HomeMy WebLinkAboutAgenda Report - August 4, 1982 (48)t
A 4
City Clerk Reimche presented the following letters of
information:
ITEMS OF a) Letter from Assembly, California Legislature signed
INFORMATION by Jim Costa, Richard Lehman, Pa trick Johnston regarding
displeasure with Adrian Giantul_::'s actions in her
refusal to begin work on major transportation projects
previously approved by Transportation Com ission as
part of the 1982 S.T.I.P.
h b) Letter from State Senator John Garamendi concerning
fiscal decisions made in 1982-83 state budget and
funding loca; governmental services.
c) Release f i-cmi Mayor, City of Norco requesting opposition
to SB 53 which was passed permitting the transfer of
property from one city into another without providing
an effective method for the de-annexating city to protest.
9
it 11
. ""fA—
T,
For Your Infornuitinn
Coln PI i ments of
ASSEMBLYMAN PATRICK JOHN." -ON
Nth District
California Legislature
Sacramento Addieu
Room 2111
Sute Capitol 95814
Telephone. (916) 445-7558
DistAct Offke
l l I I Fulton Mall. Suite 914
.---. C.Wornia 93721
Telephone: (209) 264.3078
Rt-C.FIVC'0
A I6.
t
COMMITTEES -3
Clu it man:
Housln A Commu-tit —,lv
RECEIVED
AssemWi,, M � 41
Talifornia ifle'��k�ft
!"t ODI
JIM COSTA
ASSENIBLYMAN.IHIRTIFTH LASIRICT
Mr. Michael Evanhoe
executive Director
California Transportation Corranission
I
1120 N Street
Sacramento, California 95814
Dear Mr. Evanhoe,
I ) , rr
Member:
Aviculture
Govcrnmcntri OIFstiration
Human Services
Select Committee on Agri-ultural
Fumigants and their A!:cinati,es
Select Committet on Enetsy
Alternatives in Apinilture
Subcommittee on the Mcdfly
Etadicauon Ptoject
July 16, 1982
We are writing to express our extreme displeasure with the recent
actions of Adriana Gianturco in her refusal to begin work on major
transportation projects that were previously approved by the
Transportaticn Commission as part of the 1982 S.T.I.P.
These highway projects are vital to providing safe roadways for all
Californians. While we do not demean the need to encourage mass
transit, the previously approved highway improvement projects should
proceed unobstructed by Gianturco's philosophical opposition to
freeway construction.
Any delay in commencing construction on these highway projects means
that thousands of lives continue to be needlessly endangered. We
are confident that the Commission recognizes the dire need to make
California's highways as safe as possible and will vote tc retain
funding for these freeway construction projects in the 1982 S.T.I.P.
We look forward to working with you and the Commission toward this end
Thank you for your con3ideration and swift action in this regard.
S ' ncerAy,
M STA RICHARD iiMAN AkTON
ember of the Assembly Member of the Assembly Member of the Assembly .
0th District 31st District 26th District
cc: Governor Edmund G. Brown, Jr.
Adriana Giantui co
Members, California Transportation Commission
Speaker Willie L. Brown, Jr.
President Pro Tempore David Roberti
Senate Transportation Committee Chairman, John Foran
Assembly Transportation Committee Chairman, Bruce Young
11
bi
OPn�ator Oo4y rRECEIMVIP,
OnjoritKrahrr
ALICE W REQ
Calif ornia 0 nate
July 13, 1982
The Honorable Fred Reed
Mayor, City of Lodi
221 W. Pine
Lodi, CA 95240
Dear Mayor Reed:
By now you are probably informed about the fiscal decisions,which
were made in the 1982-83 state budget. As in past years, funding
local governmental services was one of the more difficult decisions.
No two cities, counties, or special districts are alike, and thus
no single formula suits each well.
The allocation problem was compounded this year by the small size
of the revenue pot. Negotiating the budget in the Conference
Committee was a grueling experience. Massive savings amounting
to $400 million in Medi -Cal plus reductions in other programs
made it poesible to hold local program cuts to a minimum.
You will be receiving from the Department of Finance infor-aa-
tion on the amount of state support coming to the City of Lodi but
you may also be interested in the enclosed printout. These
figures compare the losses from state bailout computed according
to the various formulas involved. The figure in column 4 approxi-
mates the total reduction of state support for Lodi.
Many of you contacted me throughout the spring and summer when
budget items were discussed. Your information was helpful and I
appreciated receiving your phone calls and letters.
JG:mci
Enclosure
Sinr_erely,
State Capitol. Sacramento. Cahtorn+a 95814
G s COMPARISON OF FISCAL MUF IE10C110M ALTERNATIVES
Lpislrtt#t Aa41yst - bat
25, 1912
111
121
131
141
As 1
PER CA1114
No 1AILOUI
LDUEI OF
CIjt/[•ratr
ry-PAMA
FOSA .A
AnxT
(1).(21. DR (3)
i
wstcl
0219,715
•345,164
4147,919
•10,919
11C KAR EKE
#1
•175,491
♦1
41
COdNO
+619,237
•llb,70
#553,1542
-SSM 542
COLI'w
#349,567
4545,444
43SI,M
-319,567
5* TAM
#366,9#4
0818,196
•:23,:13
-386,944
CkW TERIACE
41
+161,:12
-0,721
$1
1 LCCA LIMA
•97,341
+22b,13
•71,034
-71,654
WNICLAIR
081,151
0458,594
#365,414
-365,414
IKE415
#79,174
W, 44
•61,929
-61,929
OM(t�IC
#1,393,711
#1,792,531
61,722,121
-1,399,711
t. X40 CU;A DILA
#2!1,111
41,113,246
+282,111
-282,198
IEDLAN S
•/11,171
9177,977
+1,141,130
-817,977
11:.10
0412,477
1795,953
#442,110
-412,677
f SAX KilwilMo
01,389,132
.2,375,610
0,191,114
•!,411,114
ltvu.6
.131,661
•152,171
�r9/,15/
-939,661
i V1iiL1�;11E
+1
+:92,073
-34,544
934,544
1.11 N ### 1
SAX WM MOTT
41,371,152
94,123,145
#6,171,573
-1,371,152
CA-SW11,121,119
•692,-41
+1,122,257
-691,893
C".LA VISTA
0,155,772
91,&42,7S5
#834,247
-134,247
C§. ".A: 0
•616,282
•375,171
9597,179
-373,171
KL Pu
1111,612
090,461
#111,195
-90,461
El WC4
-411,551
+1,454,771
6453,138
-69,131
[MaMm
#715,695
4l'M,175
•651,281
-659,283
iOUNIL IUCM
•2111,171
#446,141
4217,111
-217,911
LA ISA
4574,104
471,"4
#435,,41t
-435,4"
Lf1t:Y CIM
#141,01
#414,371
#11,216
-89,231
114U.11+1: E1T1
-413,657
#1,127,603
+213,724
-233,724
NEAPSIIE
41,444,141
•1,521,313
•1,713,671
-1,444,841
1liiT
•i
tm,on
H
to
S49 1IECO
+12,116;264
417,275,576
•11,612,571
-11,691,571
so AAPM
•113,412
#347,111
#It9,584
-113,02
SMEE
#1
41,163,455
#1
+1
VISTA
#439,399
+721,791
#473,471
-439,399
I##got of"
SAM iiAKISCO COUNTY
4,2/1,397
•1,721,179 -
#154,516,116
-1,721,079
S##m####
#✓JOACUU CDUIR't'
431,1116
#913,451
#0,753,207
-131,016
ESCLDM
#44,616
+62,467
#37,291
-37,231
• L0DI
0471,277
#692,271
+521,677
•521,677
CITY of NORCO
C: rY NALL 3954 OLD HAMNER TELEPHONE (714) 735.3900 P.O. BOX 428. NOReC760,
r49
July 22, 1982
82 DCD 241
Honorable Mayor and
City Council
SUBJECT: OPPOSITION TO SB 53
Gentlemen:
Recently the Norco City Manager wrote to your City
Manager requesting opposition to SB 53. Many cities
responded, but unfortunately 'the bill passed the
Assembly Committee and is now ready for Assembly
vote in early August, 1982. Therefore, we would
appreciate your quick response.
This bill will permit the transfer of property''from
one city into another without providing an effective
method for the deannexati.ng city to protest. The
bill is sponsored by development interest and has
great support from construction and labor arganiza
tions. They are using this bill as a precedent to
bring the State into local land use decisions regard-
ing residential development.
Attached are copies of a•:ticles that give further
insight into this matter. Would you please review
this matter with your Co11ncil and submit your
opposition to the Assemblymen and Senator representing
your area.
Sincerely,
,,•gip,... t,J ING
TcLON WILDP
Mayor, City of Norco
RSP: pke
Attachments
CITY COUNCIL
RON WILDFONG F. R. "PEAL" JONES NAOMI R. FEAGAN LORI GREGG STEVE M NATHAN
N.ayor Mayor Pro To— COUM610rMhn Counestwo m" cewKiiNWn
WESTERN CITY
Editor --Itat Stemmlce
Adrertisinx—Toioctte O°Rtica
Advtr. Consultant — Tcd McKey
$wines Manater -- Clark Goeckea
official Powicatwa of the
LL'ACUF:OF CALIFORNIA CITIFS
IQ
The Business Cycle And Investments In The Future
We have all been raised to accept the traditional "business cycle" as a fact of 1 ife
in a free economy, and one so predictable that it can almost be planned upon.
Directly related to this business cycle is a "legislative cycle" that has also become
predictable, but anathema to good government.
Put bluntly: when business is bad, legislators are easy. Government does not
wish to appear at fault when the private sector suffers its low cycle, and legislators
arc willing to do quite a bit to avoid creating such an impression.
This principle has been prominently demonstrated in the housing area, where
well-financed developers have used the virtual depression in housing in California
to their political advantage, hoping some legislative gains over local control of land
use will make the next boom a more profitable one.
Thus, development interests have found an ear for their proposal to limit local
rules requiring developers to dedicate land for local parks. Instead of the typical
five acres per thousand planned population, the Legislature would allow no more
than two and a half. Developers say fewer parks mean more houses for less money.
Planners say the money saved would be a tiny percentage of a house's total price,
and the cost in standard of living would be serious, if not measurable.
Ordinarily, such a bill would be referred to the Assembly Local Government
Committee, where the city interest would be weighed. With a housing depression
on, it has been referred instead to the Housing and Community Development
Committee and it appears unstoppable, short of a gubernatorial veto.
Another example: a plan to transfer 900 acres from one city to another — over
their objections --- because the owner claims more housing units will result. And
let's not forget last year's "new cities" bill to allow developments completely
outside local land use planning, all in the name of the housing crisis.
The state budget itself— a reflection of the seriousness of our current recession
--- shows how a cyclical business downturn can permanently alter the structure of
government, as the state usurps traditional local revenue sources for its own
immediate use.
Sacrificing the livability of tomorrow's communities to shore tip today's
corporate balance sheet or state general fund .stay be a predictable effect of the
business cycle on the legislative process — but it is not good government, and it's a
poor investment in our future.
Montoya Says Ike Wants More Housing, dot Colit.,7-t al✓ ions
By ROBERT FAIRBANKS, Timcs Staff Writtr
XRA`:ENTO—The author of a
cL �.r�rsial bill that would over-
ride 1 -zoning laws and benefit an
Orange County land development
firm said Tuesday that his only goal
is to sumiilatc housing construction.
Scn. Jcscph Montoya (D-Whit-
t;cr) said his measure is aimed at
rernovir.g "elitist" obst.,cics to
housing construction in Norco in
western liivcrside County.
The bila. which could change the
Norco city boundaries wit :out the
c::y's consent, is opposed by Norco,
the League of California C,ties and
tl c ic3a1awrs who represcrt the
Norco area. it is supported by con-
rtruct:on trade urton groups and
pub:;c interest law firms, which
contend that the proposed develop-
ment would help case housing
s ages for the poor.
know that I've gotten. a
pen:.. .in campaign contributions)
from +'rose guys (the developers)."
Moo' aya declared.
would assume they would be
p.ateful and they could cortr,bute.
out I'm going down the line because
of housing. That's 4,200 units," he
added.
Montoya's bill }:as stirred in-
CiCa51Ilg pUbllCity lately, ma;tly ne-
gauve. Not only :s the !cg:slat:on
cor,troversial because of :Ls Clea.-
special
learspecial interest. but the land devel-
opers who would benefit have an
unusual prominence.
The two. Richard Owen and
Robert Grant, were contra! to the
10^9 bribery conv:ctior. of former
Orange County supervisor Ralph A.
Diedrich. According :o testimony.
Diedrich asked for money from
Grant's development firm :n return
for helping to change an Orange
County zoning restriction.
The r cqucs:s were made to Owen
—a top emp!oyce of Grant—who
arran bc.i t.: rouf;ily $100.000 pay-
off. Nc::her Grant nor Owen was
charged :n :he Dicd. ich case.
Montoya said that he knew noth-
ing of Gwen and Grant's back-
ground when he ,;.reed to carry the
leg slrticn that •culd help them.
"they got acceas to my door
throc;h (lobby:,;,) John Witzel."
:•:o^toy:. said.
Lobbyist f:nanc.al roports show
0 -at fit'::ze:, who also represents the
c::y of San D:egc. received 55.000
from Owen and Crar.t last year a.
abet : , time Montoya took up the
pard tit':tzel ancthcr
S5.GwOC early In 1932.
:.canwhi!e. Owen and Grant also
arc paying, S5.000 a month to Geyer
Associates. a lobbying firm. The
firm. which specs::!:zc.c in housing
development leg:rlat:on. is .handling
Please sec BILL, rage "-
E0£ Antlele„sttlle:s
Wednesday, June 16, 1982
2 Part it/NVednesday, June 16, 1982 *
Mr,Lao Hr ou.s1n.g
Continued from First ragw,
the bill on a day-to-day basis.
The bill would a:low Owen and Grant to bead 4.000
homes on a SGS -acre parcel r:.r; ^ntly within the city of
Norco, with 25% of the d,ve1L'n;;s priced for low- to
moderate -income buyers. In effect. the measure would
change No.-co's boundaries, placing the parcel in the
neighboring city of Corona.
(The action would require Corona's approval. Owen _
and Grant have presented their pian to Corona officials.
but the officials have not said yet whether they want
the developnient.)
U: dcr current taw. Norco—whose le.ws would pre-
vent the devclop:ncnt—could veto such a "deanneta-
tion" proceeding. But the bill would abolish the city's
veto power.
Bud Plerder. Norco director of co.m;nunity develop-
ment, said Owen and Grant. who were not immediately
available for comment, own about 700 acres cf the par -
rcl.
Mender said he be:ieves the development, which
would include commercial properties, would have an
overall value of between SSG? million and S400 millfon.
If Owen and Grant took a "conservative" profit of I'tyo.
he said, they stand to make from S30 nul:!on to S40 mil-
lion. A spokesman for the developers said they paid
$3.000 per acre and have spent $750.000 on studies.
About SO acre: A the Norco land is owned by the
Church of Jesus Chr.st of Latter-day Saints. Elliott
Christensen, an investmert manager at church head-
quarters in Salt Lake City, said churcl: officials estirnat-
ed that the church lard, when developed, would have a
value of S'i0.000 an acre.
Norco officials contend that their city, population 20.-
000. is unique beeaasc of its rural life style and because
it encourages the raising of animals. Much of the city is
_hr racterized by half -acre lots on which others raise
swi:m. sheep, goats, cows, ra�bits and horses.
Although the arca is "rural." they said, it is not heli-
osis" New !calf -acre lot homes fall well below the mar.
ket
ar-
ket prices in Orange and Los Angeles counties.
e
The Sacramento Bee ��j�: byMcClATCHYNEW$PAPERS(-1', 1 -
)AMESMtC1A1CHY.,Aouuwa-o1&b~d
locally o—ntd and operofed for 121 yrw► \\ C. K. NC1A1CHY, rdfa, Pr►ed..+ '
JAMES MtCtATfHY, rr1'n 18571887 ` ERANK McCUttOCH. r.rcvAro+
.r rd
C. K. McCtATCHY, ed.for, prn-dmf. ;883 19J6 `— MKHAEI G. KIDUER, monop-p ed4or
WAITER P. )014[ S. rdlo+, !P)bl P71 PETER $012AG, rdfo.:ol popt rd:ror
ELEANOR MtCtATCHY, preµ 1PJb1P7d ROfSEAT MARXSON, /awn rd�or
Vol. 245 --No. 41.3D1 RONR1 AVRLY, p.n..ol�oncp«
Fr1dsy, May 21, ID82
Editorials
r S
monit%ayu UN40 Acres
Here's another slippery one. Sen. Joseph
Montoya of Whittier is sponsoring legisla-
tion, apparently for the benefit of one group of
developers. which would allow the transfer of
roughly 900 acres from one city In Riverside
County to another without the approval of the
city in which it Is now located.
•rhe arected pnrret, now within the city of
Norco. is owned by Orange County developers
Richard Owen nnd*Robert Grant, who want to
have It annexed to the adjacent city of Corona
where. It appears, they expect to get better
terms for a proposed high-density housing
development.
Under existing law, the gpproval of both
cities Is required when a parcel of land is
transferred from one to be annexed to anoth-
er. Under Montoya's bill, SB 53, which is
scheduled for a hearing before the Assembly
Committee on Housing and Community Devel-
opment next week, the city in which the land
Is now located would have no choice over the
transfer if the majority of the landowners in
the affected area ask for the transfer and if
certain other conditions are satisfied. Owen
and Grant are the only landowners in the af-
fected arca.
The backers of SII 53 argue that It's justified
house transfer of the Ower. -Grant land to
the city of Corona will provide more low- and
nioderate-income housing In the development
than the Norco City Council will permit. "I
don't think," Owen told a Riverside County
newspaper. "they should force their horse
co-,nmunity on us: They're afraid they will get
forced out of their horse comin.lnity if they
develop." The League of California Cities.
which strongly opposes the bili, argues, on the
other hand, that the measure Interferes with
local Land -use decl3lon_making and, n1though
it affects only one situation, sets a bad prec-
edent for others.
The league, of course. Is correct. It the Leg-
islature wants to encourage low- and
moderate -income housing deveiupment, there
are .far better ways to do It. This kind of spe-
cial Interest le islatton can only encouragf
other developers with political muscle to try
to coerce municipalities into more favorable
planning and. zoning decislons with the threat
that, it their demands are not met. they, too,
will run to the Legislature for a special deal.
• A year alto, the governor wisely vetoed
another odious piece of legislation drafted to
benefit a single Influential developer. One
hopes that this time the Legislature will save
him tha trouble. AB 53 Is the worst kind of
special Interest bill. It should be defeated.
i
M.:
.. 't
m
�' fir. .;s .d Ilhz;•► acA t rc;
t
ost of us are . ught from earliest
• childhood to p: v the game by the
rules, winning or losing as the case
night hr.
It Is unfair. we are told. to change Ilse
ales In the middle of the game so as to gain
r -me advantage over one's opponent.
'!'hove homilies
otwithstanding, t toc.of the
apitol's more frequent
rgislative situations „_•
evolves just that sort of j
rlid-game rule changing. '
Someone loses
Practising. usually money.
)i xmome sort of local
Iralitical or economic duel Wolters
;land then hies himself to Sacramento. cash In
i,and. to hire a lobbyist. spread around some
acre and gain some advantage over the
i. sumphant toe.
One of my favorite examples occurred a
sar or to ago when a bunch of junk dealers
they prefer the name "auto dismantlers")
dot tired of losing out on bids for wrecked
}•:,rs to lierse,nlwhr► wanted to restore the
t achlnn. They prevailed upoa an
isw'rtshlymaa h, carry IrKlsirstitin flint. In
Sited. probibitt•el the r"Istrens from bidding
;n the wrecks. The bill was dropped aftrr it
.tile publicity.
l.lkewtse. some garbage collection
'olnpanks who held contracts from cilles
M41 mattes and didn't want to jrt�paridre
them through competitive bie:ding persuaded
the politicians to eliminate the bidding
requirement In the law. •ilia! one made it
through the proccss.regardlrxs of pultlielty.
The most active Icgl lativc rude changers
have been land developers who have run up
against a growing reluctance of local
governments to approve their achemev.
The most celebrated case. which surfaced
Last year, Involved South^rn California
developer Nathan Shapell. who used his
position as chairman of a stale housing
commission to promote legislation that
bypassed local government to authorise
creation of up to five "new cities."
Not so coincidentally. Shapell had one
such project that had run afoul of local
opposition In Ventura County.
The new cities bill became the most
controversial piece of legislation In the 191ti
session and was only kltled by a veto from
Gov. Brown, who originally had agreed to
sign It but knuckled under to press pressure.
That experience has not. of course. soured
the appetite of developers and others with
ftnAnrinl interests to cnhntrr aur r,ale-
changing campr.tgns In Socramenta.
Tfska. for In%lmtrr. a lithe bill itriig
shuffled through the procc%% by %ear. Joscpi:
Montoya. who represents a district in the
east side of Los Angeles.
The Montoyn bill. SItS.'t, would ,flaw the
itobvrt 11. Grant Co. of Newhart Reach to
deitich neurly I.tNto acres (rens Norco. a
er Monday, June 14, 1
small tianitrrnardlin, t•uunh• city. awl
reattach Ow properly to an attl:ereut city,
Corona.
Norco has cefused to approve Grant's
plans for a 400-hou<e subdivision on the
property. It says that Is too dense and w -aid
put too match of a strain on Its utilities.
Grant hired two velrran lobbyist-, Johs.
theca and t,e.yer A'smi lairs. Ir% "work** the
bili. which Is currently residing its five
Assembly's ilowing and Community
mvcinpment Committee.
Nhrsl the nse e. -un- cams before fix-
committee
incommittee for a hearing recentiy. it was
apparent that the lol,ttyists Isad alae their
preparatory spadework well. The somewhat
naive repri•sentatives of Norco, led by
Mayor Tion Wildfoag, were berated and
bait:•d by committee members who had beta
prepped by the proponents of the bill.
"were noised of having an etlllat. _
anti -growth altitude. Osie reporter covering::
the matter for a San hernarrf4no newi4paper:
termed ft. In print, ..at legWallva version of
gang rape."
The Montoya bili would set aside a long-
standing provision of state law that requires
tha consent of a city before property can be
detached from Its boundaries. Under the bill.
only the owners of the affected property—to
this cngr Grant— wraAd have err derlxlnn-
makhvg power.
Chu.t;ing the rules of any gasnt• while if's
atlti ln•lal; swayed I . of cnurrr, an I" athtn
to anarchy. it the gate Is lxltitics and public
p:it!.ry. It sinspty means that wh,x-ver has the
most money aunt "itw It prevails.
Dan Walters b; clifel of 77tr tlnit►n .e
Coldlof hurt art.
- tAcwwwMrO •DOR[f4
Aak
STATE CAPITOL
SACRAMENTO, CA 96814
19161 4A"390
pHrIMCT ADDRESS
8671 5U0WP" BOULEVARD, 1lIT! 1608
N0 Lr1M000. CA 96029
l213I 4841176
REPLY TO;
D D1SnacT OSCE
D sACMASWNTO OFPtCc
11
STATE SENATOR
DAVID ROBERTI RECEIVED
PRESIDENT PRO TEMPORE
1901 JUL 27 AM I 1
Talifornin legislature
AUC M. REIMCFI
TWENTY-THIRD DISTRICT ;CITY CLEft
Los ANGELES COUNTY &TY OF LODI
July 26, 1982
Alts. Alice M. Reimche, City Clerk
City of Lodi
P.O. Box 320
Lodi, CA 95241
Dear Ms. Reimche:
CNA111MAN
SENATE RLLES
SELXCT CM464 TTEE ON SMALL
DUOR45SS ENTMMM" S
COMMfTTIMS
SLOCT10"S AIVD
REAPP06'T10MMENT
I`V9lMANCE AND !N014MN1T7
1ART
Thank you for your concern regarding the proposed reductions in state assistance to local
agencies.
This year's budget was one of the most difficult problems facing our state. Given our
current economic condition, it was not possible to grant any cost -of -living adjustments to
state programs or state employees. Additionally, we were forced to reduce post -
Proposition 13 assistance to local agencies by $269 million. The Governor's budget
proposed a $450 million reduction which would hmte taken nearly all of local agency
revenue growth. The final budget will take slightly more than one half of the growth in
local discretionary revenue.
Late in the budget discussions, o proposal was made in the Assembly to run the "Deflator"
mechanism which would have wiped out all of the state subventions to local government.
The effect would have bes-n "reverse bailout" -- we would take more revenue than
provided in Proposition 13 assistance. Additionally, this would have given the state a
surplus of over $1 billion. The Senate Leadership took a strong position Inst allowing
the Deflator to operate. Instead, it was our view that a reasonable rc in state
subventions was preferred so long as it did not exceed post Proposition 13 assistance.
It is important to note that long term Proposition 13 state aid, embodied in the shift of
property tax from schools to cities and counties, remains. This is worth 5350 millivp in
property taxes to local agencies. The 1982-83 budget did not change this basic policy.
For the first tirr►c since World War 11, the state is going to spend less money than it did in
the prior fiscal year. Our revenue for next year is expected to grow at less than 1%. We
are forced to do what local agencies have been doing the last two years -- reduce
progroms and services. Although there was pressure to end the post -Proposition 13
assistance and finance cost -of -living adjustments for other state priorities, it has been our
view that the maintenance of the property tax base is for more important to local finance
even though. it requires year-to-year reductions in state subventions.
July 26, 1982
Page Two
For the long term, we must avoid an annual debate about the amount of reduction in state
subventions. Instead, we must begin developing long term changes in our public finance
system which will provide maximum local flexibility in the delivery of local services.
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DAVID ROBERTI
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