AgdaPkt 2004-01-12 - Laserfiche WebLink

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GA~l \lLJF 1frlll11 ~I! 1 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · . . . . · . . . · . . Legislature Questions Use of Section 27.00 is a continuous appropriation and no further legis. lative action is required, The Governor referenced Section 27.00 of the 2003-04 Budget Act as a basis for his actions. What should city officials do in light of this Chesbro's letter asserts that the Section 27.00 controversy? Most city officials we talk with are authority is a "limited delegation of legislative moving cautiously in this tenuous environment. powers to allow the Administration to address That seems to a prudent course of action. Certainly unexpected circumstances after the passage of the no major commitments to new programs or spend. budget." The letter goes on to argue that this ing should be made during the remainder of at section is " . . . intended to allow adjustments to least this fiscal year. Some group with a stake in spending amounts. consistent with the Legislature's state general fund programs could challenge the policy objectives as reflected in the annual budget. Governor's actions. It is not clear if the Legislature It is not intended to provide an alternative to the plans to move beyond the objections in the Joint regular budget process for changing policy deci- Legislative Budget Committee letter and take its sions," The letter further argues that the own legal action. Governor's action does not meet the criteria for an "emergency" and that no "specific evidence" has City and county officials have done a good job been put forth that justifies the use of this authority. of making the Legislature aware of the political Under this Section 27.00 authority in the budget consequences of taking action to cut or jeopardize local government funding. Reneging on the state's act, the Governor argues that he can make a commitment to backfill VLF cuts will be a difficult "deficiency appropriation" to meet the obligation to vote for any Legislator. That doesn't mean we're pay the VLF backfill. The Joint Legislative Budget home free. Nothing is safe as long as the Legisla. Committee letter argues to the contrary that a ture is in session. deficiency appropriation only allows the Administra. tion to "spend at a rate which would necessitate an The next stage in this "dance" that will play out additional appropriation" and that to make the over the next 6 months is the Governor's proposed appropriation for this purpose" . , . requires the 2004-05 state budget. He is scheduled to release Legislature to approve an appropriations bill by that budget sometime around January 9~. The March 1, 2004." budget proposal should clearly indicate where the What Next on VLF Payments? Administration stands on continued VLF backfill payments or some other alternative for local gov. It is no surprise that the Legislature is unhappy ernment funding. with the Governor's actions. The letter from Sena- Local Services Need Constitutional Protection tor Chesbro was expected and sets the groundwork for further debate on this issue when the Legisla- The lesson in all of this for local government ture returns in January. officials is that the only way to put local government back on a course of fiscal stability is to pass a In the meantime. the Administration is moving constitutional protection measure on the November ahead with its plan to honor its commitment to local 2004 ballot. If there was ever any doubt about government. It is our understanding that the De- proceeding with a ballot measure, the uncertainty cember 26~ payment of VLF backfill revenues to generated about VLF funding in recent weeks the counties for the social service realignment reinforces the need to place some reasonable program was made and that the scheduled January restriction on the Legislature's ability to use local 10 payment to cities and counties will also be made government revenue as its personal ATM machine. on time. Consult the CITIPAC website (www.citipac,oral or your regional representative for more information It is also reported that the Administration plans on how you can help with this effort. to continue making VLF backfill payments after the March 1st deadline referenced in the letter from Senator Chesbro because the VLF backfill revenue PAGE 2/PRIORITY FOCUS Visit the league's Official Web Siteuwww.cacities.org