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HomeMy WebLinkAboutAgenda Report - December 3, 2003 I-01AGENDA ITEM I •0 1 ACh CITY OF LODI COUNCIL CGMMUNICATION TM AGENDA TITLE: State Budget Update MEETING DATE: December 3, 2003 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: That the Council receive a verbal report from the City Manager regarding the State of California budget. BACKGROUND INFORMATION: At the request of Mayor Hitchcock, this item is placed on the agenda to allow for State budget updates. As has been portrayed in the media, Governor Schwarzenegger "rolled" back the Vehicle License Fee (VLF) promised during his campaign. The net effect to cities is still unknown and may not be determined for some time. The City of Lodi budgeted to received approximately $3.5 million in VLF. Included within the $3.5 million is the approximate $2.3 million as the backfill. Attached for Council's information is the most current information from the League of California Cities dated November 25, 2003. FUNDING: None JKISI Attachment Jan S. Keeter Dep ty City Manager APPROVED: Dixon League of California Cities Page 1 of 3 Search for: Frequently Requested Inf ` ® Look for a California City iE7 Today is Tuesday, 25 November, 2003.It is 2:02 PM. Good afternoon! Vies IN THIS SECTION News and Information > Newsroom > News Updates > Governor Rolls Back "Car Tax" • Legislative Advocacy Home Governor Rolls Back "Car Tax" • Legislative Search • Grassroots Network -- Cities Urge Legislators, Administration to Keep VLF Promise t • League Home Local Services WHAT WE DO Posted: 11/21/03 • Issues and Advocacy • News and Information It happened with breathtaking speed. On November 17, almost immediately followi • Education, Conferences, swearing-in ceremony, Governor Arnold Schwarzenegger fulfilled his campaign pri Networking back the "car tax". He issued an Executive Order rescinding the June 20, 2003 lett • Products and Services Director of Finance that reinstated the full VLF and eliminated the VLF offset (also MEMBER LOGIN the "backfill") from the State General Fund. The order also directs the Department Vehicles to reinstate the General Fund offset to the VLF provided by state law and Username: taxpayers all overpayments of VLF as a result of the June 20 increase. Password: The same day, the Governor called an extraordinary session of the Legislature to c a March 2, 2003 general obligation deficit bond issue; (2) a March 2, 2004 constitu ® spending lid; and (3) "To consider and act upon legislation relative to funding the c Forgot Your Password? motor vehicle license fee from the General Fund." Create Member Login The Governor also called two other extraordinary sessions, one to repeal SB 60 (C which authorizes illegal immigrants to obtain California drivers' licenses, and work( compensation reform. (See "League Will Support Governor's Workers Compensati Proposal") IMMEDIATE IMPACT ON LOCAL SERVICES Cities and counties faced an immediate loss of almost 70 percent of their vehicle li funds for the rest of the fiscal year -- for cities, approximately $105 a month. Stunr officials realized that unless the legislature acted immediately on the Governor's re fund a backfill, they would need to implement budget cuts. Budget Committee hearings in the Senate and Assembly did little to allay local gov concerns. Democratic legislators complained about the lack of details from the Adr on what cuts the Governor would support to fund a VLF backfill, or how he would s proposed $15 billion bond deficit financing bond. Senate President John Burton co tell reporters and others that he would wait for the Governor to identify cuts to fund By Friday the question of cuts was still hanging, but Senator Jim Brulte tackled the issue head on by introducing SB X5 1(first bill, 5th Extraordinary Session), appropr billion to keep city and counties services funded. The urgency measure does not a question of cuts. NEXT STEPS FOR CALIFORNIA CITIES http://www.cacities.org/doc.asp?id=7904 11/25/2003 League of California Cities Page 2 of 3 It is vitally important for city officials to contact their legislators and the Governor, a them of what an almost 70 percent cut in VLF would mean in lost city services. Ple information with the League about where your city would cut personnel or services using this information in responding to press calls and it's very helpful in discussior legislators and the Administration. The League is working with our LOCAL coalition ("Leave Our Community Assets L organize a press conference in Sacramento, possibly timed to coincide with key ac Senator Brulte's SB X5 1. Participation by police and fire chiefs and officers is part) important. You will hear more about this press conference through your League red representative in the days ahead. LOCAL ACTIONS URGED It is vitally important during this period for city officials to tell their city story at the Ic The voters strongly support rolling back the VLF. They support Governor Schwarz( action, and will continue to do so. Our goal at this time is to urge legislators and thi Administration to keep the promise made to local government in 1998, by apprc funds needed to protect local services. City officials can help deliver this message, educating their employees, citizens and the press about cuts the city would have tc state fails to keep its promise on the backfill. Specifically, we ask city officials to do the following: 1. Contact your legislators and the Governor immediately. Tell them wha- in your city, and the cuts that you will be forced to make – or are making — legislature does not act quickly to keep its promise to keep these services 1 passing SB X5 1. (Click here for a a city -by -city chart showing the monthly to your city. Need a sample letter? Visit the League' Advocacy Center) 2. Arrange a meeting with your employees to inform them of what the loss mean to your city. Inform them of the city's and League's efforts to educate about local services and the possible implications of the cuts. (Remember these sessions informational; you may not ask employees to advocate by c their legislators, the Governor, or engaging in other advocacy activities.) 3. Organize a public forum or emergency council meeting to educate you and the press about what the loss of VLF will mean to your city. Explain wl• city is forced to consider. Take public comment, and encourage public disc with the employees, inform the public of your city's efforts to educate legisl, the impact of the loss of VLF. Local press coverage can be very important story about how important it is to keep city services funded. (Remember th; only inform and educate citizens; you may not ask them to write or call thei legislators.) 4. Organize a local press briefing to explain the cuts the city is facing. Have thoughtful, candid, factual conversation; we need reporters and editors to L what's at stake for city services. Include public safety officials and other de heads to help explain what the cuts mean in terms of specific programs an, 5. Keep the League informed of cuts that your city is considering. We are al accumulate this information to share with the press, legislators and the Go, Email information to Megan Taylor, League Communications Director, tele) 916.658.8228. CONCLUSION http://www.cacities.org/doc.asp?id=7904 11/25/2003 League of California Cities Page 3 of 3 We are in a unique period with respect to the VLF. The voters have spoken: they d pay these fees. But the Governor has clearly indicated that he understands that thi an obligation to keep local services funded. Legislators must be reminded of this o and convinced that — tough as it is — they must keep the state's promise to backfill local services. This crisis demonstrates without a doubt the need for our proposed Local Taxpaye Safety Protection Initiative on the November 2004 ballot. Local services are on the continue to be vulnerable until the state has to be more accountable to the voters f that harm local services. We urge you to act now on the requests made in this memo. Look for more commt the days ahead. Watch our website for updated communications. • Senator Brulte's Press Release on SB 5X 1 -PDF Home • Search • Contact Us • Site Map • Employment • Newsroom • Li This site is best viewed using Internet Explorer 4.0 or higher. Click here to download its la1 Copyright ©2001 League of California Cities. All rights reserved. Privacy Policy. Terms & Con( Last Updated: Friday, November 21, 2003 http://www.cacities.org/doc.asp?id=7904 11/25/2003