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9, A -2 BUDGET from page 1 • • • • • . • • • • • • • • • ANNUAL CONFERENCE from page 1 Of greatest interest to cities, the Governor signed the bills implementing the "triple flip" (AB 1766) and giving the state the ability to secure bonds to finance $10.7 billion of the budget defic;t (A137x). The League remains opposed to the "triple flip ", which reduces a '/2 cent of local sales tax, increases the state sales tax by a'' /z cent, and dedicates that increased state tax to the debt payment on the bonds. Local governments are reimbursed on a dollar for dollar basis from the ERAF property taxes. The League continues to encourage the legislature and administration to review the poten- tial for using state, not local money, to finance the bonds. However, we are also scrutinizing the details of the legislation to ensure that, should it remain in place, the impacts on cities are mini- mized. This could be accomplished through "clean -up" legislation this year. Not yet signed is AB 1768, the bill that requires the state to repay the Vehicle License Fee (VLF) gap (estimated at $825 million) to cities and counties in 2006. This bill provides up to $40 million in funding to local agencies that qualify as "hardship cases", as defined by the bill. The State Controller is working to develop a procedure to identify the hardship cases, and determine how to allocate the $40 million. These details will not be made public until the bill has been signed into law. The provision to stop the backfill payments, however, was part of the budget bill signed by the Governor. As a result, the VLF payments due on August 8 will include only the money received by the state from vehicle owners, and will not include any backfill payments at this time, even for those local agencies that might qualify as "hardship cases" under AB 1768. The Legislature is scheduled to reconvene on Monday, August 18, after which time the proposed cuts to redevelopment agencies (RDA) will be resolved. SB 1045, passed by the Assembly, contains a $135 million shift of funds from RDA's to the state. It is pending concurrence in the Senate. This year, it's especially important for all cities to be well represented at the conference because of the severe fiscal situation that the state and cities are facing. Attendees will be dealing not only v4th the continuing issues of planning for and managing local services that directly respond to the needs of their residents; they will be helping shape the very future of city -state relations as well. The League is deter- mined to work toward securing a stable and predict- able revenue base and authority for local government that will radically restructure the relationship between the state and cities. Our task is summed up in the conference theme: "Saving Local Democracy." While the conference focuses on correcting the serious financial conditions faced by cities and the state, it also addresses many other topics of emerg- ing and continuing importance to city officials in all departments. Program sessions will provide the latest information and resources in areas such as housing, public safety and security, personnel issues, technology, internal administration concerns, planning, public works, legal affairs, community services, economic development and leadership skill building. More than 60 subjects will be covered during the four -day meeting. We know that city budgets are tight. The League will help you get the most out of your conference dollar by offering training, information and contacts that will enable you to leverage what you've learned into year -round cost savings and long -term solutions to fiscal challenges. REGISTER NOW! 2003 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE September 7 —10, 2003 Sacramento Convention Center • To register online and view a preliminary conference program visit: www.cacities.org /ac or call 916- 658 -8291 ■ PAGE 2 /PRIORITY FOCUS Visit the League's Official Web Site-- www.cacities.org