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i I,A -4 BUDGETfrom Page 3 . . ... . .... . ... . .... . ... . ... . .... . 0 0 0 . 0 0 0 4 . 0 0 4 . . fee costs, then later decided to reimburse the cities for these costs. Under the governor's new proposal the state reimbursements to cities will end, but the charges will continue. Realignments and Tax Increases The Governor identified as a centerpiece of his budget a proposal to shift to counties new respon- sibilities for administering health and human services programs. This "realignment" models a similar shift of program activities that occurred in the early 1990's, which the Legislative Analyst has studied and deemed to be a success. The budget estimates that these "realigned" programs will cost counties $8.2 billion to administer. To offset these costs, the budget proposes tax increases, expected to generate $8.3 billion. They consist of a 1 -cent increase in the sales tax (generating $4.6 billion); increasing personal income tax rates to 10 and 11 percent for the top- earning brackets ($2.6 billion); and 1 10 increase in the excise tax on cigarettes ($1.2 billion). The California State Association of Counties (CSAC) is carefully reviewing the details of this proposal; the League will keep cities informed as they conduct their analysis. The League is also still analyzing the fine print in the budget, which was released at noon today; more information will be posted on the website as details are better understood. What City Officials Can Do Do your homework. Run the numbers for your city, so you know exactly how much VLF your city receives, and what you use it for. Many cities did this drill last year, when we worked on preserv- ing the VLF. Update your figures. Be prepared to tell your story about what is at risk to your employ- ees, the media and the residents and businesses in your city. Share your stories with us so that we can have the information we need when represent- ing you during this debate. You can send them to your League Regional Representative (see below). Connect with your League Regional Rep- resentative. You can find her or him through the our newly introduced Grassroots Division pages. Go to www. cacities.oro/issuesandadvocacv. The League will continue to work with our partners in local government and other interested groups through the LOCAL Coalition (Leave Our Commu- nity Assets Local). Your Regional Representative is your gateway to those activities, and able to help you tell get the information you need to tell your budget story to legislators and the community. Continue to talk to your legislators. Tell them that we understand the urgency of the state's problem, but that the VLF proposal is a non- starter: the VLF fees must be restored immedi- ately, and this issue should be taken off the table. Stay informed. Visit the budget page on the League's website (www.cacities.orq /budaetj for regular updates, analyses, facts and figures and helpful links. Most importantly, this is also where You can see and respond to any calls to action. You will be connected to the on -line Advocacy Center where you'll find talking points, draft letters you can use to send on -line, fax or download and send as a letter. (Any on -line transmittals will generate a copy that goes to the League, but if you mail a letter, please be sure to send a copy to League Revenue and Taxation Lobbyist Jean Korinke, email ikohnke eacities.ora.) Stay Focused. We're in this for the long haul. It will be months before this budget is put to bed. This is not the hundred yard dash. This is the Western States Hundred Miler, right over the Sierras. PAGE 4/PRIORITY FOCUS Visit the League's Official Web Site-- www.cacities.org