IN THIS ISSUE: April 10, 2009
Issue #14-2009
Page 3: L.A.’s New Redevelopment Project Shines
Page 4: What Is Your City Doing to Survive the Economic Downturn? Western City Magazine
Wants to Spread the Word!
2010 City Managers Conference – Call for Topics & Speakers
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
LEAGUE OF CALIFORNIA CITIES’ BOARD
SUPPORTS PROPOSITIONS 1A-F
The League of California Cities’ board of directors on Monday, April 6, took formal action to
support Propositions 1A-F on the May 19 statewide special election ballot. These measures are
supported by a broad coalition of prominent statewide business, taxpayer and public safety
groups as well as a bipartisan group of current and former state and local elected officials.
For more, see Page 2.
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LEAGUE OPPOSES AMENDED AB 155
Send Your Opposition Letter by April 17
The League has been opposed to AB 155 (Mendoza) since its introduction in January. This
legislation would require that a local public agency seeking to file bankruptcy obtain approval by a
state agency. The bill was amended March 27 and the League remains opposed because it
would still impose an unnecessary procedural burden on local agencies, thwarting a city’s
authority to manage its fiscal affairs. For more, see Page 2.
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LEGISLATIVE ACTION DAYS SCHEDULED FOR APRIL 15-16 IN SACRAMENTO
It’s Time for City Voices to be Heard in the State Capitol
The League of California Cities’ annual Legislative Action Days are scheduled for April 15-16 in
Sacramento with events being held at the Sheraton Grand Sacramento Hotel.
For more, see Page 3. 2
‘Props. 1A-F’ Continued from Page 1…
The board action came after the League’s Revenue and Taxation Policy Committee
recommended support last week by a three-to-one margin. Three-fourths of the votes cast by
board members supported the board’s action.
The board concluded that this action is of critical importance to protecting city revenues,
furthering infrastructure investment and rebuilding California’s state and local economies. Prop.
1A, the board concluded, offers the prospect for long-term fiscal reform and stability for state
government as the new, less vulnerable rainy day fund is filled over the years.
The board also voted to support Props. 1A-F because we can’t afford to stop our state and local
infrastructure projects at a time when jobs and capital investment are critical to our recovery. If
the propositions fail, it will only deepen the state’s cash crisis and many of these projects will
likely come to a halt.
The League’s leadership made the following statements on the organization’s support of Props.
1A-F:
League President Judy Mitchell, mayor, Rolling Hills Estates, endorsed the action, praising her
colleagues. “Our board had a very spirited and respectful debate, representative I suspect of the
one that is going on across California. As city officials, our most important job on state financial
matters is to protect local government revenues. The difficult decision to support these ballot
measures reflects our conviction as city leaders that the short-term and long-term interests of
cities and the entire state will be better served if these measures pass,” said Mitchell.
“Cities have long maintained that the state should face up to its fiscal challenges by making the
tough choices required to balance the state budget with state funds rather than irresponsibly
taking or ’borrowing’ local funds needed for vital community services. These ballot measures and
the budget they implement represent a bipartisan effort that reflects this philosophy at a time
when city services are already being cut deeply due to the recession,” continued Mitchell.
Ken Cooley, League first vice president and vice mayor, Rancho Cordova, observed: “These
ballot measures reflect solid, bipartisan progress to achieve state budget reform and greater
financial stability for our state. For me, the bottom line is that ultimately city public safety,
transportation and other essential local services will be more stable if the state’s finances are
more predictable. That is why I believe it’s critical to support these ballot measures.”
League Second Vice President and Hemet Council Member Robin Lowe underscored the
infrastructure and economic benefits of the plan during this time of economic recession. “We
simply can’t afford another state cash crisis that stops critically needed infrastructure projects
dead in their tracks. These badly needed construction projects create valuable jobs and address
serious needs in our communities that will provide long-term economic benefits for cities and our
state.”
_____________________________________________________________________________
‘AB 155’ Continued from Page 1…
AB 155, as originally drafted, required that a municipality seeking to file bankruptcy to first get
approval from the Local Agency Bankruptcy Committee (LABC). This committee, which has not
been created, would be comprised of the controller, the treasurer and the director of the
Department of Finance. AB 155, as amended March 27, would require that a municipality obtains
approval from the already existing California Debt and Investment Advisory Commission
(CDIAC).
CDIAC is currently comprised of the following officials:
• Bill Lockyer: California State Treasurer and chair
• Arnold Schwarzenegger: Governor
• John Chiang: State Controller
• Dave Cox (R-Fair Oaks): State Senator 3
• Carol Liu (D-Pasadena): State Senator
• Anna Caballero (D-Salinas): Assembly Member
• Ted Lieu (D-Torrance): Assembly Member
• Jose Cisneros: Treasurer and Tax Collector, city and county of San Francisco
• Jay Goldstone: Chief Operating Officer, city of San Diego
Take Action
The League has drafted a sample opposition letter for AB 155 as amended for cities to use. The
bill will be heard in the Assembly Local Government Committee on April 22. Opposition letters
must be submitted by Friday, April 17 at 5 p.m. so it is imperative that opposition letters be sent
immediately.
The sample opposition letter can be found on the League’s Web site at
www.cacities.org/billsearch. Type AB 155 into the search function to pull up the letter.
_____________________________________________________________________________
‘Legislative Action Days’ Continued from Page 1…
Join your colleagues to learn the latest on issues such as the budget, federal stimulus funding,
state infrastructure bonds and cash flow. Legislative Action Days are also a prime opportunity to
meet with state legislators and deliver the message of the importance of providing local services.
Co-sponsored by the League and the League’s Latino Caucus, there is a special panel
discussion on Wednesday, April 15 from 3-4:30 p.m., which will focus on legislative and budget
reform.
Wednesday’s events conclude with the legislative reception. Invite your legislator to join you and
your colleagues at the Sheraton Grand Sacramento from 5:30-7 p.m.
Make plans to attend now. For more information about the 2009 Legislative Action Days, please
visit www.cacities.org/events.
_____________________________________________________________________________
L.A.’s New Redevelopment Project
Shines
Completed in fall 2008, the L.A. Live
redevelopment project dazzled city officials
and League Partners in Los Angeles last
week for the League’s policy committee
meetings. This behind the scenes tour was an
opportunity for them to see a project which
has radically altered a once blighted area.
The new project is a mix of restaurants,
nightclubs and entertainment venues
anchored by the Nokia Theater and the 1,000-
room J.W. Marriott hotel. The L.A. Live
campus is located adjacent to the Staples
Center. Palmdale Mayor Pro Tem Steve Hofbauer led the tour. Hofbauer is a senior fire inspector
for the city of Los Angeles and has worked throughout the fire safety certification process with the
Anschutz Entertainment Group (AEG) which developed and managed the project. The tour
included visits to the Conga Room, Nokia Theater, Club Nokia, Target Terrace and the brand new
ESPN west coast studio.
During Hofbauer’s presentation, attendees learned how downtown Los Angeles is evolving into
an entertainment and conference hub. AEG’s goal was to create a safe family-friendly
environment. Along with the goal of attracting increased conference business to the city, the hope
City officials on the L.A. Live tour see first-hand the benefits
of redevelopment in downtown L.A., including the Nokia
Theatre. 4
is that concert and sporting event attendees will now have a place to spend an entire evening and
will spend their entertainment dollars in Los Angeles.
The L.A. Live project is an example of how public-private partnerships can drive economic
recovery. The benefits of redevelopment projects are multifaceted. The redevelopment phase
stimulates the economy by putting people to work both locally and in other regions through
products purchased to complete the project. Next, the completed project transforms what was
once a downtrodden area into a safe and welcoming place with new business and vitality.
Redevelopment funds, as city officials know, are a key component to strong communities.
_____________________________________________________________________________
What Is Your City Doing to Survive the Economic Downturn? Western City
Magazine Wants to Spread the Word!
Cities throughout California are implementing a wide range of programs and steps to help cope
with the economic crunch. Is your city doing something creative or innovative to help survive the
downturn? If so, the Western City editorial team wants to hear about it for a series we are
developing.
Send a brief description (up to 500 words) to editor@westerncity.com.
Items are due by June 20.
_____________________________________________________________________________
2010 City Managers Conference – Call for Topics & Speakers
The League of California Cities is looking for innovative, cutting-edge topics and speakers for the
2010 City Managers Conference. Scheduled for Feb. 3-5, 2010 in Carlsbad, the conference hosts
350 attendees including city managers, city administrators, assistant city managers,
administrative or management analysts, count chief accounting officers and council of
government directors.
If you are interested in submitting a proposal please visit www.cacities.org/events or download
the form from the League Web site.
(http://www.cacities.org/resource_files/27846.CM%20Call%20for%20Education%20Session%20I
deas.doc) The City Managers Department Meeting Program Planning Committee will review
proposals fully completed and received electronically by 12 p.m., Friday, April 24. (Fax or mailed
submissions will not be accepted).
Please send your proposal or e-mail any questions to League of California Cities Education Team
at education@cacities.org.
_____________________________________________________________________________
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
Visit (and bookmark!) the League’s Legislative Resources Web page
(www.cacities.org/legresources). You’ll find a roster and contact information for the League’s
legislative staff; the online Bill Search program, background materials on lobbying your
legislators, and more.
_____________________________________________________________________________
IN THIS ISSUE: April 24, 2009
Issue #15-2009
Page 6: Prop 1B Local Streets and Roads Payments to Cities Restart, Next Allocation Still Uncertain
Supreme Court Weighs in on Local Agency Ballot Measure Activities
Page 7: Governor Announces the California Federal Economic Stimulus Task Force
Page 8: California Energy Commission Workshop on ARRA Fund Disbursement
Apply Now for the 2009 Waste Reduction Awards Program
Decision-Making Guide Available in Spanish
Page 9: Job Opening? Western City Magazine Can Help You Find the Best Candidate
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
VALLEJO MAYOR TELLS ASSEMBLY LOCAL
GOVERNMENT COMMITTEE AB 155 IS DISASTROUS
Vallejo Mayor Osby Davis delivered riveting testimony against AB 155 (Mendoza) during the
Assembly Local Government Committee hearing on Wednesday, April 22. Opposed by the
League, this bill would give a state commission without expertise in this area the authority to
determine whether or not a local entity could file for bankruptcy. The League opposes AB 155
because it removes the fundamental decision making power of local communities.
For more, see Page 2.
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CITY OFFICIALS DELIVER THE MESSAGE OF FISCAL RESPONSIBILITY AT
LEAGUE’S LEGISLATIVE ACTION DAYS
There was one main message delivered during the League’s Legislative Action Days last week:
budget stability at the state and local levels is critical for economic stability. More than 300 city
officials came to Sacramento on April 15-16 to lobby in the Capitol and hear from Gov. Arnold
Schwarzenegger and other top state officials who all addressed budget and fiscal matters.
For more, see Page 2.
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PANEL TACKLES STATE GOVERNANCE REFORM AT
LEAGUE’S LEGISLATIVE ACTION DAYS
The question of state governance reform is attracting increasing attention from a number of
groups in California and that was the topic of a special discussion during the League’s Legislative
Action Days. Co-hosted by the League’s Latino Caucus and moderated by Fresno City Council
Member Henry Perea, the April 15 afternoon session featured an impressive panel of experts.
For more, see Page 5. 2
‘AB 155’ Continued from Page 1…
Sponsored by the California Professional Firefighters Association, the hearing on AB 155 was
packed. Supporters of the bill argued that local governments will wrongfully use bankruptcy as a
means to obstruct employee contract negotiations. The City of Vallejo’s bankruptcy filing in 2008
was the focus of much of the discussion in the Assembly Local Government Committee hearing.
Cities finding themselves in dire financial positions would have another hurdle that could block
their use of federal bankruptcy with the provisions of AB 155. Since 1949, only three
municipalities in California have filed for Chapter 9 bankruptcy protection. AB 155, as written,
overlooks the immediate debt relief necessary in a fiscal crisis as provided under Chapter 9,
which could pose major problems to local agencies.
Mayor Davis told the committee that he ran for office understanding that Vallejo faced some very
serious fiscal challenges including the potential for bankruptcy. The mayor expressed his
commitment to not just Vallejo but the city’s employees who are responsible for delivering vital
services to residents. “I am concerned about the totality of our city, concerned about paving our
streets, libraries, senior citizens. We had no reserve, we still have no reserve,” said Mayor Davis.
AB 155 passed out of the Local Government Committee on a four-to-three vote and now goes to
the Assembly Appropriations Committee. The members who voted for the bill are: Assembly
Member Anna Caballero (D-Salinas), Assembly Member Mike Davis (D-Los Angeles), Paul
Krekorian (D-Burbank) and Nancy Skinner (D-Berkeley).
The League wishes to thank the Assembly Members who voted against this bill. Those members
are: Juan Arambula (D-Fresno), Stephen Knight (R-Lancaster) and Mike Duvall (R-Brea).
Assembly Member Juan Arambula (D-Fresno) commented that he had received an overwhelming
number of letters in opposition to AB 155 from his district and contended that he could not
support the bill in its current form. Although Assembly Member Mike Davis (D-Los Angeles) voted
for the bill, he said he did so with reservations. He said that he is concerned that the state may be
held liable to creditors in the event that the agency charged with this task (the California Debt and
Investment Advisory Commission) denies a municipality its request to file bankruptcy.
Along with Mayor Davis, a number of other city officials came to the Capitol Wednesday to testify
against AB 155, including Loomis Council Member Miguel Ucovich, Roseville Council Member
Jim Gray, Colusa Council Member Kay Hosmer, and Paradise Council Member Woody Culleton.
Take Action!
City officials are urged to send in letters of opposition to their legislators and to the office of Gov.
Arnold Schwarzenegger. A sample letter can be found on the League’s Web site at
www.cacities.org/billsearch. Type “AB 155” into the search function to locate the letter.
City officials with additional questions can contact Natasha Karl, League legislative analyst at
nkarl@cacities.org or Dwight Stenbakken, deputy executive director at
dstenbakken@cacities.org.
_____________________________________________________________________________
‘Legislative Action Days’ Continued from Page 1…
“We want our partners at the state to know that a responsible state budget is balanced with state
means not local government revenues. We are making tough decisions, having to make cuts,
implement layoffs and more to balance our budgets,” said League President Judy Mitchell in her
opening remarks at the Sheraton Grand Sacramento.
3
President Mitchell spoke about the
League’s support of Propositions
1A-F on the May 19 special election
ballot. “We know as city officials
that city public safety,
transportation and other local
services will be more stable if the
state’s finances are more
predictable. Passage of the
propositions means that we can
focus on getting important
infrastructure projects back on track
and infuse our economy locally and
at the state level,” said President
Mitchell.
League staff prepared a one-page
document for city officials to use in their legislative meetings outlining the most important issues
to press. Under the headline “Balancing Our Budgets and Reviving Our Economy,” the key
messages for Legislative Action Days were:
• Balancing our budgets and reviving our economy has to be job #1;
• Responsible leadership is a must for recovery;
• DO NOT TAKE LOCAL FUNDS: balance the state budget with state resources;
• Maximize economic development incentives; and
• Demonstrate restraint on new programs, mandates and fees.
While prepared for Legislative Action Days, these messages continue to be relevant as the state
faces its deficit. The issue paper is available on the League’s Web site
(http://www.cacities.org/resource_files/27917.2009IssuePaperFINALFINALFINAL.pdf ).
Legislative Action Days featured an impressive list of speakers at the general sessions
Wednesday and Thursday mornings and the panel on state governance reform Wednesday
afternoon. Please see “Panel Tackles State Governance Reform at League’s Legislative Action
Days” on page 1.
Assembly Member Noreen Evans (D-Santa Rosa), a former city
council member, spoke during the
general session on Wednesday and
acknowledged that the Legislature’s
decisions have local impacts.
Senate Republican Leader Dennis
Hollingsworth (R-Murrieta) also
acknowledged that the decisions he
and his colleagues make affect cities.
The Republican leader told the
audience that while the budget
crafted in February did not borrow
local funds and he remains
committed to the state’s partnership
with local government, he was
hesitant to predict the future. “The
passage of the budget package in February took local agencies off
the target list. Today, I can’t really make a guarantee,” said Sen.
Hollingsworth.
League President Judy Mitchell welcomes Gov. Arnold Schwarzenegger.
Assembly Member Noreen Evans
Senate Republican Leader Dennis
Hollingsworth 4
Governor, City Officials Rallies on Propositions 1A-F and Other Issues
The Governor packed the ballroom at the Sheraton Wednesday afternoon where he thanked the
League for supporting Props. 1A-F on the May 19 statewide special election ballot.
He told the audience that it would be historic if Prop. 1A, the measure that would temporarily raise
taxes and deposit revenues above a certain level into a Budget Stabilization Account, passes
next month. “The last time the state had a rainy day fund it was under Gov. Earl Warren (1943-
1953),” observed Gov. Schwarzenegger.
Talking optimistically about the campaign to pass the propositions, the Governor commented that
his partnership with city officials has always brought him luck. “Let’s go and create a budget
system so that we don’t have this problem, we can solve it once and for all,” said the Governor.
The Governor also discussed other issues including the need for improving California’s water,
infrastructure and health care reform.
Watch a clip of the Governor’s remarks on YouTube:
http://www.youtube.com/watch?v=RKW1QVrt3kg
Economic Recovery and Budget Also Topics of Thursday General Session
The American Recovery and Reinvestment Act (ARRA) of 2009 was also a big topic of discussion
during Legislative Action Days. The League’s City Funding Book, which is a resource on ARRA
funding, is getting a great deal of attention by more than just California city officials.
Business, Transportation and Housing Agency (BTH)
Secretary Dale Bonner thanked the League for its work
compiling the comprehensive City Funding Book. He told the
audience that California can use federal stimulus funding for
infrastructure projects. The BTH secretary also told the
audience that his agency is giving extra points for Prop. 1C
applications to cities that are using federal stimulus funds.
California Deputy Treasurer Katie Carroll provided some
national perspective on California’s budget woes, telling the
audience that 47 states have a budget shortfall, 19 with
double digit deficits. Carroll discussed how the credit crisis
and cash flow problems at the state level impact cities in the
form of delayed or stalled infrastructure projects.
Karen Douglas, chair of the California Energy Commission
(CEC), said that her agency is in the early stages of working
on guidelines for Energy Efficiency and Conservation Block
Grants for small cities that will be disbursed by the CEC. She also announced a series of CEC
workshops May 4 (Diamond Bar), 6 (Fresno) and 7 (Sacramento) from 1-3 p.m. for local
government officials on ARRA funding. The workshops will be at different locations but feature
the same agenda. More details will be reported in City Advocate Weekly when available.
Budget Action Day June 3
The League’s work on budget issues is far from complete and it’s important that city officials
continue to communicate to state leaders that the state should balance the state’s budget with
state revenues so cities can use their revenues for their own constrained budgets. The Governor
is expected to release his revised budget a week after the May 19 special election.
City officials are urged to come to Sacramento June 3 for Budget Action Day to lobby their
legislators on how the budget potentially impacts local government.
Watch for more information on Budget Action Day in City Advocate Weekly and make plans to
travel to Sacramento for this important event to protect local revenues.
Dale Bonner, secretary, Business,
Transportation and Housing Agency 5
_____________________________________________________________________________
‘Panel’ Continued from Page 1…
Participants included:
• Cynthia Bryant, deputy chief of staff
and director, Office of Planning and
Research for Gov. Arnold
Schwarzenegger;
• Bill Hauk, president and CEO,
California Business Roundtable,
member, Leadership Council,
California Forward, an organization
studying state fiscal and budget
reforms;
• Assembly Republican Leader Mike
Villines (R-Clovis); and
• Jim Wunderman, president and
CEO, Bay Area Council, an
organization active in recent discussions on the need for legislative reform including
promoting the concept of a state constitutional convention.
Sen. Mark DeSaulnier (D-Antioch) was invited but was unable to attend.
Fresno Council Member Henry Perea, president of the League’s Latino Caucus, introduced the
panel by highlighting the short term reforms on the May 19 special election ballot and longer term
issues coming into play with the questions of budget and governance reforms on so many minds.
The lively 90 minute discussion featured the panelists responding to questions about Prop. 1A,
the state’s budget problems and potential governance reform proposals.
Some remarks from the discussion include:
Mike Villines: “All the propositions play into process of getting priorities together. Prop. 1A is
good for both parties. It’s not a hard spending cap, but will moderate the peaks and valleys. My
goals are to work on the inside, rather than through propositions. State government is broken, the
state will always have resource issues. If we don’t fix this, the quality of life will decline
dramatically.”
Bill Hauk: “The state budget process is crazy. A $100 billion budget is out of balance three
seconds after it’s passed. No other public or private group in the world does this. They need to
look at the expenditures and revenues more often. In a two-year budget, (we) need more frequent
Jim Wunderman, president and CEO, Bay Area Council; Bill
Hauck, president and CEO, California Business Roundtable;
and Assembly Republican Leader Mike Villines participate in
a panel discussion on budget reform.
League Legislative Action Days panelists Henry Perea, Fresno council member; Cynthia Bryant,
deputy chief of staff and director of the Office of Planning and Research; Jim Wunderman, president
and CEO, Bay Area Council; and Bill Hauck, president and CEO, California Business Roundtable.
6
reviews, and will help locals develop a more predictable budget. Many legislators haven’t had to
manage a budget ever, they don’t know.”
Cynthia Bryant: “He (Gov. Arnold Schwarzenegger) has spoken favorably (about the possibility
of a constitutional convention) but more so for reform. For accountability, controlled budget, he’s
always looking for the next big idea.”
Jim Wunderman: “We need to bring back the trust. Constituents don’t feel they are being
represented. In 1859 they held a constitutional convention and 500 plus amendments later it’s a
mixed up system. We used to be leaders in California, now we’re at the bottom with
infrastructure, schools, prisons, transportation. We need a fix. We need a holistic look at
government. It’s been 140 years. There’s a better way to lead this state and reclaim the
greatness of California.”
_____________________________________________________________________________
Prop. 1B Local Streets and Roads Payments to Cities Restart, Next Allocation Still
Uncertain
The Department of Finance (DOF) authorized the State Controller’s Office to release $35.9
million dollars to cities for Proposition 1B Local Streets and Roads funding on April 15.
The 30 cities that received funding were part of a group of local agencies who were notified by
the DOF in December that their projects were approved. However, the majority of these
payments were caught by the state’s freeze on all bond dollars, halting the scheduled January
funding release date.
The DOF stated that additional payments to cities are pending for May 15, following the recent
round of successful bond sales that totaled $6.85 billion in general obligation bonds. This pending
distribution will follow the same “first come, first serve” standards put in place by the 2008-09
Budget signed by Gov. Arnold Schwarzenegger in September 2008.
Cities are strongly encouraged to submit their Prop. 1B project list so that they may receive funds
as soon as additional bond dollars are released. Those guidelines are available at:
http://www.dof.ca.gov/bonds/proposition_1b_disbursements/2008-09_appropriation/.
_____________________________________________________________________________
Supreme Court Weighs in on Local Agency Ballot Measure Activities
The California Supreme Court shed some light on an increasingly important issue for local
officials on Monday, April 20. The question is when it comes to local ballot measures, what can
one do lawfully with public resources and what is forbidden? Specifically, what is the dividing line
between permissible informational activities and impermissible campaign activities?
Local government advocates argued for a bright line standard that would allow local agencies to
engage in activities as long as those activities did not involve expressly advocating that voters
vote yes or no on a ballot measure. The Supreme Court rejected that request, finding that such a
standard would be too permissive. Instead, the Court reaffirmed its position in earlier cases that
the permissibility of communications turns on their “style, tenor and timing.”
The case involved the city of Salinas’ activities relating to a ballot measure that would have
repealed the city’s utility users tax. In anticipation of the nearly 13 percent revenue loss, the city
held a series of workshops (during city council meetings) that described the cuts to services and
programs that would occur if the ballot measure passed. The city council also adopted a
provisional budget detailing where cuts would occur if the ballot measure passed. Meeting
minutes were posted on the city’s Web site (which included the position of ballot measure
proponents articulated at the workshops). The city also prepared a one-page summary of the cuts
and included the information on what would be cut in its regular city newsletter.
Proponents of the ballot measure argued that these activities violated the prohibition against
using public resources for campaign purposes. The Court disagreed and took into account a
number of factors in reaching this conclusion including the fact that the city had not spent extra 7
money on these activities. The Court also highlighted that the city emphasized facts concerning
the effect of the measure’s passage, used non-inflammatory language, and only distributed the
information through regular city information channels.
The Court also reaffirmed that government entities are entitled to the protection of the Anti-
Strategic Litigation Against Public Participation (Anti-SLAPP) laws, which allow these cases to be
decided on a more expedited basis.
The decision is undoubtedly a big relief for the now-retired city manager who was sued in this
case, since missteps in this area of the law subject a public official to personal liability for the
amounts improperly spent.
The League of California Cities and the California State Association of Counties are grateful to
Karen Getman with Remcho, Johansen and Purcell for preparing the amicus brief in this matter
and organizing the practice argument for the city’s advocates.
The full court decision is available at
http://www.courtinfo.ca.gov/opinions/documents/S140911.PDF. A more extensive analysis of the
Court’s decision is available from the Institute for Local Government at www.ca-ilg.org/vargas.
City attorneys will have a session on this case at their upcoming conference at the beginning of
May. Information about the conference is available at www.cacities.org/events. Onsite registration
is available.
____________________________________________________________________________
Governor Announces the California Federal Economic Stimulus Task Force
In response to the emphasis on transparency and accountability in the American Recovery and
Reinvestment Act (ARRA) of 2009, Gov. Arnold Schwarzenegger created the California Federal
Economic Stimulus Task Force. The Governor’s press release is online at
http://www.gov.ca.gov/press-release/11927/.
The Task Force will:
• Track ARRA dollars received by the state;
• Help cities gain access to the funding;
• Work with President Barack Obama’s administration;
• Ensure the state is effectively and efficiently using the money; and
• Update www.recovery.ca.gov, the Web site Californian’s can use to track the stimulus
dollars.
Cynthia Bryant, deputy chief of staff to the Governor and director of the Governor’s Office of
Planning and Research, will lead the task force and act as California’s liaison to the federal
government.
Other members of the Task Force include: Chief Deputy Director of the Department of Finance
Ana Matosantos, Chief Operating Officer of the Department of Finance Fred Klass, California’s
Chief Information Officer Teri Takai, Director of the Governor’s Constituent Affairs Office Luis
Portillo and Chief Deputy Director of Communications to the Governor Jeffrey M. Baker.
The Task Force also includes a representative for each of the main program areas through which
the federal funding will flow: Joe Munso, undersecretary of the Health & Human Services Agency;
Will Kempton, director of Caltrans; Lynn Jacobs, director of the Housing & Community
Development; Todd Ferrara, deputy secretary of Resources Agency; Patty Zwarts, deputy
secretary of Cal-EPA; Tracy Arnold, Governor’s director for Jobs & Economic Growth; Kathy
Gaither, undersecretary of the Office of Secretary of Education; and Jaime Fall, deputy secretary
of Workforce and Development.
The Task Force can be reached through the Web site www.recovery.ca.gov or by telephone at
(916) 322-4688.
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_____________________________________________________________________________
California Energy Commission Workshop on ARRA Fund Disbursement
The California Energy Commission (CEC) is hosting a workshop on April 29 on the American
Recovery and Reinvestment Act (ARRA) provisions as they pertain to the disbursement of funds
for specific energy related projects. The workshop will focus on AB 811 (Levine) and other
funding mechanisms that finance the installation of energy efficiency improvements.
The workshop will also cover distributed generation and renewable energy sources through
contractual assessments to determine if and how ARRA money can best be used to advance
these programs in local jurisdictions. Commissioners from the CEC and the California Public
Utilities Commission may be in attendance at this workshop. The workshop is intended to inform
and discuss the types of projects that may be funded, eligible recipients of funds, applications
processes, and related timelines with the public and various stakeholders.
April 29, 2009
10 a.m. to 2 p.m.
California Energy Commission
1516 Ninth Street
First Floor, Hearing Room A
Sacramento, California
Presentations and audio from this meeting will be broadcast over the internet through Windows
Media. For details, please go to www.energy.ca.gov/webcast/. Webcast participants will be able
to submit questions during the meeting by sending email to AB811@energy.state.ca.us.
For more information about this workshop please visit http://www.energy.ca.gov.
_____________________________________________________________________________
Apply Now for the 2009 Waste Reduction Awards Program
Deadline to Apply is June 15
California cities, businesses and nonprofits are encouraged to showcase their voluntary waste
reduction, recycling, and resource conservation efforts by applying for recognition in the California
Integrated Waste Management Board's 2009 Waste Reduction Awards Program (WRAP).
Established in 1993, the award program honors California businesses and nonprofit organizations
for innovation and leadership in waste reduction, waste prevention, recycling, reuse, and buying
recycled-content products.
Application Details
The WRAP application deadline is June 15. The application is available online at:
http://www.ciwmb.ca.gov/WRAP.
For more information, please call (916) 341-6199 or contact the WRAP Program Coordinator at:
wrap@ciwmb.ca.gov.
A new category titled “Waste Reduction” is on the Governor's Environmental and Economic
Leadership Award (GEELA) application Web site. GEELA is California's highest environmental
honor and can be located at http://www.calepa.ca.gov/awards/geela.
_____________________________________________________________________________
Decision-Making Guide Available in Spanish
The Institute for Local Government’s (Institute) newest “Local Government 101” resource,
Understanding the Basics of Local Agency Decision-Making is now available in Spanish. The
resource was made possible through support from the Liebert Cassidy Whitmore law firm.
9
This resource is available online for individual use without charge at www.ca-
ilg.org/decisionmakingesp. Please forward the link to neighborhood groups, the media or others
who might interested or link it to your city’s Web site.
The publication is a product of the Institute's "Local Government 101" program. The program’s
goal is to provide information about the nuts and bolts of local government structures and
processes. More “Local Government 101” and other Institute resources for local officials are
available at www.ca-ilg.org.
_____________________________________________________________________________
Job Opening? Western City Magazine Can Help You Find the Best Candidate
List your job opening in Western City magazine. When you advertise your job opportunity in
Western City, you also receive a Web site posting at no additional charge! Visit
www.westerncity.com or call (800) 262-1801 for more information.
In a hurry to get the word out? Place your ad on our Web site today by visiting:
www.westerncity.com/postjobs.
Interim Management Needs?
MuniLink is the League of California Cities' interim management employee directory.
Featuring searchable categories of interim resumes, MuniLink is still the best online tool to
connect with highly trained municipal veterans eager to meet your agency’s needs.
SEARCHING THE ONLINE DIRECTORY IS FREE for agencies looking for products and
services, and offers individuals and companies a fast and effective way of connecting with city
officials in California.
MuniLink is a joint project of the League, the Institute for Local Government and Western City
magazine. Proceeds from MuniLink benefit the League's research and advocacy efforts on
behalf of cities.
Visit Today! www.cacities.org/munilink
_____________________________________________________________________________
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
Visit (and bookmark!) the League’s Legislative Resources Web page
(www.cacities.org/legresources). You’ll find a roster and contact information for the League’s
legislative staff; the online Bill Search program, background materials on lobbying your
legislators, and more.
_____________________________________________________________________________
IN THIS ISSUE: May 1, 2009
Issue #16-2009
Page 4: Oppose Bill That Limits Local Authority to Seek Reimbursement for Emergency Response Expenses
Support Greater Local Agency Flexibility in Alcoholic Beverage License Review
An Open Letter from CalPERS CEO to California Cities
Page 6: League Water Task Force Update
Page 7: California Communities Launching AB 811 Energy Efficiency Financing Program
Corrections Department Proposals Rely on Risk Assessment to Cut $400 million from Budget
Page 8: Block Grant Funding for Local Government Workshops
Page 9: Register Now for City Finance Workshop, May 29-30
Become a Facebook Fan of the League of California Cities
CALIFORNIA REDEVELOPMENT ASSOCIATION PREVAILS IN LAWSUIT
BLOCKING UNCONSTITUTIONAL STATE RAIDS OF REDEVELOPMENT FUNDS
The California Redevelopment Association (CRA) and cities throughout the state received good
news Thursday, April 30 when Sacramento Superior Court Judge Lloyd Connelly ruled
unconstitutional a provision in the FY 2008-09 budget signed in September 2008 which would
have required redevelopment agencies statewide to transfer $350 million to be used to fund state
obligations. For more, see Page 2.
••••••••••••••••••••••••••••••••••••
SENATE BILL ALTERING REDEVELOPMENT LAW
REMAINS OF CONCERN TO CITIES
For the last month the California Redevelopment Association (CRA) and the League have been
involved in an effort to negotiate and resolve issues associated with SB 93 (Kehoe), a bill which
contains provisions which would expose local redevelopment projects across California to
unnecessary costs, delays and litigation. Sen. Christine Kehoe (D-San Diego) originally
introduced the legislation in response to what she viewed as an inappropriate use of funds to
construct public facilities outside of a designated redevelopment project area in San Diego.
For more, see Page 2.
••••••••••••••••••••••••••••••••••••
BUDGET ACTION DAY SCHEDULED FOR WEDNESDAY, JUNE 3
The League is holding a special event in Sacramento on June 3 following the release of the May
Budget Revise to bring city officials to lobby their legislators and administration officials on
possible implications of the May 19
special election results. The timing of this session is designed
to allow many city officials to come in just for the day. For more, see Page 3. 2
_____________________________________________________________________________
‘CRA’ Continued from Page 1…
The suit before the court was brought by the CRA and the redevelopment agencies of the Cities
of Moreno Valley and Madera which sought to block parts of budget trailer bill AB 1389. AB 1389
was approved in September 2008 as part of the FY 2008-09 budget package.
Certain sections of the bill authorized a one-time raid of $350 million in redevelopment funds.
Judge Connelly’s ruling in favor of the petitioners invalidates that aspect of AB 1389 and prohibits
the state from forcing county auditors to divert $350 million in redevelopment funds to finance
state obligations.
The lawsuit argued that state raids of redevelopment funds to balance the state’s budget are
unconstitutional, violating Article XVI, Section 16 of the California Constitution which states that
redevelopment funds can only be used to finance redevelopment project activities.
Judge Connelly agreed, writing in his ruling Thursday that AB 1389, “…in its general and ordinary
operation, inevitably conflicts with and violates the terms and intent of Section 16, to allocate tax
increment revenues to the financing of redevelopment projects.”
Attorneys continue to review the case for additional implications. It is not yet known whether the
state will appeal this ruling.
_____________________________________________________________________________
‘SB 93’ Continued from Page 1…
Although CRA and the League agree that current law affecting the issue of expenditures outside
of project areas should be tightened and have offered amendments which address this issue
directly, those amendments have yet to be accepted. Moreover, significant concerns remain with
provisions of the bill that create undue obstacles affecting development within project areas.
The League and CRA appreciate that during the negotiations, Sen. Kehoe has held the bill on the
Senate Floor. Out of respect for these good-faith discussions, the League has also refrained from
issuing opposition floor alerts. While the bill was amended on Wednesday, April 28, numerous
significant issues remain. The League and CRA appreciates that Sen. Kehoe has expressed
interest in continuing to work on the issues.
Remaining Issues
The following is what was sent to the Senator’s office highlighting remaining issues:
In its current form, SB 93 would make the following major changes to the use of redevelopment
funds to finance publicly owned facilities:
(1) The findings required to be made in connection with facilities both inside and outside the
redevelopment project area would be subject to judicial challenge. These findings are
very subjective (e.g., "no other reasonable means of financing" the facilities) and
inherently difficult to prove, requiring in some cases the proof of a negative. This change
would lead to increased litigation and cause delay and increased costs for public projects
that will leverage private investment and create jobs.
(2) The provision of housing for persons of low and moderate income would be eliminated as
an alternative to a finding that the public facilities would assist in the elimination of blight.
This could prohibit agencies from funding public facilities, such as flood control
improvements or a community center that are needed for an affordable housing project.
(3) For public facilities located outside a redevelopment project area, the agency would need
to undertake costly, duplicative and time-consuming surveys of blighting conditions in
order to prove that significant blight remains in the project area. Under current law, blight
studies must be performed before the redevelopment plan is adopted. Once the
redevelopment plan is adopted, the project area is conclusively deemed to be a blighted 3
area. (Health & Safety Code §33368.) Additional blight studies are presently not required
unless certain redevelopment plan amendments are proposed which would enlarge the
project area or extend the time limits on the redevelopment plan. The requirement to
perform additional blight surveys will lead to litigation, delays, and increased costs.
(4) Under current law, redevelopment plans adopted prior to the effective date of the
legislation creating Section 33445 (Oct. 1, 1976) do not have to show that the public
facilities to be financed from redevelopment funds that were provided for in the
redevelopment plan. SB 93 would eliminate this exemption. This would trigger the need
to amend redevelopment plans adopted before this requirement was included in the law,
again creating costly delays of important public projects.
(5) SB 93 contains no grandfather clause to cover project commitments that might be made
prior to the new law’s effective date. It could adversely affect the ability of redevelopment
agencies to comply with existing contractual obligations made to developers and other
public agencies.
The amendments CRA previously suggested to the bill would address all of these concerns while
putting in place significant increased restrictions on the expenditure of funds for public facilities
outside project areas.
Next Steps
Cities with redevelopment agencies are encouraged to review the most recent version of SB 93
and identify potential negative impacts. The League and CRA will continue to work with the
Senator’s office in an effort to resolve outstanding issues. June 5 is the Senate deadline for
moving bills off the floor, so there is still time to continue working towards a positive resolution. If
those good-faith efforts do not produce satisfactory amendments, the League will have no other
option but to request that all cities oppose the legislation with great vigor.
To read a copy of SB 93 in its most recent amended form log on to www.cacities.org/billsearch
and entering “SB 93” into the search field.
_____________________________________________________________________________
‘B.A.D.’ Continued from Page 1…
With California’s fiscal crisis, budget negotiations and testimonies are going to be extremely
important. The budget will likely include a combination of significant cuts and revenue-generating
solutions, and the May Revise will set the tone for the coming weeks of budget negotiations.
California cities need to join forces to respond to any relevant May Revise proposals to ensure
cities’ needs are heard and understood in the Capitol.
Schedule of Events
10 – 11:15 a.m., May Revise Budget Briefing
Citizen Hotel, Metropolitan Terrace, Sacramento, CA
11:15 a.m. – 3:30 p.m., Time for Scheduling Lunch and Lobbying Appointments with
Legislators
R.S.V.P.
Please R.S.V.P to League Staff Meghan McKelvey by Wednesday, May 18, 2009 at
mmckelvey@cacities.org or (916) 658-8253.
District Budget Meetings
City officials who are unable to make the trip to Sacramento on June 3 are encouraged to contact
their League public affairs manager to schedule a district meeting with their legislator.
_____________________________________________________________________________
4
Oppose Bill That Limits Local Authority to Seek Reimbursement for Emergency
Response Expenses
The League urges cities to oppose AB 1004 (Portantino), a bill which would infringe on local
authority to levy fees or seek reimbursement for emergency response costs unless that incident is
clearly the fault of a non-resident of that local jurisdiction. In addition, AB 1004 could have far-
reaching consequences that further limit a city’s ability to levy fees on other public services.
Take Action!
The League encourages cities to send letters to their legislators requesting a “no” vote on AB
1004. A sample letter is available at www.cacities.org/billsearch by entering “AB 1004” in the
search field.
_____________________________________________________________________________
Support Greater Local Agency Flexibility in Alcoholic Beverage Licenses Review
Send your SB 415 Letter to Your Legislator Today
The League urges cities to give their support to SB 415 (Oropeza), a bill which would increase
local agency flexibility in reviewing alcoholic beverage license requests.
Under current law, a city may request a 20 day extension in their review of alcoholic beverage
license requests through their police chief. SB 415 would provide local agencies with an
additional 10 days on the extension request, for a total of 30 days, to review the license requests
and also allow any member of the city council, planning department, or law enforcement to ask
for the 30 day extension.
The 30 day review period would better accommodate public meeting schedules and ensure
adequate staff review. This is especially important in these tough economic times as cities are
reducing business hours and in some cases staff positions.
Take action and send you letter of support today. A sample letter can be found online at
www.cacities.org/billsearch by entering “SB 415” in the search field.
_____________________________________________________________________________
An Open Letter from CalPERS CEO to California Cities
Dear League Member,
As the new chief executive officer of CalPERS, I appreciate this opportunity to introduce myself
and address a few topics of mutual interest.
As you may be aware, prior to my appointment as CEO, I was CalPERS’ chief operating
investment officer. Before that, I served as chief deputy State Treasurer.
I recently had the opportunity to meet with League Executive Director Chris McKenzie and
Deputy Executive Director Dwight Stenbakken to make sure that there are open lines of
communication between CalPERS and our contracting cities. The meeting gave me a greater
appreciation of the concerns of cities.
There is no question that we are in challenging economic times. By all accounts, we are in our
deepest economic recession since the Great Depression. Our investment and financial markets
are being severely tested. All investors have seen significant loss of asset values, from personal
retirement savings to big public pension funds like CalPERS. If your city contracts with CalPERS
for retirement benefits, you are understandably concerned about how recent investment losses
will affect your future retirement costs.
The good news is that your CalPERS employer contribution rates will be largely unchanged next
year, the 2009-10 fiscal year.
5
This is partly due to the rate “smoothing” policy adopted by the CalPERS Board in 2005 that
reduces rate volatility by spreading investment gains and losses over 15 years. This prevents
employer costs from going up or down dramatically after one or two good or bad years of
investment returns. The policy change was made at the behest of contracting employers who
wanted greater rate predictability from year to year.
The other factor is that there is a two-year lag between investment performance and the impact
on employer rates. Your 2009-10 rates are based on investment returns for the fiscal year that
ended June 30, 2007, a year in which CalPERS investments gained 19.1 percent, well above our
actuarial target rate of 7.75 percent.
Our rate smoothing policy will minimize rate increases the following year (2010-11) even though
the CalPERS pension fund suffered a 5.1 percent loss in the year ended June 30, 2008, as the
recession began to take hold. In fact, most cities will likely see a rate decrease of less than 0.1
percent based on investment returns alone. However, the demographic experience of your plan
may result in a slight net increase in rates.
Rates for 2011-12 are less certain. We will have a better picture of what employer rates will look
like after June 30, 2009, when we calculate returns for the full 12 months of this fiscal year. We
do know that a loss of 20 percent or more could mean a rate increase of between 2 and 5 percent
of payroll, as mentioned in a November 2008 Circular Letter to employers from our Chief Actuary
Ron Seeling.
We are very mindful of your dilemma and share your concerns. I can promise you that CalPERS
is committed to working with local public agency employers to provide you with the tools and
technical assistance to fully understand how our investment returns will affect your valuations and
retirement contributions in the future. Our chief actuary is analyzing options for mitigating the
impact on city budgets.
I also want to tell you about the actions we are taking to mitigate the effects of the economic crisis
on our investment portfolio.
We are proactively analyzing all asset classes and taking a disciplined investment strategy going
forward. Our investment staff has taken action to maximize investment opportunities when the
economy and financial markets rebound. Our Board widened our asset allocation target ranges
for stocks, bonds, real estate, and private equity, which gives us more flexibility to manage our
investment portfolio during these unusual times. It means we don’t have to sell assets to stay
within rigid target allocations that might result in investment losses.
In our real estate portfolio, we have taken a number of steps to calculate the real value of our
holdings, analyze the capital structure, restructure debt, and reduce leverage. We are looking at
opportunities to participate in the Troubled Asset Relief Program (TARP) developed by the
federal government to purchase assets and equity from financial institutions in order to strengthen
the financial services sector. And we are ramping up our inflation-linked asset class to invest in
infrastructure, commodities, and energy-related businesses.
Of course, market reform is also at the top of our agenda. We recently teamed up with other
pension funds representing $900 billion in assets to develop regulatory principles aimed at
restoring trust in global capital markets. In addition, our Board has established a new ad hoc
committee to ensure the effectiveness of our risk management architecture and infrastructure.
Finally, it is important to remember that CalPERS is a long-term investor. Our investment strategy
is designed to weather periodic financial storms. Over the past 75 years, CalPERS has survived
numerous market downturns such as the 1987 stock market crash and the recession of 1990.
During the 2001 recession, our pension fund lost $50 billion on paper, but we rebounded with a
gain of $120 billion over the next four years.
While the past year has been trying for cities that contract with us for retirement benefits, I am
optimistic that by working together we will emerge in good shape. No one can predict how long it
will take for markets to recover, but we are doing everything possible to ensure that we are 6
investing wisely, managing our risk, protecting your employees’ retirement assets, and keeping
retirement costs affordable.
I look forward to our continuing dialogue. If you would like to stay abreast of CalPERS
developments and how they might affect your city and your employees, I invite you to attend
meetings of the CalPERS Board’s Benefit and Program Administration Committee, which meets
once a month, typically at our Sacramento headquarters. Your input is always welcome. Meeting
dates and agenda materials are available on our Web site at www.calpers.ca.gov. And, of course,
our Actuarial and Employer Services staff is always available to answer your questions and assist
you with conducting CalPERS business.
Sincerely,
Anne Stausboll
CalPERS Chief Executive Officer
_____________________________________________________________________________
League Water Task Force Update
The League’s Water Task Force is beginning its work of analyzing and recommending changes to
Water Guidelines that the League jointly developed with the California State Association of
Counties (CSAC) more than 20 years ago. The guidelines have been used since their adoption in
1988 to help shape League policy on water issues.
The task force met for several hours in Sacramento on Thursday, April 16 to discuss the key
water issues affecting cities and how to proceed with the work of updating the Water Guidelines.
Thirty-nine members of the 88-member task force attended, including 20 voting members.
(Membership on the task force is open to any interested city official, although each League
division determines voting members.)
The meeting was chaired by Vice-Chair Harry Armstrong, council member, Clovis, on behalf of
the Chair Robin Lowe, Hemet council member and League second vice president, who was
absent due to illness.
The meeting opened with presentations that helped to update task force members with current
issues and discussions about water reform in the legislature. Presenters were Sen. Dave Cogdill
(R-Modesto); Ron Davis, state legislative director, Association of California Water Agencies; Joe
Caves, partner, Conservation Strategies Group; and Alf W. Brandt, principal consultant,
Assembly Committee on Water, Parks & Wildlife.
Working Groups
Following the presentations, task force members discussed the primary water issues and
concerns of their cities. Based on the issues identified, members then formed three working
groups, and self-assigned themselves to the following groups:
The working groups are:
• Water Discharge: waste water, water quality, stormwater/runoff, regional boards
• Water Supply/Groundwater: Delta management, supply/storage, water quality,
reclamation
• Water Use: education, water quality, demand (conservation), reclamation, mandatory
efficiency measures
Over the next few weeks, task force members will be evaluating the Water Guidelines pertaining
to their working group, and submitting comments to League staff. Conference calls or webinars
with each working group will also occur.
The task force is tentatively planning its next meeting in Sacramento for June 25, to occur
following League Policy Committee meetings that day. Recommendations from the task force will
be submitted to the Environmental Quality Policy Committee, before being forwarded to the
League board of directors. 7
For more information about the Water Task Force, please visit www.cacities.org/watertaskforce,
or email Kyra Ross at kross@cacities.org.
____________________________________________________________________________
California Communities Launching AB 811 Energy Efficiency Financing Program
Energy efficiency upgrades are an increasingly valuable asset to any property and soon
California Communities can help cities finance these projects for home and business owners.
Through AB 811 (2008), assessment liens can be used to finance renewable energy and energy
efficiency upgrades. When a property is sold, the lien goes to the next owner until the lien is paid
off. This policy makes energy efficiency upgrades for property owners much easier because it
helps with the upfront costs and mitigates any fear that the investment will be lost when a
property is sold.
California Communities on Dec. 12, 2008 approved the award of a RFP to provide two
approaches for cities to use for home and business owners financing of renewable energy
projects and energy efficiency upgrades. One program will fund initial loans through a temporary
line of credit, with the intent to take out those loans at a later date via a bond issue once sufficient
volume is attained. The other will provide direct lending from a large commercial bank for the
energy efficiency upgrades and solar projects, without the intent of issuing bonds to take out
those loans.
The conceptual framework for the programs has been developed and California Communities is
finalizing its approach to legal issues surrounding the priority of a lien created by special
assessments under AB 811 and the effects of the lien on a deed of trust for a homeowner or
business. The legal issues should be resolved in May with programs scheduled for roll out in
August.
For more information, please contact California Communities staff Terrence Murphy at (925) 933-
9229 x223 or tmurphy@cacommunities.org.
_____________________________________________________________________________
Corrections Department Proposals Rely on Risk Assessment to Cut $400 Million
from Budget
The California Department of Corrections and Rehabilitation (CDCR) put forward five reform
proposals in response to the $400 million budget cut the department faces with the FY 2009-10
budget passed in February. CDCR Secretary Matt Cate announced that these solutions are
“smart on crime and tough on crime,” allowing CDCR to maximize limited resources without
jeopardizing public safety. The proposals’ main thrust would shift the majority of resources
towards the serious, violent, and sexual offenders who are at the highest risk of reoffending.
(More information on the CDCR’s risk-assessment tool is available by clicking here.)
Additional details about when these programs will go into effect and how local law enforcement
agencies will engage will be announced shortly. Secretary Matt Cate did however confirm that
these proposals do not initially meet the $400 million dollar cut so more savings will need to be
found elsewhere. These proposals must also win approval from the legislature and Gov. Arnold
Schwarzenegger. The five proposals are:
1) Parole Reform: CDCR will only keep serious, violent, or sexual offenders on supervised
parole and along with non-violent, non-serious, and non-sexual offenders who have a
high risk of reoffending. All other parolees who have a commitment offense that is non-
violent, non-serious, and non-sexual in addition to qualifying as low-risk will be on direct
discharge. This proposal is modified slightly from previous versions because of the
additional consideration of the risk-factor management tool. 8
• GPS Alternative to Incarceration: For parole violations deemed less severe,
some individuals will qualify for GPS monitoring in lieu of incarceration but only if
they meet the low-risk profile.
• Search and Seizure Provisions Maintained: Local law enforcement will retain
search and seizure authority over state inmates directly discharged for the
duration of their would-be parole period, regardless of actual parole status.
2) Refocus on High-Risk Offenders: CDCR will minimize case loads for parole agents so
they can provide enhanced supervision to those individuals with the highest risk of
reoffending.
3) Enhanced Program Credit Earnings: Similar to earlier proposals to enhance credit
earnings towards early release, state prison and work camp inmates will earn reduced
sentence credits for completion of programs that achieve education, work training,
behavioral management, and substance abuse rehabilitation goals.
4) Property Crime Threshold Increase: The minimum value for stolen goods to qualify as
grand theft will be adjusted to meet changes in inflation, increasing from $450 to $900
dollars. The current threshold was set in 1992.
5) Increased Staff Efficiency: CDCR will be eliminating positions at their headquarters in
Sacramento as well as within the Division of Juvenile Justice, representing the largest
administrative cut since the Governor assumed office.
_____________________________________________________________________________
Block Grant Funding for Local Government Workshops
The California Energy Commission (CEC) is hosting workshops for local officials in early May on
provisions in the American Recovery and Reinvestment Act related to funds for specific energy
related projects. The workshops will focus on the Energy Efficiency and Conservation Block Grant
Program (Block Grant), including program description and objectives, funding sources, DOE
guidance, application process and timelines for providing input into developing guidelines.
These workshops will provide information to local governments, specifically small cities and
counties, about the Block Grant program elements and objectives, application processes, and
timelines for developing guidelines and opportunities for public input. All three workshops will
follow the same agenda and address the same issues.
Workshop Details
Monday, May 4
1 p.m. - 3 p.m. Energy Efficiency and Conservation Block Grant Program
4 p.m. - 8 p.m. State Energy Program Funding Allocation
South Coast Air Quality Management District, Auditorium
21865 Copley Dr.
Diamond Bar, CA 91765
Wednesday, May 6
1 p.m. - 3 p.m. Energy Efficiency and Conservation Block Grant Program
4 p.m. - 8 p.m. State Energy Program Funding Allocation
UCSF Fresno Center for Medical Education and Research, Auditorium
155 N. Fresno St.
Fresno, CA 93701
Thursday, May 7
1 p.m. - 3 p.m. Energy Efficiency and Conservation Block Grant Program
4 p.m. - 8 p.m. State Energy Program Funding Allocation
California Energy Commission, First Floor, Hearing Room A
1516 Ninth Street
Sacramento, California 95814
Workshops will be webcast where possible. For more information on the workshops, please visit
http://www.energy.ca.gov/recovery/meetings/index.html or contact Jennifer Grutzius with the
Recovery Task Force at Jennifer.grutzius@recovery.ca.gov, (916) 601-4245.
_____________________________________________________________________________ 9
Register Now for City Finance Workshop, May 29-30
There is no more pressing subject these days than the economy and how city budgets are being
affected by dramatically declining revenues. The League’s Advanced Leadership Workshop will
feature a special track this year—City Finances: What You Need to Know. Scheduled for May 29-
30 at the Paradise Point Resort in San Diego, this in-depth seminar will focus on the essential
topics of California city finance that every local elected official should know.
Topics include:
• Revenues;
• Financial policies;
• The state/local relationship;
• The state budget;
• Financial reporting and auditing;
• Ethical issues in financial management;
• Log term financial planning;
• Budgeting;
• Cash management and investing;
• Capital financing;
• Debt management; and
• Hot topics and hot tips.
Presentations by top subject experts inducing:
• Mary Bradley, director of finance, Sunnyvale;
• Michael Coleman, fiscal policy advisor, League of California Cities; and
• Ken Nordhoff, city manager, San Rafael.
For more information please visit www.cacities.org/events or call (916) 658-8200.
_____________________________________________________________________________
Become a Facebook Fan of the League of California Cities
There is a new way to connect with the League—Facebook. Launched on Friday, March 27, the
page features updates on legislative developments, League activities as well as organizational
information.
It’s easy to become a fan of the League on Facebook if you are a Facebook member. To find the
League’s page either search for “League of California Cities” in the search box in the upper right
corner of Facebook or click on http://www.facebook.com/pages/League-of-California-
Cities/76642059637 to go directly to the page. Under the League logo click on “Become a Fan.”
____________________________________________________________________________