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�44 BUDGETfrom page 1 ................. ............................... With this urgency, over the last week there have been a number of high -level discussions of options, and more discussions are expected in the next week. In these discussions, several issues have emerged that ultimately could have an impact on cities. First, previous budget proposals and discus- sions raised the possibility of a local government cut in the $500 million range. This figure first emerged in the Senate Republican Budget proposal in February, and was referenced more recently in a number of Assembly offices. We understand that, as the two parties remain split on the subject of new taxes versus deeper budget cuts, higher figures are being discussed as well, and special districts could be included. direction in the budget negotiations, but major parts of the debate appear more focused. We are clearly entering what can be expected to be a very active and critical two weeks in the budget negotiations. City officials should remain on HIGH ALERT as we enter the next two weeks. DON'T MISS THE JUNE ISSUE OF WESTERN CITY MAGAZINE: ETHICAL DECISION - MAKING AND CONTROL OF LOCAL REVENUE Permanent Cuts Untenable Second, and perhaps more disturbing than the proposed cut level, is possible consideration that any cuts to local government could be permanent cutslll The state budget deficit is a multi-year prob- lem, but it does not require a permanent hit to local government. Local government is more than willing to cooperate with the state as it works its way out of this deficit over a period of time and as the economy stabilizes, but nothing in this scenario requires a permanent reduction of local govemment revenues. A permanent cut would be ERAF all over again. A bottom line in the League's message to legisla- tors: NO PERMANENT CUTSM Support Grows for Constitutional Protection Proposal The good news that emerged this week is that legislative leadership is seriously considering a constitutional protection measure that will go on the ballot to prevent the state from taking money from local government in the future to solve its fiscal problems. The measure is being proposed as part of the budget solution and could go on the ballot as early as March of 2004. There are many details still to be worked out with this proposal and with the budget in general, but the idea of constitutional protection for local revenues it is a serious part of the discussions. What does all this mean? There still is no clear e The Importance Of Using Principles, Not Just Rules, To Guide Ethical Decision - Making — by League President John Russo • The Municipal Information Systems Association Of California (MISAC) Offers Help, Resources and Ideas For Cities • Calling All First Responders: Making Connections for Security in Southern Califor- nia • Ontario Tries An Innovative Approach To In- The -Field Data Entry and Retrieval • The Origin & Devolution Of Local Rev- enue Authority Plus — Tough Questions and Tight Spots Everyday Ethics for Local Officials Plus— Finance Series: Look Before You Leap: Ethical Hurdles of the State Budget Crunch All this, plus information on city jobs and businesses that provide services to cities. For over 75 years, the League's award - winning Western City magazine has been the best source of information for California city decision makers. For subscription information call: 916.658.8223, or visit the Western City Web site at www.westemcity.00m. PAGE 4 /PRIORITY FOCUS Visit the League's Official Web Site-- www.cacities.org