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_J A- 3 INITIATIVE frompage1 ••••• ••••••••••••••••••••••••••••••• Local Funds Drained for Higher State Spending. Since 1991 more than $30 billion of local property taxes have been drained from cities, counties and special districts -- costing cities alone $800 mil `on in FY 2003 -04 and $6.9 billion the last 12 years. even in years of state budget surpluses, the state has used these funds to finance its constitutional funding obligation to public education, allowing it to increase state general fund spending for other state programs. This has come at the expense of vital local public safety and other services. state's duty to reimburse in a timely way for a new mandated program or higher level of service, protecting local governments from hidden cost shifts. Allows local governments to opt -out of certain non - workplace safety and employee proce- dural rights mandates if the state fails to pay in a timely way. For More Information. Contact Chris McKenzie, Executive Director (916- 658 - 8275); Mike Madrid, Public Affairs Director (916- 658 - 8272); or Dwight Stenbakken, Deputy Executive Director (916- 658 - 8232). State Shifts Costs to Local Governments. In recent years the state also has shifted costs for state - sponsored programs and delayed constitu- tionally required reimbursements to local govern- ments for state mandated programs and services. In the last two fiscal years, the state has "deferred" over $1 billion in constitutionally required reim- bursements to local governments for mandated services and programs. This cost burden is then paid with local taxes that should be used for impor- tant local services Constitutional Protection Needed Now. The League has joined forces with the California State Association of Counties (CSAC) and the California Special Districts Association (CSDA) to sponsor a ballot initiative in November 2004, entitled the Local Taxpayers and Public Safety Protection Act, to put the voters in charge of whether local tax dollars should be used to fund state services. It will not raise taxes. It will not repeal laws the state has already passed. It will not require the return of property taxes already taken nor affect funding of schools. It will not prevent structural reform of the fiscal system — simply require that structural changes be planned collaboratively by state and local leaders and approved by the voters. The initiative will do two simple things: • Public Vote Reauired. Require approval by a majority of the electorate before a proposed state law may take effect that reduces the sales, property and VLF funds of cities, counties and special districts. Flexibility is provided to reduce the VLF and replace it with substitute revenues (i.e., a "backfill ") without voter approval; and How to Make A Contribution. The League has established a political action committee (CITIPAC —ID # 1254399) for contributions to this initiative. For more information, contact 916 -658- 8273, email info(o�citioac.ora or go to www.citioac.oro, Revised October 30, 2003 PALOS VERDES ESTATES CITY MANAGER CALLS ON EMPLOYEES TO BECOME "MASTERS OF OUR OWN DESTINY." Last week, the City of Palos Verdes Estates held a series of city employee meetings to discuss city issues, with the League's ballot measure at the top of the list. City Manager James Hendrickson used his time to discuss the state fiscal crisis and it's impact on the city saying, "...in my 31 years in local government, this is probably the most significant issue that has ever faced us." Hendrickson went through a short history of the most recent budget cycle and it's impact on city services and jobs. Hendrickson offered a preview of the coming year and informed staff about the continued uncer- tainty of the VLF and other revenue streams through the state, saying, "I think we run a very lean opera- tion. I don't want to have to cut. But I need your support. We have an opportunity to change this bleak scenario; and a chance to be masters of our own destiny." With that he turned the presentation over to his local Regional Representative, Ann Marie Wallace, who discussed the League's efforts to place an initiative on the November, 2004 statewide ballot. • Reimburse for Mandated Costs. Clarify the Present at the employee lunchtime meeting was Continued on Page 6 Visit the League's Official Web Site-- www.caci ties. org PRIORITY FOCUS /PAGE 3