AgdaPkt 2003-07-14 - Laserfiche WebLink

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FLIP -FLOP from page 1 • • • • • • • • • • • 4 BROWN ACT from page 1•••••••••••• The Governor and state legislators have been working for weeks on proposals to finance part of the state deficit through the issuance of deficit reduction bonds that would be retired from the proceeds of a proposed '/2 cent sales tax. Repub- lican lawmakers have consistently refused to support the tax increase proposal, suggesting instead that the deficit financing be backed by an equivalent amount for an existing revenue source. Recent proposals from the Assembly and Senate Republican caucuses envision deeper cuts and financing part of the budget deficit by dedicating part of existing revenues. (See related story: "Assembly Republicans Release New Budget Plan "). On July 2 two credit - rating agencies, Moody's and Standard & Poor's, notified the state it was in danger of having its ratings lowered still further in the months ahead if a state budget is not adopted that balances spending and revenues. The Gover- nor also announced that Lehman Brothers had advised state officials that it will be unable to sell its revenue anticipation notes if a budget is not adopted by July 15. The Attorney General's Office advised the Department of Finance on May 29 that any use of an existing state revenue source to finance the deficit reduction bonds would likely violate Propo- sition 98, the state constitutional guarantee for education. This is because existing revenues are part of the base of revenues that existed at the time of voter approval of Prop. 98. In fact, one of the reasons for the Governor's /] cent sales tax proposal is to establish a new, dedicated source of revenue to finance the repayment of the deficit reduction bonds. The details of the flip -flop proposal are un- known, but League staff and city officials have been told by various state officials that it would allow the state to collateralize the repayment of the principal and interest on the deficit reduction bonds with a totally new source of state revenue — while making cities and counties whole through a "reverse ERAF" payment. Some sources League President and Oakland City Attorney John Russo was the guest speaker at the noontime event, held at the Sacramento Bee as part of a daylong working session on open access to government for California newspaper editorial writers. Senator Debra Bowen spoke earlier to the group about freedom of information issues and the California legislature. Russo's talk focused on the importance of open government to preserving the principles and values of local democracy – a key goal of the League. "As an elected city attorney, and a former council member, I know from personal experience how tough it can be to live up to the standards of open government," he said. "Yet I believe that government belongs to the people," he continued. "They are the'shareholders' in our municipal corporations. They ought to have full knowledge of what is being done in their names." Russo's talk was followed by a lively panel discussion of the history of the Brown Act, provided by four individu- als with board experience with the Brown Act • Richard "Bud" Carpenter, former League General Counsel who helped write the Brown Act 50 years ago and lobbied for its passage. • Michael Hams, a former reporter with the San Francisco Chronicle, who wrote a series of articles 50 years ago ("Your Secret Government ") that provided the impetus for the Brown Act. • Rich McGee, President of the Cal'rfomia First Amendment Coalition. • Hon. Quentin Kopp, San Mateo County Superior Court Judge and former State Senator, authored the first major overhaul of the Brown Act in 1994 Approximately 30 editorial writers from newspapers throughout the state attended the session, which was also videotaped by the Cal Channel cable station. It is expected to be aired on the Califomia Channel on Friday, July 4, at 10 a.m. Continued on Page 10 PAGE 8 /PRIORITY FOCUS Visit the League's Official Web Site-- www.cacities.org