HomeMy WebLinkAbout23 OPPOSE STATE BUDGET DECISIONS 08-05-08AGENDA REPORT
MEETING DATE: AUGUST 5, 2008
TO: HONORABLE MAYOR AND MEMBERS OF CITY UNCIL
FROM: WILLIAM A. HUSTON, CITY MANAGER
SUBJECT: OPPOSITION TO FISCALLY IRRESPONSIBLE STATE BUDGET
DECISIONS THAT WOULD "BORROW" LOCAL GOVERNMENT,
REDEVELOPMENT AND TRANSPORTATION FUNDS
RECOMMENDATION
That the City Council adopt Resolution No. 08-55.
BACKGROUND
Councilman Bone requested that Resolution No. 08-55 be considered by the City
Council in light of discussions in the State Legislature about diverting additional local
government income in order to balance the State budget.
Based on the latest estimates, the City of Tustin would lose approximately $3.2 million
in income in fiscal year 2008-09 if the State enacted the "borrowing" provision of
Proposition 1 A.
RESOLUTION NO. 08-55
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, OPPOSING FISCALLY
IRRESPONSIBLE STATE BUDGET DECISIONS THAT
WOULD "BORROW" LOCAL GOVERNMENT,
REDEVELOPMENT AND TRANSPORTATION FUNDS
WHEREAS, on July 1, 2008 the State Legislature missed its Constitutional
budget deadline; and
WHEREAS, both the Governor and the Legislative Budget Conference
Committee have recommended balanced budgets without resorting to "loans" or
seizures of local government property tax, redevelopment tax increment and
transportation sales tax funds; and
WHEREAS, in 1952 the voters of California approved Article XVI, Section 16 of
the California Constitution, providing for tax increment financing for community
revitalization-not balancing the state budget, and the voters never authorized the
legislature to take or "borrow" community redevelopment funds for state programs; and
WHEREAS, in 2004 by an 84% margin of approval the voters of California
approved Proposition 1A and sent a loud and unambiguous message to state leaders
that they should stop the destructive and irresponsible practice of taking local
government funds to finance the state budget and paper over the state deficit; and
WHEREAS, in 2006 by a 77% margin of approval the voters of California also
approved Proposition 1 A, providing similar protections to transportation funding for state
and local transportation projects, including important street maintenance and public
transit programs; and
WHEREAS, both ballot measures allow the Governor to declare a "severe state
of fiscal hardship" and "borrow" these funds if they are repaid in three years with
interest, but the Governor believes it would be irresponsible to "borrow" such funds
because it would deepen the state's structural deficit and cripple local government and
transportation services; and
WHEREAS, refusal by the Legislature to carry out its constitutional obligation to
compromise on a balanced budget is not a "severe state of fiscal hardship" and would
not justify reductions in critical local services, community revitalization programs and
infrastructure maintenance at a time when cities are struggling to balance their own
budgets during this economic downturn; and
WHEREAS, city investments in infrastructure, affordable housing and basic
public safety and other community services will create needed jobs and speed our
economic recovery; and
WHEREAS, the Legislature should balance the state budget with state revenues
and respect the overwhelming support of voters for not using local property taxes,
redevelopment tax increment and transportation sales tax funds to fund the day-to-day
operating cost of state programs; and
WHEREAS, it would be the height of fiscal irresponsibility to paper over the state
structural deficit with more borrowing, and Californians deserve state leaders who will
tell them honestly what needs to be done to produce a balanced budget; and
WHEREAS, it is time for the State of California to cut up its local government
credit cards and deal with the budget deficit in a straightforward way and balance the
state budget with state funds;
NOW, THEREFORE, BE IT RESOLVED, that the City of Tustin hereby opposes
any and all efforts by state government to "borrow" or seize local tax funds,
redevelopment tax increment and transportation sales tax funds by the state
government to finance state operations. Such a move would be fiscally irresponsible for
the state and hamper effective local services and infrastructure investments.
RESOLVED FURTHER, that the Mayor/City Manager is hereby directed to send
this resolution and communicate this Council's strong and unswerving opposition on this
matter to our Legislators and the Governor along with an expression of our continued
appreciation for the Governor's and any supportive legislators' steadfast opposition to
further borrowing or seizure of these funds.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
held on the 5th day of August 2008.
JERRY AMANTE
Mayor
PAMELA STOKER
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council
of the City of Tustin is five; that the above and foregoing Resolution No. 08-55 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 5th day
of August 2008, by the following vote:
COUNCILMEMBER AYES
COUNCILMEMBER NOES
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT
PAMELA STOKER
CITY CLERK