(June 25, 2009) -- LB Mayor Bob Foster has joined in signing a letter from the Mayors of CA's ten largest cities to CA Governor Arnold Schwarzenegger and the Dem and Repub leaders of the state Senate and Assembly that criticizes portions of a budget proposed by the Dem majority on a 10-member conference committee that included state Senator Alan Lowenthal (D., LB-Paramount).
The letter doesn't mention Sen. Lowenthal or any Conference Committee members by name...but does criticize the product advanced by the Committee's Dem majority that included Sen. Lowenthal.
"On behalf of the largest cities in California, we write to express our strong disappointment in the Conference Committee action to pursue a two-year sweep of the local share of Highway Users Tax Account (HUTA) dollars," the Mayors' June 16 letter states.
The Mayors prefer that Sac'to take local government funds through Prop 1A -- which must be repaid to cities -- instead taking the gas tax money...which cities believe must be repaid while some Sac'to lawmakers believe it may not have to be repaid.
Mayor Foster and his colleagues state in their letter:
We understand that the unprecedented budget crisis means cities must be part of the solution. However, borrowing from local government is preferable to any proposal that diverts tax revenues from cities. Any plan must be structured to get the money back into our coffers quickly -- we want to partner with you on developing such a plan.
Our willingness to sacrifice on the state's behalf does not, and cannot, represent a new revenue stream or a blank check for the state...
Before you make final decisions on using local gas tax, or property tax, or transportation funds to balance your budget, we respectfully ask to be an active partner in negotiations so that we can ensure the protection of our residents and cities.
On June 18, City Manager Pat West provided a memo to members of the City Council's State Legislation Committee. detailing the potential consequences to LB of some of the budget proposals then being floated or that have been discussed in Sacramento.
Among the items cited in the memo is the action of the Conference Committee (which included Sen. Lowenthal) in proposing to shift $350 million in Redevelopment Funds to be provided to education for three years...which LB city management says would equate to a $6 million annual impact to LB's RDA for three years.
To view city management's briefing memo, and the letter signed by Mayor Foster and his fellow big city Mayors, addressed to the Governor and the two top Dem and Repub legislative leaders in the Assembly and Senate, click here.
On June 24, the Assembly and state Senate voted down a Dem proposed FY10 budget...with some Dems defecting from their party leadership on the vote. Via SacBee.com: "Democrats' Budget-Balancing Plan Crashes And Burns".
That means the budget plan will almost certainly change in some respects before another floor vote, expected in the coming days.
Meanwhile, State Controller John Chiang warned yesterday (June 24) that if state lawmakers and the Governor fail agree on a FY10 budget balancing plan by next week, he will begin paying CA's bills using IOUs instead of checks on July 2. Via SacBee.com: "Absent a Budget Fix, IOUs On the Way"
