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�� BUDGETf pagel ................................................ The passage of Proposition 57 lays a more Initiative on the November ballot. This mea- secure foundation for the 2004-05 state budget sure will require a vote of the people before any delib �rations. Budget negotiators can now put more local govemment re;<enue can be shifted for that p�Rion of the deficit financed with the "deficit state purposes. It also stop; any dart��ging bonds" rehind them, but producing a balanced budget action in the 2004-05 budget wh ,n the 2004-05 budget will still be a challenge. measure passes in November and requires any further locat govemment takeaways to be ap- As a reminder, the Proposition 57 bonds are proved by the voters. financed through a'/. cent reduction in the local Bradley-Bums sales, which is then reenacted at This explains why the LOCAL initiative is so the state level and dedicated to retiring the critical to the future economic heatth of cities, bonds. The sales tax loss at the local level is counties and speaal disVicts. Remember, iYs replaced on a dollar-for-dollar basis by property about money, but iYs also about RESPECT! We taxes shifted from schools to cities and counties. can lobby our legislators on the budget — and we plan to do so. We are again working closely with Now, the Budget our LOCAL partners (the Cal'rfomia State Associa- tion of Counties and the Califomia Special Dis- With the eiection behind us, city officials need tricts Association) on plans for a united Legislative to refocus on the Governor's budget proposals, Action Days in Sacramento, May 12 and 13. particularly the proposal to shift $1.3 biilion in city, county, special district and redevelopment But until we are successful in strengthening agency property taxes for state purposes. This the constitutional protections for local revenues, proposal is completely unacceptable and needs we know that legislators can and will take or to be opposed at every opportunity. (See "Why borrow local funds and shift new responsibilities to the League Opposes the Governor's Pro- local govemment without paying for them. posed ERAF Shift" for talking points.) ThaYs why we're urging all city o�cials to The politics of the 2004-05 budget process get involved NOW with this effort. To find out are going to be difficult for local govemments. how, please contact your League regional repre- The Republican caucuses in both houses will sentative. Sign up to give a few hours of your likely support most, if not all, of the Govemor's personal time to help coliect signatures on Super approach to resolving the budget deficft. After all, Signature Saturday, March 13. (See related he is their Govemor. There wili certainly be article.) enough Democrats to vote for the budget be- cause as long as money is being taken from Remember, city officials may not participate in local government this will help to protect other ballot measure advocacy using public funds. To programs of higher priority to those two cau- find out more, please review the "Legal Do's and cuses. Don'ts for City O�cials", posted on the Initiative page on the League's website (www.cacities.ora/ Finally, and the most obvious, the Govemor initiative . will likely stick with most of his proposals. This leaves few, if any, to defend local govemments. Be sure to visit the campaign website at www.orotectlocalservices.com, for fact sheets, LOCAL Initiative the Best Budget Strategy news clips, press releases and other background materials. Our post-election message is very clear: The most effective budget strategy for the 2004 05 budget is the passage of the LOCAL PAGE 4/PRIORITY FOCUS Visit tl�e League's Official Web Site--www.cacities.org