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I I.A, 71 ASSEMBLYREPUBLICANSfrom page l •••• ••••••••••••••••••••••••••••••• Assembly Speaker Wesson announced Wednesday that in order to give legislative coun- sel sufficient time to draft the budget language reflecting this proposal (amended into SB 1043), the Assembly will convene a special meeting for full debate on Sunday, July 6, at 4 p.m. Association of Counties shows about $526 million in cuts to local services. The plan also incorporates $2.2 billion in new federal funds received by the state, and a 6 -year financing of a $10.7 billion deficit bond using existing revenues (not specified). This new plan provides an alternative budget with a strong emphasis on protecting local govem- ments, and the League welcomes the focus on structural reform. While the plan alleviates many of the critical city cuts provided in other plans, this new plan also incorporates a reference to "pro- tecting local revenues" –a key League priority and goal – although no details on the protection proposal were available at this time. In particular, the new Assembly Republican proposal: • Does not "raid" any of the state's Vehicle License Fee (VLF) backfill (and doesn't raise the VLF fees either). • Does not include a shift from redevelop- ment rAssociations to ERAF. • Does not include any unallocated cuts to cities. • Preserves full funding for critical categori- cal programs such as COPS and booking fees. While the documentation that accompanies the budget plan suggests that local governments don't get cut at all, we have identified some cost shifts and cuts to cities and counties. Among them is a reduction in the Public Library Fund. In addition, it rejects the suspension of Proposition 42 transportation funding, but replaces it with a $938 million loan from TIF to the state general fund. Health and human services programs admin- istered by counties also take some cuts. Among the most direct hits to counties: a 20% reduction in Medi -Cal administration ($110 million) and a proposal to borrow county CALWORKS incentive funds ($100 million). All told, initial analysis of the proposal by the League and the California State QUOTES from page 7 ••••••••••••• "We must put the state back on pay- as -we-go this year and not slip further into mortgaging our future." The Ventura County Star, 7/01/03, Legisla- tors Must End Partisanship on Budget. "The state budget has become a political problem. It is no longer only a fiscal problem. I am dismayed at the level of partisan bickering and grandstanding while California sinks further into crisis. I am confident that a solution can be reached if we can break through the party labels and superheated rhetoric and work together to move this great state forward." The Modesto Bee, 7/01/03, Pressure State Reps to Hurry Up and Pass a Budget. "The message elected officials need to hear is this: If they cannot or will not act constructively on behalf of state residents, voters will excuse them from power." The Santa Rosa Press Democrat, 7/1/03, Extremism, Two- Thirds Rule Combine to Create Gridlock. "Forty-seven other states manage their finances without requiring two- thirds majorities — and without the chaos and humilia- tion that California will experience in the coming days." The Los Angeles Times, 6/26/03, George Skelton: Once Again, the'Dance of Death.' "They're doing the 'Dance of Death' again in the Capitol. It's the ritual that each year kicks off the legislators' summer budget season." Sacramento Bee, 7/1/03, Daniel Weintraub: Continued on Page 11 Visit the League's Official Web Site• "www.cacities.org PRIORITY FOCUS /PAGE 9