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__- _ //.A-3 THE LEAGUE SUPPORTS PROPOSITION 53 ,.._ Assembly Constitutional Amendment 11 (ACA 11, Annual transfers into the Infrastructure Fund Richman 2001-2002), will appear on the October would be made in four installments: August 1, No- 2003 statewide ballot as Proposition 53. If the guber- vember 1, February 1, and, May 31. The transfers in natorial recall election is postponed, as signaled by Fe�ruary and May wilt 5e adjusted based on revised the recent 9" Circuit Court ruling, Proposition 53 will revec�ue estimate in the ; iovernor's Budget and the then appear on the March 2004 Ballot. Govenor's May Revision. The League supports Proposition 53 because it So, how much money would be available for would provide a much-�eeded, dedicated revenue infrastructure projects? If one assumes the annual stream to fund the repair, maintenance and construc- general fund revenue growth after 2002-03 is about tion of Califomia's badly underfunded infrastructure. 5%, then the amount set aside for the infrastructure It does this by establishing the Califomia Twenty-First would be about $950 million in 2006-07. Assuming Century Infrastructure Investment Fund, with regular no reductions or suspensions, this would grow to transfers of specified percentages of the state gen- about $4.4 billion in 2015-2016, and increase eral fund. The legislature would allocate the Infra- thereafter by $30 million for every $1 billion in general structure Fund for capital outlay purposes: 50 fund revenue growth. percent for state-owned infrastructure and 50 percent for local government infrastructure (excluding school For more information visit the Transportation, Com- districts and communiry colleges). munications and Public Words issue page on the League's website at www.cacities. cow. The General Fund Transfers: How They Work LEAGUE GRADUATES 125 The proposition provides for an initial 1% state FROM MAYORS AND COUNCIL general fund transfer to the Infrastructure Fund, beginning either in 2006-07 or in the first year there- ME�ER$ /�C�E� — after when general fund revenue growth exceeds The League's Mayors and Council Members inflation plus 4%. The transfer increases by 0.3% Academy held its graduation ceremony at last annually until reaching 3% of general fund revenues, week's Annual Conference, recognizing 125 city which then becomes the ongoing transfer amount. officials for their com�letion of one or more of Proposition 53 provides that the increase in the the Academy's three levels of leadership train- general fund transfer percentage would be delayed in ing. any year that general fund revenues do not increase by inflation plus 4%; and that the increase in the The Mayors and Council Members Academy transfer percentage would be accelerated in any year is designed to offer leadership development to that general fund revenues increase by more than both newly elected and estabiished city o�cials. irflation plus 8%. The Academy offers training in basic and ad- vanced leadership, as well as its top-tier Lead- Proposition 53 states that the percent of revenues ership in Action program. transferred to the fund shall not exceed the difference between 7.5% and the prior fiscal years bond debt Joe DiVito, Mayor of Ojai and graduate of payments as a percentage of general fund revenues the Leadership and Action program, acclaimed for that year. The amount of the annual transfer will the Academy as "a strong motivator," adding be reduced by the amount of sales tax revenue on that, "iYs a segment of the League that provides vehicles that would be diverted for infrastructure an excellent opportunity to become more in- pursuant to Proposition 51. Finally, if the percentage volved and learn from your colleagues across growth in the minimum Proposition 98 guarantee the state." exceeds the percentage growth in general fund revenues, the transfer would be reduced by one-half For more information on the Academy and of that dollar difference if none of the other triggers to levels of participation, please email reduced the transfer, except if the Proposition 51 mca@cacities.org. reduction, are in effect in that fiscal year. Visit the League's Official Web 5ite--www.cacities.org PRIORITY FOCUS/PAGE 3