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9..M I July 25, 2003 Issue #29 -2003 ort 490 raic cities Page 2 BOARD OF EQUALIZATION COMMITTEE TAKES UP BUSINESS TAXES Page 3 NEW TASK FORCE ENCOURAGES LOCAL INVOLVEMENT Page 5 LEAGUE COMMENTS ON PROPOSED ARB RULES GRASSROOTS ADVOCACY Page 6 LEAGUE BOARD ADOPTS WATER QUALITY TASK FORCE ISSUES REPORT LOCAL UPDATE Page 7 DON'T MISS THE AUGUST ISSUE OF WESTERN CITY MAGAZINE THE BUDGET CRISIS - SOME PRESS QUOTES Page 11 LEGISLATIVE BILL SUMMARIES ATTACHMENT: EDITORIAL -LOSS OF VLF HURTS LOCAL GOVERNMENTS SENATE LEADERS ANNOUNCE BUDGET DEAL Late Thursday afternoon Senate leaders Burton and Brulte announced that Hot Bi I IS they had reached agreement on a 2003 -04 state budget package. As described by the senators, this proposed budget reflects the much talked -about "get- out -of- ■ ■ ■ ■ Act Now town - budget," satisfying GOP demands for program cuts and no new state taxes, ■ and Democratic insistence that the budget should protect programs that serve the AB 1426 neediest Californians. As anticipated, it relies heavily on the "Triple Flip" or "Flip (Steinberg). Sacra- Flop" sales - property tax swap as a means of assuring the financial community that ■ mento Region. the state can sell deficit reduction bonds on the market. For more, see page 8. Affordable Housing ................... . •Standards. Position: Oppose. LEAGUE BOARD VOTES UNANIMOUSLY TO SPONSOR INITIATIVE SS 196 (Kuehl). In what many members described as a historic vote, on July 19, 2003 the board of directors of the League of California Cities cast a unanimous roll call Regional Water vote to develop and sponsor a proposed constitutional amendment that would Board. Position: check the power of the state government to balance the state budget by ■ Support/Sponsor. confiscating local tax funds that pay for police, fire, EMS, infrastructure main- tenance, park and library services. The measure would be placed before the ' SB 440 (Burton). voters by initiative in November 2004. For more, see page 4. ■ Employer - Employee Relations. Law . . ... . . - - - ■ Enforcement Offic- CALTRANS OUTLINES TEMPORARY FUNDING PLAN ers and Firefighters. Position: Oppose. On July 10, 2003, Director Jeff Morales, Department of Transportation ■ (Caltrans), informed transportation contractors that the ongoing failure of the legislature to pass a budget raised the likelihood that Department of Transpor- tation would have insufficient cash in the State Highway Account (SHA) to cover ongoing commitments after July 20, 2003. The cash flow problem is exacer- Want more details on bated by the fact that without a budget the State Controller has determined that these and other bills? Highway User Taxes will not be transferred to the SHA or to cities and counties. Log on to the League of On July 31 the SHA is due approximately $193 million; cities and counties are California Cities Web site due approximately $91 million from the 18 -cent state gas tax collected each at www.cacities.orgl month at the pump. For more, see page 4. legtracking. Page 2 BOARD OF EQUALIZATION COMMITTEE TAKES UP BUSINESS TAXES Page 3 NEW TASK FORCE ENCOURAGES LOCAL INVOLVEMENT Page 5 LEAGUE COMMENTS ON PROPOSED ARB RULES GRASSROOTS ADVOCACY Page 6 LEAGUE BOARD ADOPTS WATER QUALITY TASK FORCE ISSUES REPORT LOCAL UPDATE Page 7 DON'T MISS THE AUGUST ISSUE OF WESTERN CITY MAGAZINE THE BUDGET CRISIS - SOME PRESS QUOTES Page 11 LEGISLATIVE BILL SUMMARIES ATTACHMENT: EDITORIAL -LOSS OF VLF HURTS LOCAL GOVERNMENTS