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<br />BUDGETfrom page 1 - $ 66066 0 4 6 6 00 6699666406 6 6 6 6 e 000000 0 0 6 0 0 0 0 6 0 0 0
<br />The legislation establishing the "backfill" ap-
<br />proach was enacted in 1998 as part of a larger
<br />package that also reduced the VLF tax paid by
<br />consumers. A voter - passed constitutional amend-
<br />ment in 1986 earmarks the VLF as a source of local
<br />government revenue. The backfill was intended to
<br />cover the loss of revenue to local governments, in
<br />effect shifting the burden of the consumer tax cut to
<br />the state general fund.
<br />This year the backfill amounts to about $4
<br />billion. The Governor proposed in his January 10"
<br />budget announcement to take the backfill, use it for
<br />state general fund purposes and to leave local
<br />governments with no replacement revenue.
<br />Next Step: The Senate
<br />AB 4X will likely be heard early next week in the
<br />Senate. Exact timing is uncertain: city officials
<br />should remember that the schedule of the Legisla-
<br />ture has been somewhat unpredictable during these
<br />early, and very difficult budget negotiations.
<br />The Senate is giving out mixed signals about AB
<br />4X. It is difficult to predict the final outcome with any
<br />certainty. If the bill is passed by the Senate, it would
<br />go to the Governor's desk for signature. The
<br />Governor has repeatedly expressed his displeasure
<br />with the legislation, but has stopped short of saying
<br />it would be vetoed. If signed by the Governor, the
<br />Governor and the Department of Finance still have
<br />the option to actually execute the trigger mechanism
<br />in law, as clarified by AB 4X. The ultimate fate of the
<br />legislation may get caught up in larger "budget
<br />politics" and strategies. While all of this ill- defined,
<br />grayness works itself out, the League remains in full
<br />support of the passage of AB 4X.
<br />Keep those phone calls, letters and resolutions
<br />coming!
<br />Your Senators need to hear from you about
<br />the importance of passing AB 4X — the only
<br />specific proposal the legislature has developed to
<br />restore the VLF. Go to the League's on -line advo-
<br />cacy center at www.cacities.orc / advocacvicenter to
<br />access a sample letter. Also, if your city has not
<br />yet passed a resolution supporting restoration of
<br />the VLF, please do so as soon as possible. There
<br />is a sample on the budget alert web page at
<br />www.cacibes.org /budget. If you are talking to your
<br />legislators, members of the community or the media,
<br />we have talking points for you on the budget alert
<br />web page.
<br />Don't Forget Your Thank- You'sl
<br />Please remember to thank those members of
<br />the Assembly who voted for the passage of AB 4X.
<br />This is a critical option that needs to be placed in
<br />law to allow the Governor and legislature to keep
<br />the promise given in 1998 that local governments
<br />would be held harmless as a result of the vehicle
<br />license fee tax cut made in that year. Go to the on-
<br />line advocacy center at www.cacities.org/
<br />advocacycenter for a sample thank you letter, and
<br />a sample letter to the editor to publicly thank your
<br />legislator.
<br />HOW DID YOUR ASSEMBLY MEMBER
<br />VOTE ON AB 4X (WESSON)?
<br />The measure was passed on a vote of: 45 AYES
<br />and 34 NOES. That vote was as follows:
<br />AYES: (45) Berg, Bermudez, Calderon,
<br />Canciamilla, Chan, Chavez, Chu, Cohn, Corbett,
<br />Diaz, Dutra, Dymally, Firebaugh, Frommer,
<br />Goldberg, Hancock, J. Horton, Jackson, Kehoe,
<br />Koretz, Laird, Leno, Levine, Lieber, Liu, Longville,
<br />Lowenthal, Montanez, Mullin, Nakano, Nation,
<br />Negrete - McLeod, Nunez, Oropeza, Pavley, Reyes,
<br />Ridley- Thomas, Salinas, Simitian, Steinberg,
<br />Vargas, Wiggins, Wolk, Yee, Wesson.
<br />NOES: (34) Aghazarian, Bates, Benoit, Bogh,
<br />Cogdill, Correa, Cox, Daucher, Dutton, Garcia,
<br />Harman, Haynes, S. Horton, Houston, Keene, La
<br />Malfa, La Suer, Leslie, Maddox, Maldonado,
<br />Matthews, Maze, McCarthy, Mountjoy, Nakanishi,
<br />Pacheco, Pana, Plescia, Richman, Runner,
<br />Samuelian, Spitzer, Strickland, Wyland.
<br />NOT VOTING: (1): Campbell.
<br />PAGE 2 /PRIORITY FOCUS Visit the League's Official Web Site -- www.cacities.org
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