AgdaPkt 2003-06-30 - Laserfiche WebLink

Browse Search

OR OVA QUOTES f r o m page 6--- • • • s s • • • • • • • PERS from page 4.................. plans to raise taxes to balance the budget and don't want to see services cut, according to a new poll." Sacramento Bee, 6/12/03, $11 Billion in Short-Tenn Debt is Sold, but Westly Says a Budget's Still Vital. "California secured a low interest rate from investors for an $11 billion short- term loan to keep the state afloat, despite poor credit ratings and warnings that the cash - strapped state is falling out of favor with Wall Street, Con- troller Steve Westly announced Wednesday." Oakland Tribune, 6/12/03, State Faces High Cost of Financing. "California, with the lowest credit rating among U.S. states, paid about twice as much as comparable borrowers, a penalty of $109 million, to sell one -year warrants needed to pay the state's bills." The L.A. Daily News, 6/13/03, Layoffs in Health Care Announced. "Los Angeles County health officials plan to send out pink slips Monday to about 130 employees, including 40 doctors, as patients face long lines and overcrowded condi- tions at hospitals and clinics, officials said Thurs- day." The San Bernardino County Sun, 6/13/03, City Council Tackles $4M Hole in Budget. "Things are tough and only getting tougher when it comes to the state of the city's fiscal affairs." The San Luis Obispo Tribune, 6/13/03, State Cuts Threaten City Projects. "Sacramento's budgetary ax could threaten some of the Atascadero City Council's pet projects - downtown revitalization, road improvement and the Youth /Community Center, according to City Manager Wade McKinney." The Los Angeles Times, 6/13/03, Lawmak- ers Leave Budget in Limbo. "With less than four days to go before breaking the constitutional deadline to pass a state budget, California legisla- tors debated resolutions related to Father's Day and golf carts for less than an hour Thursday, then headed for the airport to fly home for the week- end." which could have decreased an additional 1.7 percent from Blue Shield's rate hike of 18.4 per- cent. Another recommendation called for increased copays for Kaiser member drugs from $5 to $10 for generics and $15 to $20 for brand -name prescrip- tions, which would have decreased Kaiser's pre- mium by about 2%. All in all, the CalPERS Board made minor changes that did not affect the premiums signifi- cantly. Public agencies have 60 days by June 19, 2003 to submit a resolution with their intent to pull out of the CalPERS PEMHCA program. Emergency regulations were passed that prohibited public agencies from re- entering into the system for 5 years once they decide to leave. What Should Cities Do? Know your options. Do your homework. Do not do anything out of frustra- tion. UNITEDfrompage1 *9664606660•e s e• As we enter the next stage of the budget process, we should expect the rumors of "raids" on other local governments' revenues to increase and, in some cases, to be accurate. I don't expect any of us can stop these ideas from being advanced. I can only stress that most local officials now appreciate that the true measure our success will be directly related to our ability to say "no" to proposals to raid each others' revenues in this time of scarcity. Old hands in the legislature remember only too well the "good old days" when they were able to pit cities against cities, cities against counties or special districts, and local governments against other groups. We have come so very far working and hanging together as a united coalition. So the next time someone says to you they can get you more revenue by taking it from your neighbor, I suggest tell them you've got bigger fish to fry and you know you will be needing your neighbor on the rocky road ahead. Short-term wins are just that —short- term. They also can be long -term losses. Thanks for all you do to support strong cities and a strong League. —Chris McKenzie, Executive Director Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS/PAGE 7