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90 VLFfrom page 1 .................................................. Current Year VLF and RDA Cuts Rejected The Senate and Assembly budget committees both adopted a number of cuts proposed by the Governor. Of importance to local government, both committees rejected the Governor's proposed cuts in the current year to the vehicle license fee backfill and to redevelop- ment agency housing set -aside funds. For the time being, local governments have escaped any significant cuts to local revenues; but it is still early in the process and the more difficult cuts are expected to occur when constructing the 2003 -04 budget. The urgency in taking these budget actions in January is to secure both savings and revenue gains for as long as possible in the current budget year. The goal is to have any cuts and revenue enhancements in place by February 1s to ensure at least 5 months of budget adjustments for the remainder of the 2002 -03 budget year. VLF "Trigger" Bill Clears First Hurdle In addition to the cuts made by the commit- tees, the Assembly Budget Committee passed a measure to amend the current authority for the Department of Finance to increase the vehicle license fee tax when there are insufficient rev- enues in the state general fund. This is commonly referred to as the "VLF Trigger." Authority already exists in law, but clarification was needed to implement the law. The bill now goes to the floor of the Assembly for a vote on Monday and, if ap- proved, it will be sent to the Senate for their con- sideration next week. The measure to "install" the VLF Trigger is ABX1 4 and it is authored by Assembly Speaker Herb Wesson. The bill is strongly supported by the League, the California State Association of Counties (CSAC), public safety organizations and dozens of California cities and counties. It is a measure necessary for the legislature to keep its promise to protect local government revenues after they granted a vehicle license fee tax relief measure in 1998. The bill passed with 19 AYES, 9 NOES and 3 abstaining, absent or not voting. (See below for information on how many members voted.) The vote followed a week of intense activity by city officials and their partners in the LOCAL coalition, in which legislators in virtually every district in the state were urged to support restora- tion of the VLF. The fees are a significant and comparatively stable source of general purpose revenue. Speaking in support of the bill Assembly Mem- ber Fran Pavley (Agoura Hills) said, "This bill is simply ending the rebate program." "Cities were counting on this revenue. We need to provide it." The passage of ABX1 4 is a critical piece for local government and the state in resolving this tremendous budget deficit faced by the state. City officials need to keep the pressure up in their efforts to convince Legislators to pass AB 4x to the governor's desk. (See related VLF article, page 1.) ASSEMBLY BUDGET COMMITTEE VOTE ON ABX14 JANUARY 23, 2003 AYES Oropeza Bermudez, Canciamilla, Chan, Chu, Diaz, Dutra, Dymally, Frommer, Goldberg, Jackson, Levine, Liu, Montanez, Nakano, Pavley, Reyes, Simiban, Wolk NOES Campbell, Benoit, Daucher, Haynes, Keene, Maze, McCarthy, Pacheco, Runner ABSENT, ABSTAINING, OR NOT VOTING Bates, Cogdill, Harman PAGE 4/PRIORITY FOCUS Visit the League's Official Web Site-- www.cacities.org