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7/l6/2004 3:14:37 PM � � I � <br /> ( � <br /> LOCAL GOVERNMENT REVENUE PROTECTION 4PTIONS <br /> Original Agreement LOCAL July 9 SCA 9(July 14) <br /> Compromise Democrat Proposal <br /> VLF Protection <br /> VLF Rate Protects VLF rate up to Protects VLF rate up to Protects VLF rate up to <br /> 0.65%. Sets the 0.65%. 0.65%. <br /> maximum VLF rate at <br /> 0.65%. <br /> Backfill Current VLF backfill Current VLF backfill Assumes current VLF <br /> swapped for property swapped for property backfill swapped for <br /> tax revenues. VLF tax revenues. VLF property tax revenues. <br /> backfill to resume if backfill to resume if VLF backfill to resume <br /> VLF rate is reduced VLF rate is reduced if VLF rate is reduced <br /> below 0.65% below 0.65% below 0.65% <br /> lncreases in Would require a vote of Can be done Can be done <br /> VLF the people. legislarively. Silent on legislatively. May be a <br /> whether can be a state state revenue. <br /> revenue. <br /> VLF Gap Loan Constiturionally Constitutionally Retains statutory <br /> Repayment required in 2006-07. required in 2006-07. repayment plan. No <br /> Explicit authorization Explicit authorization Constitutional <br /> to bonow against to borrow against authorization to borrow <br /> constitutional pledge. constiturional pledge. against repayment <br /> commitment <br /> Property Tax <br /> Revenues <br /> Agencies City, county, special City, county, special Total city, county and <br /> Protected district and district and special district property <br /> redevelopment agency. redevelopment agency. tax within each county <br /> lndividual agency share lndividual agency share explicitly protected in <br /> protected (includes protected (includes aggregate. No protection <br /> growth). growth). for individual agency <br /> shares. Redevelopment <br /> agencies not explicitly <br /> rotected. <br /> Borrowing Borrowing not allowed. Governor proclaims Governor proclamation <br /> Trigger "fiscal emergency." "severe state financial <br /> hardshi ." <br /> Borrowing N/A Supermajority vote 2/3rds vote — urgency <br /> Vote needed (e. .'/< or 4/Sths). measure. <br /> Borrowing N/A No more than 2 times No more than 2 times in <br /> Limits in 10 years. No loan if 10 years. No loan if <br /> outstanding loan. Cap loan outstanding. <br /> of$] billion at a time. <br />