IN THIS ISSUE: January 9, 2009
Issue #1-2009
Page 4: Governor’s Budget Proposal: Summary of Items of Interest or Concern to Cities
Page 5: California Water Environment Association Offers Training on SSO-WDR
New Mayors and Council Members Academy to Take Place this Month
City Advocate Weekly Replaces Priority Focus in January
Page 6: League Offices Temporarily Relocated
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
PRESIDENT-ELECT OBAMA DISCLOSES
DETAILS ON HIS ECONOMIC STIMULUS PLAN
California Prepares For Influx of Federal Funding
This week President-Elect Barack Obama began releasing more details for his plans to jumpstart
the nation’s economy. The “American Recovery and Reinvestment Plan” is expected to invest in
health care, energy, infrastructure, and education, as well as save or create over 3 million jobs. It
will focus on responsibility, accountability, and transparency. You can read the details of Obama’s
plan at http://change.gov/agenda/economy_agenda/. For more, see Page 2.
••••••••••••••••••••••••••••••••••••
SEN. FEINSTEIN INTRODUCES FISCAL RELIEF
BILL FOR LOCAL GOVERNMENTS
Sen. Dianne Feinstein (D-California) has introduced S. 116, a bill to require the Secretary of the
Treasury to allocate $10,000,000,000 of Troubled Asset Relief Program (TARP) funds to local
governments that have suffered significant losses due to highly-rated investments in failed
financial institutions. For more, see Page 3.
••••••••••••••••••••••••••••••••••••
STATE BUDGET SOLUTION NOWHERE IN SIGHT
A solution to the state’s $41.6 billion, 18-month budget deficit seemed farther away this week,
when Gov. Arnold Schwarzenegger vetoed the entire package of budget-balancing bills passed
by the Legislature in December. That package of 12 majority vote-only bills aimed to cut state
expenses and raise revenues to achieve about $18.1 billion current fiscal year General Fund
savings, split roughly into $9.3 billion in new revenues and $8.7 billion in cuts. For more, see
Page 3. 2
‘Transportation’ Continued from Page 1…
While the President-Elect has not yet publicly announced the total amount of his proposed plans,
his office has indicated it will be between $675 billion and $800 billion. Early in the week, Obama
met with Congressional leadership and encouraged them to act quickly to pass a plan. He also
asked that no earmarks be included in the bill. Acknowledging the extraordinary amount of money
needed to get the economy on track, he indicated an oversight board would be created to identify
and solve problems early in the process in order to make sure the money is not misspent.
Alternative Approaches Discussed for Transportation Funding
Even before details of the plan began to be released, California began preparing for a sudden
influx of money. Cities across the state have been working with the League, California
Department of Transportation (Caltrans) and other government agencies in their regions to
compile information on projects that are “shovel ready” and for which contracts can be quickly
executed.
League staff is participating in meetings with state agencies and other interested parties to review
current state law in order to ensure that the state is able to allocate and distribute any funds
received in a timely manner. Current law sometimes requires that funds be routed through
several other funds and agencies before it actually is received by the agency that will spend the
funds. In some cases, a competitive process is required before funds are allocated.
An example of a situation where state law may need to be revised is in the area of transportation.
In mid-December, Caltrans convened a working group to begin preparing for the implementation
of a federal economic stimulus plan. The working group has been discussing the best manner to
get transportation dollars to the agencies that will be putting the dollars to work. The following two
proposals have emerged from the discussions.
Proposal A: A Regional Approach. The California Association of Councils of Governments
(CALCOG) supports allocating the funds using the existing Surface Transportation Program
(STP) formula. Under this proposal, the regional transportation agencies would receive 62.5
percent of the funds, and Caltrans would receive the remaining 37.5 percent. CALCOG maintains
that the existing program works, and that is the best system to get the funds committed quickly.
Some cities and counties are concerned with this approach because there would not be a direct
or committed allocation to cities and counties.
Proposal B: Direct Allocation to Cities and Counties. In the second proposal, funds will be
split evenly among 1) Caltrans, 2) regional agencies, and 3) cities and counties. In order to
simplify the process, the California Transportation Commission (CTC) would be given the
authority to distribute the funds to the regions, cities, and counties, as well as the responsibility to
report to the federal Department of Transportation what projects will be funded. It has been
suggested that under this plan, cities and counties could “loan” their federal economic stimulus
money to Caltrans. Caltrans would use the funds immediately to backfill projects that are in
jeopardy of being shut down mid-project due to the fiscal conditions in California. Cities and
counties would then be paid back with other Prop. 1B funds once the state is able to sell bonds
again. The funds would be an augmentation to Prop. 1B, and allocated using the same formula
as Prop. 1B.
The League and California State Association of Counties (CSAC) have been discussing both
proposals with public works directors, and Proposal B has some benefits for cities. First, if cities
agreed to loan their economic stimulus funds to the state and receive an augmentation to their
Prop. 1B dollars in return, the funds would be state dollars and would not need to meet federal
requirements, including the National Environmental Quality Act (NEPA). Also, the definition of
uses under Prop. 1B is broader than the definition expected in the Federal package. Second, the
funds would not have to be contracted in the short timeframes required by the federal package.
Third, cities would know in advance the amount of funds they will receive and can prepare for
their use. Finally, Caltrans would not default on their currently contracted projects, saving the
transportation community up to $350 million in penalties.
3
These proposals will continue to be developed as more specific details for the federal package
become known. The working group convened by Caltrans will also continue to meet to reach a
final consensus on what is best for California. If your city has any comments or questions on the
proposals above, please email Jennifer Whiting at jwhiting@cacities.org. Updates to the
negotiations will also be included in future issues of Priority Focus.
_____________________________________________________________________________
‘TARP Legislation’ Continued from Page 1…
The League supports the measure, which has been referred to the Senate Committee on
Banking, Housing, and Urban Affairs.
The League will provide additional information as this bill moves through the process.
_____________________________________________________________________________
‘Budget’ Continued from Page 1…
The Governor and budget experts agree that the deficit increases with each day that passes
without a budget solution. The State Controller has cautioned that without a budget solution, the
state will run out of money to pay its bills in February.
Governor Explains Veto. In a letter this week to Democratic legislative leaders and in a
subsequent press conference, the Governor explained that he had vetoed the package of bills
because he concluded they did not go far enough in cutting expenses, and would punish
taxpayers by establishing a new withholding requirement for independent contractors. He
questioned the constitutionality of legislation that would give the Department of Finance the
authority to raise taxes administratively, without legislative approval, based on annual revenue
projections. He also was concerned with legislation that would increase the price of gasoline 13
cents above current levels “at a time when hard-working Californians are already suffering.”
The Governor also objected that the package fell short of reforms that he believes are essential to
stimulate the state’s sluggish economy. These include providing relief from environmental and
labor laws for infrastructure projects, and granting the state greater authority to use design-build
and public-private partnership agreements to build infrastructure. He also faulted the Legislature
for failing to put forward bills that will help families facing foreclosure.
Administration Posts Early Release of 2009-10 Budget Proposal
Gov. Schwarzenegger's Department of Finance rolled out the Administration’s own proposal to
solve the state's budget deficit on New Year's Eve.
The proposal would close the deficits in the current 2008-09 fiscal year and the budget year that
starts on July 1, 2009. It would achieve this, and create a $2.1 billion reserve by cutting $17.4
billion in services over the next 18 months and increasing revenues by $14.3 billion. Additionally,
the proposal assumes that the state can both increase lottery revenues by $5 billion and borrow
that money; and that the state will be able to ease its fiscal problems by issuing $4.6 billion in
revenue anticipation warrants (RAWs), which will be repaid in the 2010-11 fiscal year. (View a
copy of the budget proposal on the Department of Finance Web site. The Legislative Analyst has
produced an initial review of the budget, available at www.lao.ca.gov.)
The plan includes many concepts put forward in earlier budget proposals made by the Governor
or the Legislature. League staff are still studying the proposal, but there does not appear to be
any significant impacts on cities, including no raids or borrowing from property taxes (including
redevelopment) or transportation sales tax revenues (Prop. 42/1A). (See also "Governor’s Budget
Proposal: Summary of Actions of Interest or Concern to Cities" on page 4.)
The Governor followed up his veto, however, by calling together the “Big Four” (Democratic and
Republican Senate and Assembly Leaders) to meet with him today in a new effort to negotiate a
budget solution.
Court of Appeal Declines to Intervene in Democratic Budget Proposal. Also this week, the
Court of Appeal denied a petition filed by the Howard Jarvis Taxpayers Association and the 4
Republican Members of the Legislature, requesting that budget bills passed by legislative
Democrats in December on a simple-majority basis be returned to the Legislature and made
subject to a two-thirds vote. The court said that unless and until the bills were signed, there was
no reason to intercede in the legislative process.
Budget Uncertainty Hurts Cities - and the State
In the absence of a final state budget plan, the biggest impact on cities at this time is the ongoing
uncertainty as to how the state will ultimately solve its deficit problems. City officials are already
struggling to make the local cuts necessary to live within their own declining revenues. The
uncertainty as to whether the state will cut or borrow local funds to balance the state budget is an
added burden.
Finally, the state's shaky credit worthiness has a spillover effect on cities, who find that their own
ability to sell locally-approved bonds may be impacted by the concern of bond houses as to the
state's credit-worthiness.
_____________________________________________________________________________
Governor’s Budget Proposal: Summary of Items of Interest or Concern to Cities
The following is a summary of budget actions of interest to cities that were included in the
Administration’s 18-month budget proposal, released on December 31, 2008. City officials have
seen most of these concepts in prior budget-balancing proposals released over the past few
months.
• No Borrowing Local Funds. The Governor does not propose to borrow local property taxes
or Proposition 42 (sales tax on gas) revenues.
• Redevelopment Funds. No additional take of redevelopment revenue is proposed.
• Prop. 1B (Transportation) and Prop. 1C (Housing) Allocation. The proposal allocates
$700 million in remaining Prop.1B Local Street and Road funds, as well as an additional $487
million in Prop. 1C housing funds for infill, park and transit-oriented development projects.
• Federal Funds. Allocation of $140 million in federal foreclosure assistance funds local
agencies by the Department of Housing and Community Development.
• Public Safety. Retention of the Governor's previously proposed cuts to local public safety
programs, which include shifting funding for COPS and Booking Fees to Vehicle License
Fees, and eliminating funding to several specialized public safety grant programs.
• Prison Costs. No changes are made to the Governor's previous proposals designed to save
state prison costs which include enhanced sentencing credit programs for state inmates and
eliminating state parole supervision for specified offenders with non-violent histories.
• State Mandate Reimbursements. $131 million is proposed to be allocated to reimburse
current mandate claims, but the Governor proposes to defer for one year a $91 million
payment for previously-owed mandate claims.
• Transit. $153 million is proposed to be cut from state transit assistance funds in the 2008-09
fiscal year and $306 million in 2009-10.
• Property Tax Deferrals. New tax deferrals under the existing Senior Citizens Property Tax
Deferral Program are proposed to be suspended on Feb. 1, 2009.
• SB 375 Implementation. An additional $682,000 is proposed to be allocated to the Air
Resources Board for work in developing travel demand models associated with regional
planning activities required by SB 375 (Steinberg).
• Waste Tire Recycling Program. An additional $8.6 million is proposed to be allocated for
the Waste Tire Recycling Management Program for various loans, local assistance grants
and public outreach.
• Emergency Response. $17.1 million is proposed to be allocated for state emergency
response activities to be funded through a 2.8 percent surcharge on all residential and
commercial insurance policies.
• Public Safety Interoperability. $4.5 million in federal funds is designated for public safety
interoperability grants through the California Emergency Management Agency. 5
_____________________________________________________________________________
California Water Environment Association Offers Training on SSO-WDR
The California Water Environment Association (CWEA) continues to fulfill its Memo of Agreement
with the State Water Resources Board, by offering training on the Sanitary Sewer Overflows-
Water Discharge Requirements (SSO-WDR). Training is planned through June 2009 on four
compliance topics in 13 cities throughout the state. This training continues to be critical,
especially as the State Water Board begins to move into the enforcement phase of the SSO-
WDR.
The next three training workshops are scheduled as follows:
Jan. 13, 2009, 8 a.m. – 12 p.m. - Electronic Reporting Requirements & Tips
City of Fresno
5607 W. Jensen Ave.
(559) 621-5190
Feb. 5, 2009 - Sewer System Management Plan (SSMP) Requirement 1
City of Santa Rosa
Laguna Treatment Plant
4300 Llano Rd.
Santa Rosa, CA 95407
Feb. 10, 2009 - SSMP 4 M's (Map, Maintain, Measure & Modify)
Sacramento Regional CSD
8510 Laguna Station Rd.
Elk Grove, CA 95758
For more information, including online registration, please visit the CWEA Web site at
www.cwea.org/conferences.
_____________________________________________________________________________
New Mayors and Council Members Academy to Take Place this Month
Newly-elected mayors and council members will have an opportunity to learn critically important
“rules of the road” when they convene Jan. 21-23 in Sacramento for the League of California
Cities’ New Mayors and Council Members Academy. The 2009 Academy features a range of
educational sessions designed to address the priorities and requirements newly-elected officials
face as they assume office. Among the topics to be covered are ‘Your Legal Powers and
Obligations,’ ‘Effective Advocacy and Key City Issues’ and ‘AB 1234: Ethics Training,’ to name
just a few.
Participants have the opportunity to network with other newly elected officials and League staff.
They will be introduced to their League regional division members and staff representatives and
discover how to build a local network. They will also have the opportunity to network with their
own and other state legislators at a special Legislative Reception.
For more information on the Mayors and Council Members Academy, please contact Brian
Sanders at bsanders@cacities.org, or visit the League Web site at www.cacities.org/events.
_____________________________________________________________________________
City Advocate Weekly Replaces Priority Focus in January
The League is pleased to announce a new name for its weekly newsletter: City Advocate Weekly.
With a tag line of “Legislation and Policy Affecting California Cities,” the renamed publication will
also feature a redesigned masthead. Stories will continue to focus on key legislation affecting
cities and other items of interest to city officials. 6
The League anticipates launching City Advocate Weekly sometime in January. Priority Focus will
remain in place until the rename is official and subscribers will automatically receive City
Advocate Weekly without having to re-subscribe.
____________________________________________________________________________
League Offices Temporarily Relocated
Mailing Address, Email Addresses and Phone Numbers Unchanged
City officials and others who visit the League’s Sacramento offices over the next 8 - 10 months
will find the League staff and most building tenants have temporarily relocated to offices at 770 L
Street while some long delayed work is done to replace the obsolete HVAC, plumbing and other
systems in the building. All mail should continue to go to our permanent address of 1400 K Street,
Sacramento, CA 95814 and all phone number and email addresses are unchanged.
____________________________________________________________________________
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: January 16, 2009
Issue #2-2009
Page 2: State Running Out Of Cash – How Did We Get Here?
Page 3: Bipartisan Commission to Review California’s Outdated Revenue Laws
Page 4: Legislative Committees Announced
Page 8: High Speed Rail Scoping Meetings Coming to Bay Area This Month
Page 9: City Officials to Attend League Events January 19-23 in Sacramento
Page 10: Attend the 3rd Annual Green CA Summit, March 16 – 18, 2009
Nominate an Outstanding Leader for the 2009 California Civic Leadership Institute
Page 11: PPIC Task Force Calls on State's Leaders to Act with Unity, Urgency on Plan for Federal Dollars
Page 13: Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
CONGRESS BEGINS WORK ON FEDERAL ECONOMIC STIMULUS PACKAGE
House Democratic leaders yesterday began unveiling an $825 billion economic stimulus package
featuring $550 billion in spending and $275 billion in tax breaks. There is much in this package of
great interest to local officials concerned about the effects of home foreclosures, job losses,
reduced sales, property taxes and other factors having a direct impact on local communities. A
summary of the release is available at
http://www.cq.com/flatfiles/editorialFiles/temporaryItems/2008/15stimulus.pdf.
For more, see Page 2.
••••••••••••••••••••••••••••••••••••
BUDGET AGREEMENT STILL ELUDES STATE LEADERS
With California a few short weeks away from running out of cash, there was little visible progress
this week on a resolution to the state’s $42 billion, 18-month budget deficit. The “Big Five” met to
discuss options, but a budget agreement still seemed to elude the key budget players.
For more, see Page 2.
••••••••••••••••••••••••••••••••••••
LEAGUE BOARD PRESIDENT A SPECIAL
GUEST AT STATE OF THE STATE SPEECH
League Board President Judy Mitchell, mayor of Rolling Hills Estates, was among the special
guests of Gov. Arnold Schwarzenegger yesterday, invited to view his State of the State speech in
the Assembly gallery. For more, see Page 2.
2
‘Stimulus’ Continued from Page 1…
The House Ways & Means also released a summary of the tax provisions that it will be
considering as its part of the package next week. It can be viewed at
http://www.cq.com/flatfiles/editorialFiles/temporaryItems/2008/15taxstimulus.pdf.
League staff are just beginning to review the many proposals contained in this package. There is
little detailed information available at this point. We will keep city officials informed as more
information becomes available.
Please note that we have created a Federal Economic Stimulus Update
http://www.cacities.org/index.jsp?displaytype=11&zone=locc§ion=&sub_sec=&tert=&story=2
7580 story on the League Web site. We will use this to post any documents we receive relating to
the federal package.
_____________________________________________________________________________
‘Budget’ Continued from Page 1…
Yesterday Gov. Arnold Schwarzenegger delivered his annual State of the State speech – a full
two weeks following the Administration’s release of his budget proposal to correct both the
current year deficit, and provide a spending plan for the 2009-10 fiscal year. It was a shorter and
far more subdued speech than his presentations in past years. He described the state as
“incapacitated” and facing a true emergency. He urged the senators and assembly members
gathered before him in the Assembly chambers to put ideology aside for the good of the state,
and to work together to find a budget solution.
_____________________________________________________________________________
‘Mitchell’ Continued from Page 1…
“It was a somber speech,” commented Mitchell. “He was
very clear about telling legislators that it was critical that
they work together to resolve this terrible budget crisis
quickly.”
Mitchell noted that the speech contained no references to
local governments, and that the Administration budget
proposal released two weeks ago contained no new
proposals to borrow redevelopment funds from local
agencies.
“Our city officials need to remain alert and engaged,” she
cautioned. “We need to continue to support the efforts of
state leaders to find long-term solutions to their budget
problems that don’t involve shifts of local funds.”
_____________________________________________________________________________
State Running Out Of Cash – How Did We Get Here?
While the budget stalemate between legislators and Gov. Arnold Schwarzenegger continues, the
deficit continues to grow. Without a fix, state budget experts estimate that the California state
budget deficit will reach $42 billion over the next 18 months. The State Controller has warned
that cash resources will dry out as early as next month if the Legislature does not act to correct
the budget imbalance, forcing the state to issue IOUs to its vendors and to delay refunds for
taxpayers.
Many city officials may be asking, how could this be? How could the state of California reach
such a critical condition?
California State Association of Counties
President Gary Wyatt and League Board
President Judy Mitchell, Mayor of Rolling
Hills Estates. 3
Simply put, the state’s total expenses exceed the resources it has available to spend. Whatever
fix the Governor and legislators may agree upon to balance the budget, a significant factor in the
state’s deficit is mainly the shrinking state general fund revenues, exacerbated by deteriorating
economic conditions nationally and worldwide.
The Department of Finance calculates a $31 billion discrepancy between the estimated revenues
for the budget years 2007-08, 2008-09, 2009-10, and actual revenues received. More than $17.7
billion of that amount is attributable to declining personal income tax revenue, about half of which
is associated with reduced capital gains, the other half due to changing economic conditions.
About $5.9 billion results from a decline in sales and use tax revenue, caused by reduced
disposable income among taxpayers and fewer auto sales, as well as reduced transfers to
transportation funds due to lower forecasted gas prices. About $4.9 billion of the loss results from
reduced corporation franchise and income tax receipts, due to declining corporate profits. Another
$1.3 billion is due to declining property tax revenues.
Behind these cold numbers are three culprits:
• Job Losses. Between June and October 2008, the state lost 47,100 jobs -- an average of
15,700 job losses per month, and a tripling of the 5,200 monthly job losses occurring in the
first five months of the year. While modest job gains were seen in health services,
government, leisure and hospitality, education, and natural resources and mining, job losses
occurred in major industry sectors such as trade, transportation, utilities, professional and
business services, manufacturing, construction, financial activities and the information sectors.
The state unemployment rate hit 8.2 percent in October, the highest since September 1994,
and the largest year-over-year increase since December 1982.
• Construction Hit Hard. Residential permits were down 48 percent from October 2007 to
October 2008, as the fifth consecutive month-over decline hit the industry, recording the
lowest level of activity in decades. Single-family permits were down 44 percent, while multi-
family permitting was down 53 percent. Slowing office and retail construction led to
nonresidential construction permits falling 36 percent in October from a year earlier, making
the month the weakest since February 2004.
• Home Sales. Weakening home prices contributed to increase in the numbers of existing
home sales in October -- more than twice the rate of sales posted a year earlier. However, the
median price of existing, single-family homes sold was 40 percent less than last year.
Need More Information? For more information on how California got to where it is today, please
view the following documents from the Department of Finance Web site:
• General Fund Workload Revenue Forecast
http://www.dof.ca.gov/budget/historical/2008-09/documents/GF_Workload_Rev.pdf
• Department of Finance Bulletin, December 2008
http://www.dof.ca.gov/finance_bulletins/2008/December/documents/Dec-08.doc
_____________________________________________________________________________
Bipartisan Commission to Review California’s Outdated Revenue Laws
On Oct. 30, 2008, Gov. Arnold Schwarzenegger signed Executive Order S-12-08 to create the
bipartisan commission on the 21st Century Economy, tasked with reviewing California's 80 year-
old revenue-gathering laws and making recommendations on how to modernize them. The
commission consists of 12 members -- six appointed by the Governor, three by the Speaker of
the Assembly, and three by the Senate President pro Tem. They will meet on Jan. 22 in San
Diego for the first time. The commission will deliver a report with recommendations on or before
April 15, following three consecutive meetings scheduled for Feb. 12 in Los Angeles, March 10 in
Berkeley, and April 9 in Davis. The meetings are open to the public. The commission will consider
how to:
• Establish a 21st century tax structure that fits with state's 21st century economy;
• Stabilize state revenues and reduce volatility; 4
• Promote the long-term economic prosperity of the state and its citizens;
• Improve California's ability to successfully compete with other states and nations for jobs
and investments;
• Reflect principles of sound tax policy including simplicity, competitiveness, efficiency,
predictability, stability and ease of compliance and administration; and
• Ensure that the tax structure is fair and equitable.
The members of the commission come from diverse backgrounds and will all serve without
compensation and at the pleasure of the official who appointed them.
The Governor’s appointees are:
• Gerald Parsky, chair of the commission. Parsky is currently the chairman of a private
investment firm and was assistant secretary of the U.S. Treasury Department from 1974
to 1977 in charge of international affairs and capital markets.
• Ruben Barrales, the president and chief executive officer for the San Diego Regional
Chamber of Commerce since 2006. In 2001 he was appointed as Deputy Assistant to
President George W. Bush and served as White House Director of Intergovernmental
Affairs.
• Michael Boskin, a senior fellow at the Hoover Institution and T.M. Friedman professor of
Economics at Stanford University.
• John Cogan, a senior fellow at the Hoover Institution and has also been a professor in
the public policy program at Stanford University since 1980.
• Becky Morgan, founder of the Morgan Family Foundation in 1993, and also served as a
member of the Santa Clara County Board of Supervisors from 1978 to 1980.
• Curt Pringle, mayor of the city of Anaheim since 2002, and the president of Curt Pringle
and Associates. Pringle was a California State Assembly member from 1988 to 1990 and
1992 to 1998 and served as Speaker of the Assembly in 1996.
Speaker of the Assembly Bass and Senate President pro Tem Steinberg’s appointees are:
• Christopher Edley, Jr., Dean of the University of California, Berkeley School of Law, has
served as an advisor to former President Clinton's One America Initiative. He was a
member of the United States Commission on Civil Rights, and chaired President Clinton's
1998 Affirmative Action Review. He was an advisor to President Elect Barack Obama
during the 2008 Democratic primaries.
• George Halvorson, chairman and chief executive officer of Kaiser Foundation Health Plan
and Kaiser Foundation Hospitals since 2002.
• Jennifer Ito, the research, training and policy education director of SCOPE (Santa Clarita
Organization for Planning the Environment) a community-based organization dedicated
to reducing and eliminating structural barriers to social and economic opportunities for
poor and working class communities.
• Fred Keeley, a political science professor at San Jose State University, and the treasurer
of Santa Cruz County since 2005. From 1996 to 2002, he served as a California State
Assembly member where he also served as Speaker pro Tempore of the Assembly.
• Monica Lozano, publisher and chief executive officer of La Opinión, and also served as
senior vice president of its parent company, ImpreMedia. Lozano is a member of the
University of California Board of Regents and serves as a trustee of the University of
Southern California and SunAmerica Asset Management Corporation. She is also the
director of the California Health Care Foundation.
• Richard Pomp, professor of law at the University of Connecticut. Pomp also works as a
consultant to cities, states, the Multistate Tax Commission, the Navajo Nation, the U.S.
Congress, the U.S. Treasury, the U.S. Department of Justice, Internal Revenue Service,
United Nations, the International Monetary Fund, the World Bank and numerous foreign
countries.
Please visit the Web site for the Commission on the 21st Century Economy
(http://www.cotce.ca.gov/) for more information on meetings schedules, agendas and minutes.
League Staff will be monitoring the commission’s activities, and report to cities as their work
develops.
_____________________________________________________________________________ 5
Legislative Committees Announced
The Senate and Assembly this week announced the formation of legislative committees for the
2009-10 session. The Senate announced both the chairs of the committees and committee
members. The Assembly only announced committee chairs and vice chairs.
City officials should review this information carefully to become familiar with the assignments of
their legislators. This information will become increasingly important as the legislative session
kicks into gear.
Senate Committee Appointments, 2009-10 Legislative Session
Appropriations
Kehoe (Chair), Cox (Vice Chair), Yee, DeSaulnier, Corbett, Leno, Oropeza, Hancock, Wolk,
Runner, Wyland, Walters, Denham
Banking, Finance & Insurance
Calderon (Chair), Runner (Vice Chair), Florez, Kehoe, Lowenthal, Correa, Padilla, Liu, Cox,
Harman
Budget & Fiscal Review (All 39 senators, plus 1 vacancy)
Budget Subcommittees - three voting members:
Subcommittee #1: Education
Romero (Chair), Huff, Liu
Subcommittee #2: Resources, Environmental Protection, Energy, & Transportation
Simitian (Chair), Cogdill, Lowenthal
Subcommittee #3: Health & Human Services, Labor & Veteran's Affairs
Leno (Chair), Alquist, Hollingsworth
Subcommittee #4: State Administration, General Government & Judicial
DeSaulnier (Chair), Wright, Harman
Subcommittee #5: Revenues and the Economy
Ducheny (Chair), Padilla, Dutton
Business, Professions & Economic Development
Negrete McLeod (Chair), Wyland (Vice Chair), Correa, Florez, Corbett, Romero, Yee, Oropeza,
Aanestad, Walters
Education
Romero (Chair), Huff (Vice Chair), Simitian, Alquist, Padilla, Hancock, Liu, Wyland, Maldonado
Elections, Reapportionment & Constitutional Amendments
Hancock (Chair), Walters (Vice Chair), DeSaulnier, Liu, Cogdill
Energy, Utilities and Communications
Padilla (Chair), Benoit (Vice Chair), Calderon, Simitian, Lowenthal, Kehoe, Wright, Corbett, Cox,
Strickland
Environmental Quality
Simitian (Chair), Runner (Vice Chair), Hancock, Corbett, Lowenthal, Pavley, Ashburn
Food and Agriculture
Florez (Chair), Maldonado (Vice Chair), Pavley, Hancock, Hollingsworth 6
Governmental Organization
Wright (Chair), Harman (Vice Chair), Negrete McLeod, Oropeza, Yee, Wiggins, Florez, Romero,
Calderon, Padilla, Denham, Wyland, Benoit
Health
Alquist (Chair), Strickland (Vice Chair), Cedillo, Negrete McLeod, Wolk, Pavley, DeSaulnier,
Leno, Cox, Maldonado, Aanestad
Human Services
Liu (Chair), Maldonado (Vice Chair) Yee, Alquist, Hollingsworth
Judiciary
Corbett (Chair), Harman (Vice Chair), Florez, Leno, Walters
Labor & Industrial Relations
DeSaulnier (Chair), Wyland (Vice Chair), Leno, Yee, Negrete McLeod, Cogdill
Legislative Ethics
Walters (Chair), Lowenthal (Vice Chair), Corbett
Local Government
Wiggins (Chair), Cox (Vice Chair), Kehoe, Wolk, Aanestad
Natural Resources and Water
Pavley (Chair), Hollingsworth (Vice Chair), Kehoe, Wiggins, Leno, Wolk, Simitian, Padilla, Benoit,
Cogdill, Huff
Public Employment and Retirement
Correa (Chair), Ashburn (Vice Chair), Negrete McLeod, Wiggins, Padilla, Liu, Benoit
Public Safety
Leno (Chair), Benoit (Vice Chair), Cedillo, Wright, Steinberg, Hancock, Huff
Revenue & Taxation
Wolk (Chair), Walters (Vice Chair), Alquist, Wiggins, Florez, Runner, Ashburn
Rules
Steinberg (Chair), Aanestad (Vice Chair), Cedillo, Oropeza, Dutton
Transportation and Housing
Lowenthal (Chair), Huff (Vice Chair), Oropeza, Pavley, Simitian, Kehoe, Wolk, DeSaulnier,
Ashburn, Harman, Dutton
Veterans Affairs
Denham (Chair), Correa (Vice Chair), Wiggins, Negrete McLeod, Cedillo, Wyland, Maldonado
Assembly Committee Chairs and Vice-Chairs, 2009-10 Session
Accountability and Administrative Review
Hector De La Torre, D-South Gate, chair
Audra Strickland, R-Thousand Oaks, vice chair
Aging and Long-Term Care
Bonnie Lowenthal, D-Long Beach, chair
Norma Torres, D-Ontario, vice chair
Agriculture
Cathleen Galgiani, D-Stockton, chair
Tom Berryhill, R-Modesto, vice chair
7
Appropriations
Kevin De León, D-Los Angeles, chair
Jim Nielsen, R-Gerber, vice chair
Arts, Entertainment, Sports, Tourism and Internet Media
Mike Davis, D-Los Angeles, chair
Jim Silva, R-Huntington Beach, vice chair
Banking and Finance
Pedro Nava, D-Santa Barbara
Ted Gaines, R-Roseville, vice chair
Budget
Noreen Evans, D-Santa Rosa, chair
Roger Niello, R-Fair Oaks, vice chair
Business and Professions
Mary Hayashi, D-Hayward, chair
Bill Emmerson, R-Redlands, vice chair
Education
Julia Brownley, D-Santa Monica, chair
Brian Nestande, R-Riverside, vice chair
Elections, Redistricting and Constitutional Amendments
Warren Furutani, D-South Los Angeles, chair
Anthony Adams, R-Hesperia, vice chair
Environmental Safety and Toxic Materials
Wesley Chesbro, D-Eurkea, chair
Jeff Miller, R-Corona, vice chair
Governmental Organization
Curren Price, D-Inglewood, chair
Joel Anderson, R-Alpine, vice chair
Health
Dave Jones, D-Sacramento, chair
Nathan Fletcher, R-San Diego, vice chair
Higher Education
Anthony Portantino, D-La Cañada Flintridge, chair
Connie Conway, R-Tulare, vice chair
Housing and Community Development
Tony Mendoza, D-Norwalk, chair
Diane Harkey, R-Dana Point, vice chair
Human Services
Jim Beall Jr., D-San Jose, chair
Tom Ammiano, D-San Francisco, vice chair
Insurance
Joe Coto, D-San Jose, chair
Martin Garrick, R-Carlsbad, vice chair
Jobs, Economic Development and the Economy
V. Manuel Pérez, D-Coachella, chair
Dan Logue, R-Linda, vice chair 8
Judiciary
Mike Feuer, D-Los Angeles, chair
Van Tran, R-Costa Mesa, vice chair
Labor and Employment
Sandré Swanson, D-Alameda, chair
Bill Berryhill, R-Ceres, vice chair
Local Government
Anna Caballero, D-Salinas, chair
Steve Knight, R-Palmdale, vice chair
Natural Resources
Nancy Skinner. D-Berkeley, chair
Danny Gilmore, R-Hanford, vice chair
Public Employees, Retirement and Social Security
Ed Hernandez, D-West Covina, chair
Paul Fong, D-Mountainview, vice chair
Public Safety
Jose Solorio, D-Anaheim, chair
Curt Hagman, R-Chino Hills, vice chair
Revenue and Taxation
Charles Calderon, D-Montebello, chair
Chuck DeVore, R-Irvine, vice chair
Rules
Ted Lieu, D-Torrance, chair
Sam Blakeslee, R-San Luis Obispo, vice chair
Transportation
Mike Eng, D-Monterey Park, chair
Kevin Jeffries, R-Lake Elsinore, vice chair
Utilities and Commerce
Felipe Fuentes, D-Sylmar, chair
Mike Duvall, R-Yorba Linda, vice chair
Veterans Affairs
Mary Salas, D-Chula Vista, chair
Paul Cook, R-Yucca Valley, vice chair
Water, Parks and Wildlife
Jared Huffman, D-San Rafael, chair
Jean Fuller, R-Bakersfield, vice chair
Joint Legislative Audit Committee
Bill Monning, D-Santa Cruz, chair
____________________________________________________________________________
High Speed Rail Scoping Meetings Coming To Bay Area This Month
The California High Speed Rail Authority (Authority) will hold a series of environmental "scoping"
meetings designed to give local public officials and residents a chance to comment on individual
sections of the state's high-speed train system later this month.
Scoping meetings on some sections of the 800-mile high-speed train system in Southern
California already have occurred. Three meetings are scheduled this month in the San Francisco 9
Bay Area. These meetings are the first scheduled in Northern California since voter approval of
Prop. 1A, which will help finance the statewide network of trains operating at up to 220 miles an
hour.
Last year, the Authority approved broader program-level environmental reviews. Now the work
turns to project-specific technical studies, impact analyses and mitigation measures required
before construction can begin. Voter approval of Prop. 1A provides $9 billion as a financial
foundation for construction of the system, which will eventually link California's major population
centers from San Diego to Sacramento and San Francisco through the Central Valley.
More information about the Scoping Plan and the High Speed Rail project is available at:
http://www.cahighspeedrail.ca.gov/
____________________________________________________________________________
City Officials to Attend League Events January 19-23 in Sacramento
Hundreds of city officials will be in Sacramento next week for the League of California Cities’ New
Mayors and Council Members Academy, a League-sponsored reception for city officials and
legislators, and for meetings of the League’s policy committees.
The New Mayors and Council Members Academy will convene Jan. 21-23 at the Hyatt Regency
Hotel, across from the Capitol. The 2009 Academy features a range of educational sessions
designed to address the priorities and requirements newly-elected officials face as they assume
office. For more information on information on the Mayors and Council Members Academy,
please contact Brian Sanders at bsanders@cacities.org, or visit the League website at
www.cacities.org/events.
On Jan. 21 the League will host a special reception at the Citizen Hotel for city officials to meet
and visit with their legislators. The League will also recognize legislators who had shown
leadership and support for local government during 2008.
League Policy Committee meetings are scheduled for Jan. 21-22 at the Doubletree Hotel in the
Arden area, which is five miles from downtown Sacramento. The policy committee meeting
agendas for next week are posted on the League Web site. Please visit the main policy
committee webpage and select the committee of your choice for the corresponding agenda
packet (www.cacities.org/polcomm.)
• Administrative Services
http://www.cacities.org/index.jsp?displaytype=§ion=about&zone=locc&sub_sec=abo
ut_policy&tert=about_policy_admin_sel
• Community Services
http://www.cacities.org/index.jsp?displaytype=§ion=about&zone=locc&sub_sec=abo
ut_policy&tert=about_policy_comm_sel
• Employee Relations
http://www.cacities.org/index.jsp?displaytype=§ion=about&zone=locc&sub_sec=abo
ut_policy&tert=about_policy_employ_sel
• Environmental Quality
http://www.cacities.org/index.jsp?displaytype=§ion=about&zone=locc&sub_sec=abo
ut_policy&tert=about_policy_enviro_sel
• Housing, Community and Economic Development
http://www.cacities.org/index.jsp?displaytype=§ion=about&zone=locc&sub_sec=abo
ut_policy&tert=about_policy_housing_sel
• Public Safety
http://www.cacities.org/index.jsp?displaytype=§ion=about&zone=locc&sub_sec=abo
ut_policy&tert=about_policy_safety_sel
• Revenue and Taxation
http://www.cacities.org/index.jsp?displaytype=§ion=about&zone=locc&sub_sec=abo
ut_policy&tert=about_policy_revenue_sel\ 10
• Transportation, Communications & Public Works Policy Committee
http://www.cacities.org/index.jsp?displaytype=§ion=about&zone=locc&sub_sec=abo
ut_policy&tert=about_policy_trans_sel
Save-the-Date! The League’s Legislative Action Days is scheduled for April 15-16 at the
Sheraton Grand in Sacramento. Legislative Action Days are designed so that city officials can
learn about the latest on issues such as the budget, climate change regulatory efforts and
legislation, infrastructure bond implementation, land use, and other key legislation. This is a prime
opportunity for visiting city officials to meet with state legislators to deliver the message of the
importance of preserving local services. For more information about this event, please visit the
League Web site (www.cacities.org/events.)
___________________________________________________________________________
Attend the 3rd Annual Green CA Summit, March 16 – 18, 2009
Register now to attend the 3rd Annual Green California Summit, to be held March 8 – 10, at the
Sacramento Convention Center. You will gain insights that can help you conserve and cut costs.
The summit will provide information, training and resources that will increase understanding of
current environmental pressures and challenges and will support the efforts of both government
and private sectors to respond to these pressures in an efficient and economically sustainable
manner.
The summit offers six pre-conference workshops and 18 concurrent breakout sessions. The pre-
conference workshops are full-day (six-hour) sessions that will allow for in-depth exploration of
topics relevant to various aspects of green government. Pre-conference topics will cover Buying
Green, Green Fleets, Financing Renewable Energy Projects, LEED Project Management, Green
O&M and AB 32 Tool Kit for Local Government. Concurrent sessions will be 75 minutes in length
and feature ideas on transportation, energy, green building, green basics and climate change.
Discover hundreds of green products and services all in one place - talk to experts and get
intensive, hands-on education that's not available anywhere else! Free registration is offered to
attend the keynote speaker sessions and expo floor. Special group rates are available for teams
of four or more.
For questions please contact Cindy Dangberg at (916) 838-3339 or cdangberg@green-
technology.org. For more information please visit the Green Technology Summit Web site at
http://www.green-technology.org/gcsummit/attendees.htm.
____________________________________________________________________________
Nominate an Outstanding Leader for the 2009 California Civic Leadership Institute
The nomination process is open for the League’s 2009 California Civic Leadership Institute
(CCLI). Now in its fifth year, CCLI educates elected city officials who are interested in pursuing
future state office about key state issues. We are proud of the great leaders our organization has
produced, and pleased to be able to once again offer this prestigious program to interested city
officials.
Program Details
Presented by the League Partner Program, CCLI exposes city officials to a variety of complex
statewide priorities including transportation, housing, the impact of increasing energy demand on
our growing state, and more. The program is designed to give local leaders a broad, in-depth
understanding of critical issues affecting the state; highlight the tools they will need to succeed if
elected to the Legislature; and provide a forum where lasting bonds can be created among
California’s rising leaders.
CCLI features informal roundtable discussions and takes participants out in the field. The
program includes a tour of Big Creek, Southern California Edison’s hydro-electric facility, giving 11
participants the opportunity to see first hand how electricity is generated and moved throughout
the state.
This year’s program is ideal for those already within leadership roles at the League or for anyone
interested in becoming a statewide advocate of local government.
Nomination Process
Any mayor, council member or professional city staff member may nominate a current elected city
official to participate in CCLI. Nominations may also come from any of the League’s caucuses or
from the League Partner Program.
Nominations must successfully convey the governance skills and accomplishments of the
nominee and should highlight any and all contributions toward League goals and/or the League’s
mission of protecting local control. Nominees will be sent an application packet. Applicants will be
asked to compose an essay outlining their individual goals and interests in the program.
Nominations are due by Friday, March 6.
The nomination form can be found at www.cacities.org/leaguepartners. Submit entries to
Samantha Caygill by email at scaygill@cacities.org or by fax at (916) 658-8240.
____________________________________________________________________________
[The following press release is reprinted with the permission from the Public Policy Institute of
California, a private, nonprofit organization dedicated to informing and improving public policy in
California through independent, objective, nonpartisan research on major economic, social, and
political issues.]
PPIC Task Force Calls on State's Leaders to Act with Unity, Urgency on Plan for
Federal Dollars
Bipartisan Group of Experts Offers Guidance on Response to Historic Crisis
SAN FRANCISCO, California, January 6, 2009 — California has an unprecedented opportunity to
take bold steps toward economic recovery but only if its elected leaders can unite to present a
clear plan for using federal dollars, according to a group of state leaders assembled by the Public
Policy Institute of California (PPIC).
The California Economic Recovery Task Force, established by the PPIC at the request of the
bipartisan leadership of the state legislature, was diverse in its membership but united in its
message: California faces a crisis of historic proportions that requires its elected leaders to make
a cogent case for the state’s needs in Washington, develop projects that support long-term
growth, and balance the state budget.
“This distinguished group was made up of Republicans and Democrats, business and labor, and
represented the major regions of the state,” said Mark Baldassare, PPIC president and CEO, who
presided at the group’s one-day meeting. “Despite their differences, they reached consensus
quickly and cordially. In these extraordinary times, we need our state’s leaders to do the same.”
PPIC began assembling the 12-member task force in November, consulted with its members in
early December, and convened the meeting on December 17 with the goal of providing
recommendations to legislative leaders by the end of the year. The task force reached consensus
on three central principles for undertaking economic recovery:
Plan for federal dollars. Task force members warned that failure to develop a comprehensive
plan for using federal funds on state infrastructure projects and budget needs would severely limit
the state’s economic recovery. The need is particularly pressing, they said, because other states
will have their own competing plans. Members emphasized the need to stem housing
foreclosures and specifically mentioned the need for federal intervention to reset mortgages for 12
homeowners who will face unaffordable interest rate increases in coming years. Members said
federal action was needed to unlock credit markets for state and local governments—and for the
small businesses and start-up companies that fuel growth in California’s economy.
Set the stage for long-term growth. California can be a national leader in developing
infrastructure projects that support environmental goals if leaders focus on long-term growth
rather than stop-gap measures, task force members said. They were unified in opposing action
that would hurt the state’s environmental leadership role or harm the health and safety of its
residents. They would not delay the regulation of diesel truck emissions, for example, despite its
short-term negative economic impact. Specifically, the group felt the state should:
• Prioritize infrastructure and “green” projects. The task force recommended that the
state consider infrastructure investment in two phases. The first would consist of projects,
such as road repair, that are ready to begin as soon as possible, use existing funds, and
would create jobs today. The second would encompass projects that take more time to
plan but could raise California’s long-term productivity and help the state achieve
environmental goals—for example, building a smart electricity grid.
• Consider ways to streamline state regulations. The group said leaders need to find
ways to spend faster on infrastructure projects and develop more flexibility in the system.
For instance, the state could benefit from exploring best practices for “design-build”
construction contracts. Most states allow these contracts, which allow a single company
to both design and build a project.
• Invest in education. Task force members emphasized the need for investing in
education facilities and programs at all levels in light of the growing gap between the
need for college-educated workers and the likely supply of these workers.
Balance the budget. The primary mandate of the task force was to focus on economic recovery,
but members were united in the view that steps to end the budget crisis should be considered
part of an economic recovery program. They said the state’s elected leaders must balance the
budget even though measures to do so run counter to economic recovery. Specifically, they
recommended that leaders:
• Choose budget-balancing actions that do the least harm. Members agreed that such
actions would need to take the form of tax increases and spending cuts but, given the
depth of the current downturn, specific fiscal actions should be considered in light of the
overall goal of economic recovery. Tax increases should be broad and temporary, with
the smallest possible negative effect on new consumer and business spending. Spending
cuts should have the smallest possible negative effect on overall employment.
• Pursue permanent, fundamental budget reform. The group agreed that annual state
budget crises pose a serious threat to the state’s long-term economic stability and
emphasized the critical importance of the Commission for the 21st Century Economy,
appointed by Governor Arnold Schwarzenegger and Assembly Speaker Karen Bass to
consider ways to restructure the tax system.
• Make a stronger case to use federal funds to help close the current budget gap. A
grant from the federal government would reduce the tax increases or spending cuts that
the state will otherwise have to make.
PPIC set up the California Economic Recovery Task Force at the request of Senate President pro
Tem Darrell Steinberg with the active support of Senate Republican Leader Dave Cogdill,
Assembly Speaker Karen Bass, and Assembly Republican Leader Mike Villines.
PPIC selected bipartisan leaders with experience in both the private and public sectors to co-
chair the task force: Kathleen Brown, senior advisor and head of public finance for the west
region at Goldman, Sachs & Co. and former California state treasurer, and Daniel Young,
president of the Irvine Community Development Company and a former mayor of Santa Ana. The
other members were: 13
• Alan Auerbach, director of the Robert D. Burch Center for Tax Policy and Public Finance
at the University of California, Berkeley
• Ruben Barrales, president and CEO of the San Diego Regional Chamber of Commerce
and former deputy assistant to President George W. Bush
• John Bryson, senior advisor for infrastructure initiative at Kohlberg Kravis Roberts & Co.
(KKR), former chairman and CEO of Edison International, and former president of the
California Public Utilities Commission
• Maria Contreras-Sweet, chair of Promerica Bank and former California secretary of
business, transportation, and housing
• Ed Grier, president of Disneyland Resort
• John Harris, president and CEO of Harris Ranch
• James W. Head, director of programs at The San Francisco Foundation and
commissioner for the Port of Oakland
• Noel Perry, founder of the nonprofit Next 10 and founder of the venture capital firm
Baccharis Capital Inc.
• Courtni Pugh, executive director of the Service Employees International Union (SEIU)
California State Council
• Fred Ruiz, chairman of Ruiz Foods and a regent of the University of California
____________________________________________________________________________
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.
_____________________________________________________________________________