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CITY SERVICES from page I ......................................... Votes Fall on Backfill Restoration balanced budget amendment,ACA5x 5 (Orepeza). If approved by the Senate, both There were two efforts last night in the measures will be presented to the voters at the Assembly to address the need for VLF backfill, March 2004 election. The written ve~ sion of the by suspending the rules to bring AB 5x 3 (Cox) deficit bond funding package was not ~vailable to and AB 5x 7 (Lowenthal) to the floor for debate us before the vote, but Jenny Oropeza ~D-Long and action. Both of these measures appropri- Beach), chair of the Assembly .Appropriations ate over $3 billion to backfill local governments Committee, described it as up to a 15-year for the VLF revenue loss. The first effort, led by financing, based on the ~triple-fiip" arrangement Assembly Member Shirley Horton, failed (33- with a dedicated revenue source (1/4 cent of the 40) on a largely party line vote. Assembly sales tax). The term of the financing is estimated Member Ray Haynes led the second effort, and to be 8 - 9 years, if accumulated revenues in the it also failed (33-42) on a largely party line vote. proposed General Fund reserve account estab- (See "How Did Your Legislator Vote on VLF lished in ACA5x 5, called the Budget Stabilization Backfill?") Account, are also dedicated to debt service payments. Informal reports from the afternoon caucus of Assembly Democrats indicated that John What Next? Burton, President Pro Tem of the Senate, had appealed personally to members to resist any Over the next few weeks, it is critically impor- effort to approve the VLF backfill measures, tant for city officials to stress to their legislators Why? It appears that local services are being and local media that the lack of a VLF backfill is held captive to partisan politics: the thinking is intolerable. While legislators are taking a holiday that, at the end of the day, the Republicans break, the loss of this revenue is forcing severe would never vote for a tax increase to avoid cutbacks in public safety and other services in deep cuts to health and social service pro- cities throughout the state. It is especially grams, but that they might approve tax in- important for elected city officials to speak creases to head off cuts to public safety and out about this problem! Don't leave the other local services, tough messages to your city manager alone. While this game plays out, cities and coun- Detail the cuts your city faces. Make it real. ties are losing about $355 million each month - Your city is facing an intolerable situation - a almost $12 million each day. While city offi- severe slash in funds for vital services, and cials statewide have done a terrific job of complete uncertainty about when and how it will making the need for VLF a highly visible issue, be restored. little, if any, action is expected on the VLF backfill issue until January. Remind them that cities and counties are the ONLY interest group that has experienced mid- year cuts as a result of the state's current fiscal Bond Package Relies on ¼ Cent Local crisis. NO OTHER GROUP OR ORGANIZA- Sales Tax "Triple-Flip" TION HAS SUFFERED MID-YEAR CUTS. And the cuts to local government were the cuts of While refusing to address the fiscal crisis funds that the constitution dedicates to cities and now hitting cities and counties, the Assembly counties -- not a cut of state funds. Tell them its did act overwhelmingly, however, to begin unacceptable for them to be home taking a addressing the state's fiscal crisis by approv- holiday break with the state's promise not yet lng a deficit bond funding package, AB5x 9 kept - threatening the safety and well-being of (Orepeza) and a proposed constitutional the residents in your city. (See "VLF Talking Continued on Page 5 PAGE 4/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org