DOF) expected that the economy would be in its current situation <br />when evaluating the budget last year for FY 2010-11. However, there are a number of reasons <br />the budget Is almost $20 billion out of whack (approximately $6 billion in FY 2009-10 and $14 <br />billion in FY 2010-11). The FY 2009-10 budget was based on solutions which could not be <br />achieved because of the decision in the transit lawsuit, medical costs related to the prison <br />system, the inability to secure federal funds, lack of flexibility to reduce Medi-Cal costs, state <br />case load increases and the collapse of the plan to sell a portion the State Insurance <br />Compensation Fund. <br /> <br />The League presented an initial analysis of the Governor's budget (www.ebudaet.ca.aov) impact <br />on cities last week in City Advocate Weekly. The Jan. 8 story can be found on the League's Web <br />site at <br />htto:/Iwww.cadties.ora/index.iso?disolavtvoe= 11 &zone=locc&section=&sub sec=&tert=&storv=2 <br />7928. <br /> <br />LAO Releases Budget Analysis <br /> <br />State Legislative Analyst Mac Taylor released the Legislative Analyst's Office (LAO) analysis of <br />the Governor's budget on Monday, Jan. 11. Taylor briefed the Joint Legislative Budget <br />Committee on Wednesday on the report. He told the committee that the Governor's budget is the <br />starting point for the budget process and said that the Legislature can now propose alternative <br />scenarios to close the massive deficit. Taylor warned that the Governor's plan to secure almost <br />$7 billion in federal funds is unrealistic. <br /> <br />LAO's report also warns that the revenue and spending projections in the Governor's budget <br />aren't viable. To close the deficit, along with the requested federal funds, the Governor also <br />proposes $8.5 billion in cuts and other solutions including the swap of the gas tax funds which the <br />League is continuing to review. LAO's budget analysis can be found at <br />www.lao.ca.aov/laoaoo/main .aSDX. <br /> <br />OOF Staff Briefs City Lobbyists <br /> <br />Mark Hill, DOF program budget manager, met with League lobbyists and lobbyists representing <br />individual cities on Thursday, Jan. 14 at the League's office. He presented a dire outlook on the <br />economy. Hill explained that California could expect moderate growth in future years which would <br />begin to help the state's budget outlook. <br /> <br />Hill told the lobbyists that it was the Governor's "personal preference" not to raise taxes to close <br />the deficit especially given the state of the economy. Hill answered numerous questions on the <br />effect of the budget on transit, transportation funding, and other matters. <br /> <br />League staff is continuing to review the implications of this budget, especially the proposed gas <br />tax swap for an alternative revenue source (excise tax), and will provide additional information to <br />cities shortly. <br /> <br />'News Conferences' Continued from Page 1... <br /> <br />The news conference held in Foster City on Monday was the first of several across California this <br />week, including Los Angeles, Sacramento and Redding. <br /> <br />Californians to Protect Local Taxpayers and Vital Services, the coalition supporting the ballot <br />measure, plans to collect more than 1.1 million signatures to ensure it meets the required <br />694,354 valid signatures needed to qualify a constitutional amendment for the statewide ballot. <br /> <br />Foster City, Jan. 11 <br /> <br />Local officials rallied in Foster City to speak out against state diversions of local funds. <br /> <br />2 <br />