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� I <br />DONT MISS THE APRIL ISSUE OF <br />WESTERN CITY MAGAZINE: ANEW <br />SERIES ON THE STATE -LOCAL FISCAL <br />RELATIONSHIP <br />• Why the State's Budget Crisis Could <br />Be a Golden Opportunity <br />• Reforming the State -Local Fiscal <br />Relationship <br />BUDGET UPDATE from page 1- • • • • • • • <br />Concurrent with this and other hearings was <br />news from the Legislative Analyst's Office (LAO) <br />that the budget deficit has grown by $1.3 billion <br />since earlier estimates were released. The leading <br />causes for this growth are the inaction on the <br />Vehicle License Fees ($250 million per month), the <br />rejection of several health care cuts that had been <br />proposed by Governor Davis ($51 million per <br />month), and the receipt of lower revenues than <br />projected by the state. <br />• State Intrusion Creates Fickle Fiscal <br />Future for Cities <br />• Navigating California's Budget Process <br />Plus - Online Advocacy Tool Makes <br />Communicating With Legislators Easier <br />Than Ever <br />Plus - Continuation of the Western City <br />series on Ethics: When the Best Person <br />for the Job is a Relative Matter <br />All this, plus information on city jobs and <br />businesses that provide services to cities. <br />For over 75 years Western City has been <br />the best source of information for California <br />city decision makers. For subscription infor- <br />mation call: 916.658.8223, or visit the Western <br />City Web site at www.westerncity.com. <br />Our Mission <br />Restore and protect local control for cities through <br />education and advocacy to enhance the quality of life for all <br />Californians. <br />In addition, the LAO suggests that the time to <br />make some of the cuts proposed by Governor <br />Davis has come and gone, and that the benefits <br />can't be recouped. <br />The next formal estimate on the status of the <br />State Budget will be released with the <br />Administration's "May Revise" budget due May 14 ". <br />QUOTES from page 6••• ••• - "• "• ••" <br />LA Daily News 3126103, State budget deficit <br />bigger than expected. "An independent analy- <br />sis of the midyear budget cuts signed into law last <br />week shows that the state will end this fiscal year <br />with a still- growing deficit of at least $8.2 billion — <br />almost double the amount Gov. Gray Davis had <br />hoped to carry into next year.... (Legislative <br />Analyst Liz) Hill's report surfaced Tuesday as a <br />key state Senate committee examined the budget <br />plan proposed by Republicans... the Democrat - <br />dominated Senate Budget Committee gave the <br />plan a chilly reception..." <br />Contra Costa Times 3/25/03, Budget dis- <br />sent in Legislature blocks benefits. "Ina <br />preview of politics to come over the state budget, <br />Republicans in the California Senate withheld <br />support Monday for a favored plan to borrow the <br />money needed to pay a pension obligation. The <br />idea to issue $2.2 billion in bonds to pay for retire- <br />ment benefits for teachers and state workers was <br />thought to be one of the few proposals embraced <br />by both Democrats and Republicans. But, GOP <br />leaders said they are unwilling — at least for now <br />— to accept the proposal as a single piece of <br />legislation outside of a larger budget agreement." <br />PAGE 8 /PRIORITY FOCUS Visit the League's Official Web Site -- www.cacities.org <br />