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<br /> , . <br /> 6.A,\ <br /> p R~7'o'>>R~iTmy Foe U S <br /> 0'" l,t'.t'~,<',^""IVt ,'1.,",0 !~LJ."I ,...,. j" 11.\1 Ad I. i ,I.;U'''~', 'I I <br /> January 9, 2004 <br /> Issue #1-2004 <br /> THERE THEY GO AGAIN! <br /> Hot Bills GOVERNOR'S BUDGET INCLUDES $1.3 BILLION ERAF SHIFT!!! <br /> Act Now The Governor released his 2004-05 proposed state budget today. Much to <br />. . . the dismay of city officials across the state, the Governor has chosen to take <br />. the time-tested course of using local government revenues to balance the state <br />. <br />. budget. Specifically, the Governor's budget proposes to shift an additional <br />. <br />. There are no Hot Bills $1,336 billion in property tax revenues from cities, counties, special districts and <br />. at this time. redevelopment agencies on an on-aoina basis to the ERAF accounts in each <br />. <br />. county to help defer the state's obligation for K-12 education funding. This <br />. Increase Is on tOD of the $6 billion in DroDertv taxes alreadv beina <br />. <br />. shifted to ERAF accounts! <br /> The $1.3 billion cut includes a $135 million cut to local redevelopment <br /> agencies with the remaining cuts being allocated among cities, counties and <br /> special districts based on their proportionate share of ERAF contributions. For <br /> cities, this cut amounts to an estimated $183 million. <br /> This is the wrong direction to go in balancing the state's budget. Mayors <br /> and Council Members across the state immediately registered their strong <br /> opposition to this proposal. It is wrong for all the following reasons: <br /> . Service Cuts/Fees/Taxes. The proposal is a shift of the state's budget <br />. deficit to local government that will in turn translate into service cuts and pos- <br />. sible fee and tax increases at the local level. <br />. <br />. <br />. . The Old Shell Game. It's a shell game with tricky maneuvers but <br />. <br />. predictable outcomes. Plain and simple. the state is taking local government <br />. money to balance a budget that they have been incapable of managing. Re- <br />. <br /> Want more details on storing VLF revenues with one hand isn't much help, if the other hand is picking <br /> these and other bills? the pockets of local government. <br /> Log on to the League of <br /> California Cities Web site Failed Policies Aaain. This is just more of the failed policies of the <br /> at www.cacities.orgl early 1990's when property tax revenues were first taken from local govern- <br /> legtracking. ments to plug holes in the state budget. That policy has contributed to housing <br /> shortages, increased fees for services and in many cases. significant cutbacks <br /> in services. California has been hurt by this approach. It was a bad idea in the <br /> 1990's and it is a bad idea today. For more, see page 2. <br /> Page 2 EARTHQUAKE PLACES EXTRA BURDENS ON CITY STAFF <br /> CFCC FUNDING FAIR TO BE HELD IN SACRAMENTO JANUARY 20 <br /> Page 3 SECOND UNIT HOUSING LEGISLATION DELAYED INDEFINITELY <br /> Page 4 LEGISLATIVE BILL SUMMARIES <br />