WANT MORE DETAILS
ON BILLS?
Visit the League of
California Cities
website at
www.cacities.org/
billsearch.
Federal Update: House Democrats Complete “100-Hour” Legislative Agenda
Public Works Officers Institute Set for March
National League of Cities Adopts 2007 Advocacy Agenda
Find a Bill, Legislators, Leg Committee – or Ask League Leg Staff
League Forms Coastal Cities Issues Group
League Infrastructure T ask Force Reviews Policy Recommendations for 2007
Decker Appointed Executive Director of the California Debt and Investment Advisory Commission
League Continues Survey on Retiree Health Benefits
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January 26, 2007 Issue #4-2007
Sen. Tom Torlakson was honored with the League of California Cities’
“Legislator of the Year” award for 2006. The award was given at a special
dinner following the League’s Legislative Reception on Wednesday, January
10, at Frank Fat’s in Sacramento. For more, see Page 6.
The Southern California Association of Governments (SCAG) is getting
ready to assign the fair share housing numbers to the region’s cities and
counties. This year, however, SCAG is seeking a couple of changes to the
process in order to help fund the Regional Housing Needs Allocation (RHNA) ,
which receives no direct support from the state.
For more, see Page 7.
The Legislative Analyst’s Office (LAO) has been busy this month, releasing
a preliminary analysis of Gov. Schwarzenegger’s proposed budget, and a
report on the implementation of the 2006 bond package.
For more, see Page 5.
TORLAKSON HONORED AS “LEGISLATOR OF THE YEAR”
SCAG REGIONAL HOUSING NEEDS
ALLOCATION BILL ON FAST TRACK
LAO RELEASES ANALYSES ON BUDGET, BONDS
Page 2
Page 4
Page 5
Page 3Visit the League’s Official Website--www.cacities.org PAGE 2 - PRIORITY FOCUS
January 26, 2007 - Issue #4
House Democrats completed the last bill of
their first “100-Hour” legislative agenda on January
18. The House finished work on the seven-
measure campaign in about 42 hours of floor time.
Of all of the bills passed by the House during
the “100-Hour” campaign, H.R. 1, which embodies
elements of the 9/11 Commissions recommenda-
tions, would likely impose the greatest impact on
California cities if it were signed into law. Other
topics included legislation to reform the lobbying
and earmark process, increase the federal mini-
mum wage, expand stem cell research, permit the
federal government to negotiate lower prescription
drug costs, cut interest rates on student loans,
and invest in renewable energy.
The bill includes provisions which would
allocate homeland security grant funding based on
risk of terrorist attack, and reduce the small state
minimum (SSM) guarantee from the current 0.75
percent of total funding to 0.25 percent, except for
a guarantee of 0.45 percent for any border state.
This change would increase California’s percent-
age share of total funding.
While potentially good news for California
cities, H.R. 1 must still receive Senate consider-
ation. It will be difficult to secure sufficient support
for reducing the SSM due to strong opposition
from senators representing small population
states, which greatly outnumber big population
states such as California, Texas, New York, and
Florida.
H.R. 1 also would establish a new
interoperable communications grant program
where monies, as necessary, would be authorized
in the first fiscal year after the completion of a
national emergency communications plan. The
Department of Homeland Security also first must
determine that substantial progress has been
made toward development and circulation of
emergency communications equipment and
technology standards.
So far, the Senate hasn’t been as productive
as the House, passing only lobbying and earmark
reform legislation, and is currently debating a
federal minimum wage increase/tax package.
Many of the other bills of the House “100-Hour”
campaign must still navigate the more slowly
operating and narrowly divided Senate.
Following that activity, both houses will briefly
return to other legislative work and prepare to
accept and respond to the president’s FY 2008
budget proposal. The president will offer the
budget for the coming fiscal year on February 5.
FEDERAL UPDATE: HOUSE DEMOCRATS COMPLETE
“100-HOUR” LEGISLATIVE AGENDA
The Public Works Officers Institute, co-
sponsored by the League of California Cities and
the County Engineers Association of California, is
set for March 14-16 at the Hyatt Regency hotel in
Monterey.
This year the program will feature an update
on the future of transportation in California, tele-
communications changes, a CalPERS update,
and much more! Hotel rooms are almost sold
out, so be sure to register soon. The conference
and hotel registration deadline is Wednesday,
February 21.
To register, visit www.cacities.org/events.
Those registering online will receive a $20
CityBooks coupon. Questions about this event
should be directed to Paul Flint at (916) 658-8238
or via e-mail at flint@cacities.org.
? ? ?????????????????????
PUBLIC WORKS OFFICERS
INSTITUTE SET FOR MARCHPRIORITY FOCUS - PAGE 3 Visit the League’s Official Website--www.cacities.org
January 26, 2007 - Issue #4
In mid-January, the National League of Cities
(NLC) adopted its 2007 lobbying priorities for the
110th Congress. The priorities include telecom-
munications reform, immigration, and efforts to
secure continued federal funding to support local
initiatives including housing, transportation, and
public safety. These priorities will be the basis for
the program planning for NLC’s 2007 Annual
Congressional City Conference in Washington,
D.C., on March 10-14.
NLC’s goals are summarized below:
Telecommunications
• Protecting local authority in any reform of
the Telecommunications Act, in Congress or by
the Federal Communications Commission,
stressing the need to provide access to all ser-
vices for all constituents while protecting the public
rights of way, as well as insuring that new tech-
nologies such as providing telephone service over
the Internet provides adequate linkages to 911 and
protects the public’s safety.
Immigration
• Ensuring that comprehensive immigration
reform takes into account the impact on cities and
towns and includes the local government perspec-
tive.
Federal Funding to Support Local Initiatives
• Ensuring that sufficient funding is included
in any appropriations measures involving federal
support for local activities such as the Community
Development Block Grant program and other
housing programs, crime programs, and transpor-
tation funding.
• Targeting federal attention on critical local
housing issues, including predatory lending,
foreclosure prevention, and the country’s mort-
gage finance system.
Additionally, NLC officials recognized that
there are other state and federal issues that
require attention. These include:
• Developing a more holistic approach to
addressing public safety issues, including federal,
state and local strategies to address the current
surge in violent crime.
• Participating as an equal partner in devel-
oping strategies for the next generation of trans-
portation funding to ensure they meet the multiple
demands of congestion, rehabilitation and multi-
modal systems facing municipalities.
• Identifying and sharing promising practices
to promote sustainable resources and energy
efficiency, while seeking a responsible federal
energy policy.
Similarly, every year the League of California
Cities adopts its own set of federal priorities. For
a copy of the federal priorities adopted in Novem-
ber by the League board of directors, please visit
the League’s Legislative Resources web page at
www.cacities.org/legresources.
For more information, please contact League
Legislative Analyst Genevieve Morelos at
gmorelos@cacities.org.
NATIONAL LEAGUE OF CITIES ADOPTS 2007 ADVOCACY AGENDA
Visit (and bookmark!) the League’s
Legislative Resources 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.
FIND A BILL, LEGISLATORS,
LEG COMMITTEE – OR ASK
LEAGUE LEG STAFFVisit the League’s Official Website--www.cacities.org PAGE 4 - PRIORITY FOCUS
January 26, 2007 - Issue #4
First Meeting Scheduled for Early March
The League of California Cities’ Coastal Cities
Issue Group (CCIG) will hold its first official meeting
in El Segundo on March 9. The League’s board of
directors approved the formation of CCIG in Novem-
ber 2006 to better address coastal issues of inter-
est and to improve communication with the Coastal
Commission.
The primary purpose of the initial meeting is to
establish future goals and a work plan for the
group. Fort Bragg Council Member Jere Melo will
serve as the group’s chair, having been appointed
by League President Maria Alegria. Larry Clark,
council member, Rancho Palos Verdes and Mike
Jenkins, city attorney, Hermosa Beach, will serve as
co-vice chairs.
A “save the date” notice was sent to all coastal
cities. Additional background information will be
available in mid-February. In the meantime, all
coastal cities are encouraged to send at least one
representative to the March 9 meeting in El
Segundo, a coastal city near the Los Angeles
airport.
Earlier this week, California State Treasurer Bill Lockyer announced his appointment of John Decker
as Executive Director of the California Debt and Investment Advisory Commission (CDIAC).
Lockyer spoke highly of Decker’s experience working in the California Legislature, citing his work in
crafting state budgets and addressing public policy issues as key factors why he was appointed to the
position.
Decker recently served as consultant to the State Senate Appropriations Committee. His prior experi-
ence includes serving as a consultant in the State Senate Office of Research, staff director for the State
Senate Budget Committee and chief fiscal advisor to the State Assembly Speaker’s Office.
CDIAC provides information, education and technical assistance on public debt, investments and
economic development financing tools to local public agencies and public finance professionals. CDIAC
serves as the state’s clearinghouse for debt issuance information and compiles data from all city, county
and state government debt issuers in California. The data collected is available to public agencies.
CDIAC also organizes educational seminars on public finance matters and the debt issuance process.
The League of California Cities Infrastructure
Task Force held its first meeting of the year on
Thursday, January 25. The group reviewed and
formulated a set of infrastructure policy recommenda-
tions to guide League advocacy on implementation of
the November 2006 bond package.
The Task Force reviewed the League’s Principles
on Infrastructure Investment developed last year as
well as the League’s Smart Growth Principles. The
group also received input from League policy commit-
tees, which met in early January and held discussions
on infrastructure bond allocation issues.
For a complete breakdown of the infrastructure
bond funding allocation, please visit www.cacities.org/
infrastructure. The task force will present the guide-
lines and recommendations to the board of directors
at the board’s meeting in Oakland on February 9-10.
The task force is chaired by League First Vice
President and San Diego Council Member Jim
Madaffer. Sacramento Mayor Heather Fargo, the
League’s second vice president, serves as vice chair.
A complete roster of the task force can be found at
www.cacities.org/infrastructure.
LEAGUE INFRASTRUCTURE TASK
FORCE REVIEWS POLICY
RECOMMENDATIONS FOR 2007
LEAGUE FORMS COASTAL
CITIES ISSUES GROUP
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DECKER APPOINTED EXECUTIVE DIRECTOR OF THE CALIFORNIA
DEBT AND INVESTMENT ADVISORY COMMISSIONPRIORITY FOCUS - PAGE 5 Visit the League’s Official Website--www.cacities.org
January 26, 2007 - Issue #4
In November 2006, the League mailed a
survey to cities asking for certain information on
Other Post Employment Benefits (OPEBs). The
goal of the survey was to get an assessment of
the costs of public retiree health care coverage
among cities. After receiving only 135 responses
from 478 cities, the League chose to continue the
collection period so that a more complete assess-
ment can be made.
The Governmental Accounting Standards
Board (GASB) is requiring this information be
gathered and publicly disclosed to record the
financial position of cities across the nation. Gov.
Schwarzenegger has established a Commission
on Post Employment Benefits, which will be
looking at pension costs, retiree health care costs
and other health care system issues.
The information we are requesting from your
city is necessary to properly represent city inter-
ests with the commission, as well as the legisla-
ture and Governor’s office.
The League’s retiree health benefit survey is
available online and can be completed by visiting
www.cacities.org/rhbsurvey. Please forward the
survey link to your city’s budget manager, auditor,
and benefits administrator or the staff most suited
to complete it.
If you have any questions or would like a copy
of the survey in PDF format, please contact Mary
Creasey at (916) 658-8243 or by e-mail at
mcreasey@cacities.org. We request that you
return the completed Retiree Health Benefits
Survey by Friday, February 16!
LEAGUE CONTINUES SURVEY ON
RETIREE HEALTH BENEFITS
In its analysis, the LAO reported that the
Governor’s proposed budget includes only a few
program expansions and instead proposes a
number of budget-balancing actions. Those
actions include a major redirection of transporta-
tion funds and significant reductions in social
services. If the assumptions in the proposed
budget were to occur, the LAO believes that the
Governor’s proposal would be balanced and
provide a healthy reserve of the 2007-08 year.
Although that is good news for California’s
fiscal stability, the LAO also feels that several
assumptions in the Governor’s budget are either
overly optimistic or risky, which could ultimately
impact the reserve.
A complete analysis of the Governor’s pro-
posed budget will be released in February. LAO’s
preliminary budget proposal analysis can be
accessed online at www.lao.ca.gov.
LAO Reviews Bond Package. On January 22,
the LAO released a report entitled “Implementing
the 2006 Bond Package: Increasing Effectiveness
Through Legislative Oversight.” In the report, the
LAO noted that with more than $18 billion allo-
cated to new programs, effective legislative
oversight is critical to the success of the pro-
grams.
The report offers recommendations to assist
the Legislature in implementation of the November
2006 bond package. The report is available online
at www.lao.ca.gov.
LAO from page 1
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Restore and protect local control for cities
through education and advocacy to enhance
the quality of life for all Californians.
Our MissionVisit the League’s Official Website--www.cacities.org PAGE 6 - PRIORITY FOCUS
January 26, 2007 - Issue #4
Torlakson, a former council member from
Antioch and Contra Costa County supervisor, has
been instrumental in authoring legislation to
protect local revenues from state raids. In 2006,
Torlakson authored SCA 7 to constitutionally
protect Prop. 42 funds, the sales tax on gasoline,
for use on transportation projects. This measure
was on the November 2006 ballot as Prop. 1A,
which passed by 77 percent, and will generate
more than $600 million annually for maintaining
local streets and roads.
The dinner was attended by the League’s execu-
tive officers and hosted by the League Partners
program. In addition to the League officers, the
event was also attended by Lynn Jacobs, director
of the California Department of Housing and
Community Development; Sen. Gloria Negrete
McLeod, chair of the Senate Local Government
Committee; and Assemblymember Anna Cabal-
lero, chair of the Assembly Local Government
Committee.
Torlakson was a co-recipient of the 2006
League Legislator of the Year award. Sen. Bob
Dutton was also honored, having received his
award at the League’s annual conference in San
Diego last September. Dutton was a principal
leader on the infrastructure deal in 2006 and went
to great lengths to ensure that Prop. 1B, the
transportation bond, included $1 billion each for
cities and counties.
Núñez Receives Award at League
Legislative Reception
Earlier that evening, at the League’s Legislative
Reception at the Senator Hotel, Assembly Speaker
Fabian Núñez was honored for his work on the
infrastructure bond package in 2006. Núñez was
presented with a ceremonial shovel to commemo-
rate his efforts by League President Maria Alegria.
Núñez joins fellow infrastructure shovel recipi-
ents Gov. Arnold Schwarzenegger, Senate Presi-
dent Pro Tem Don Perata, Sen. Dick Ackerman,
Sen. Bob Dutton, Sen. Alan Lowenthal, Sen. Tom
Torlakson and Assemblymember George Plescia.
Núñez was not able to attend the League’s Legisla-
tive Action Days in May 2006 when the shovels
were presented.
To view a photo gallery of the League’s Legisla-
tive Reception, visit www.cacities.org/leggallery.
LEG OF THE YEAR from page 1 ?????????????????????????????????????? ? ? League President Maria Alegria presents the
“Legislator of the Year” award to Sen. Torlakson.
League President Maria Alegria awards Assembly
Speaker Fabian Núñez with a commemorative shovel for
his work on infrastructure.PRIORITY FOCUS - PAGE 7 Visit the League’s Official Website--www.cacities.org
January 26, 2007 - Issue #4
SCAG is aligning its housing allocation pro-
cess with the growth allocation process under its
regional transportation plan (RTP). The legislation
SCAG is sponsoring (SB 12 – Lowenthal) seeks
authorization to do this and also requests some
procedural changes to assure that local agencies
have enough time to bring their housing elements
into compliance before the legislative deadline.
Given the timeline involved, Sen. Lowenthal has
introduced it as an urgency bill that will take effect
before the legislative year ends.
SB 12 is specific to the region, the League’s
goal in analyzing this bill was to acknowledge the
realities faced by SCAG in a way that did not
undermine the multi-stakeholder agreement made
three years ago by the Housing Element Working
Group. That agreement resulted in amendments
to the housing element process introduced by
Assemblymember Gene Mullin (AB 2348) and
then Assemblymember (now Senator) Alan
Lowenthal (AB 2158).
From the statewide perspective, SB 12 does
not undermine the housing element process. It
makes the following changes to the RHNA alloca-
tion process:
• Aligns the RHNA process with the regional
transportation plan to integrate housing planning
with transportation planning
• Allows SCAG to replace the RHNA survey
requirement with a series of 14 public workshops
(which SCAG has already completed) to solicit
local input
• Clarifies that a city or county may only file
one appeal
• Requires SCAG to provide a written expla-
nation to each city and county as to the reasoning
behind providing the city or county its housing
numbers
Many local officials in the SCAG area are
uncomfortable with the fact that SCAG’s alloca-
tions may reinforce the Compass Blueprint
(www.compassblueprint.org), which has been a
voluntary program to focus the region’s growth in
strategic areas. The concern is that distributing
the housing allocation in a way that is consistent
with the Blueprint will morph a voluntary program
into a region-wide mandate.
While not taking away from the important
policy considerations raised by that concern, SB
12 does not address that issue. Accordingly, the
League continues to watch this bill and, given the
bill’s regional scope, is not likely to take a posi-
tion. The League encourages individual officials
within the SCAG region to look closely at this bill to
understand the changes and how it might affect
the RHNA process within the region.
SCAG from page 1 ???????????????? ?????????????????????????????????
Don’t miss this opportunity to get the
League’s most useful reference tool.
This comprehensive California
directory provides important contact
information for mayors, council
members and city department heads.
The directory also features the
League’s staff directory, League
partners, affiliate organizations and a
wide variety of advertisers.
INFORMATION YOU NEED, RIGHT
AT YOUR FINGERTIPS!
Purchase this publication online at
www.cacities.org/store or call (916)
658-8257 for an order form. City
officials price $30, non-city officials
price $65, plus shipping & handling.
2006 CITY HALL
DIRECTORY
WANT MORE DETAILS
ON BILLS?
Visit the League of
California Cities
website at
www.cacities.org/
billsearch.
California Civic Leadership Institute: 2007 Program Call for Nominations
February Issue of Focus on Housing Published
California Cities Gather to Fight Gang Violence
Federal Update: House Debates Continuing Resolution to Fund all Federal Programs
Encouraging Health and Wellness for Californians: League Resolution
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February 2, 2007 Issue #5-2007
Page 2
Page 3
California’s Business, Transportation and Housing Agency (BTH) and the
California Environmental Protection Agency (Cal/EPA) jointly released the
Goods Movement Action Plan (GMAP) on January 11. GMAP affects approxi-
mately $3.1 billion in Prop. 1B funding. City officials are encouraged to review
the plan. For more, see Page 4.
The passage of the Infrastructure Bond package in November 2006 brings
much needed funding opportunities to California, particularly for transportation
projects. With the passage of Propositions 1A and 1B, however, many ques-
tions remain as to how this impacts future Prop. 42 allocations, the timing for
release of bond funds, and how all of this will affect cities. For more, see
Page 5.
FUNDING LOCAL STREETS AND ROADS:
WHAT CAN CITIES EXPECT IN 2007?
CITY OFFICIALS ENCOURAGED TO REVIEW
GOODS MOVEMENT PLAN
The Senate and Assembly have named and finalized the membership
rosters of all standing committees for the 2007-2008 legislative session.
For more, see Page 4.
MEMBERS OF THE ASSEMBLY AND SENATE
STANDING COMMITTEES FINALIZED
Page 4Visit the League’s Official Website--www.cacities.org PAGE 2 - PRIORITY FOCUS
February 2, 2007 - Issue #5
The League of California Cities is inviting all
city officials to participate in the third year of the
California Civic Leadership Institute (CCLI).
Presented by the League Partners Program,
CCLI is designed to educate small groups of city
officials on the pressing infrastructure issues
facing cities across the state, including housing,
energy and transportation, and the history and
importance of local government in California. The
program’s goal is to help future legislators to have
a better understanding of these issues and de-
velop lasting bonds among our state’s rising
leaders.
This year’s program agenda is ideal for those
already within leadership roles at the League, or
for anyone interested in becoming a statewide
advocate of local government.
Any mayor, council member or professional
city staff member may nominate a current city
official to participate in CCLI. Nominations may
also come from any of the League’s constituency
groups, or from the League Partners Program.
Nominations must successfully convey the
governance skills and accomplishments of the
nominee, and should highlight any and all contribu-
tions toward League goals and/or the League’s
mission of protecting local control. Nominees will
be mailed an application packet, in which they will
be asked to provide an essay outlining their
individual goals and interests in the program.
To submit a nomination, visit www.cacities.org/
ccli for the nomination form. Forms must be
submitted no later than 5 p.m. on Friday, March 2,
to Robb Korinke at rkorinke@cacities.org, or by
fax at (916) 658-8240.
CALIFORNIA CIVIC LEADERSHIP
INSTITUTE: 2007 PROGRAM
CALL FOR NOMINATIONS
The February 2007 edition of Focus on Hous-
ing, the League of California Cities’ monthly
electronic newsletter covering housing and hous-
ing affordability issues in the state was published
on Wednesday, January 31.
Articles of note include “Inclusionary Housing
in the Real World,” by Annabel Yurutucu from the
city of Sunnyvale, and “The Case for Smoke-Free
Multi-Unit Housing” by Joanne Wellman-Benson
from the California Department of Health Services
Tobacco Control Section.
In addition, the issue contains a summary of
housing news from across California, upcoming
housing forums, and much more! To read the
current issue and to subscribe, visit
www.cacities.org/focusonhousing or
www.imakenews.com/focusonhousing.
Your Input Needed! Focus on Housing
Subscriber Survey
Do you subscribe to Focus on Housing? If so,
the League is looking for your thoughts on the
publication! Please take part is this short online
survey that will help us to better provide you with
engaging stories and informative news. The
survey is located at www.cacities.org/
housingsurvey.
FEBRUARY ISSUE OF FOCUS ON
HOUSING PUBLISHED
Visit (and bookmark!) the League’s
Legislative Resources 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.
FIND A BILL, LEGISLATORS,
LEG COMMITTEE – OR ASK
LEAGUE LEG STAFFPRIORITY FOCUS - PAGE 3 Visit the League’s Official Website--www.cacities.org
February 2, 2007 - Issue #5
T eams from 13 California cities met in Oakland
on January 24 to identify and share successful gang
prevention policies and practices as part of their
participation in the California Cities Gang Prevention
Network.
Sponsored by the National League of Cities
(NLC) and the Oakland-based National Council on
Crime and Delinquency (NCCD), the two-day
meeting focused on building strategies that inter-
weave prevention, intervention, enforcement, and a
community’s “moral voice” as an alternative to
prison-only solutions.
Led by the mayors’ offices and law enforcement
officials, each city was a team of five to eight people
representing key stakeholders such as probation and
public health offices, schools, community-based
organizations, and the faith community. The teams
will work together to develop and refine comprehen-
sive, locally appropriate action plans to address gang
violence.
Participating cities included Fresno, Los Angeles,
Oakland, Oxnard, Richmond, Sacramento, Salinas,
San Bernardino, San Diego, San Francisco, San
Jose, Santa Rosa, and Stockton. The network is
funded by the California Wellness Foundation, the
California Endowment, the East Bay Community
Foundation, and the Richmond Children’s Founda-
tion, with additional support from the California Office
of the Attorney General and the city of Oakland.
A statewide advisory board will guide the ongoing
implementation of this new initiative. Planned activi-
ties for the network include:
• Development of a resource bank for added
information-sharing among cities;
• Publication of bulletins and strategic briefs on
lessons learned from collaboration;
• On-site assistance from NLC and NCCD to
participating cities in developing and
implementing local action plans, and;
• Recommendations for policy changes at the
state and federal level.
CALIFORNIA CITIES GATHER TO
FIGHT GANG VIOLENCE
Earlier this week, the House of Representa-
tives debated and passed House Joint Resolution
20 (H.J.R 20), which proposes to fund all federal
programs through the remainder of FY 2007 that
were not enacted through annual appropriations
bills by October 1, 2006 (the start of FY 2007).
The Senate should take up this measure by early
next week.
The remaining appropriations measures
include the Transportation-Treasury-Housing and
Urban Development; Science-State-Justice-
Commerce; Labor-Health and Human Services-
Education; Legislative Branch; Agriculture; Energy
and Water; Interior-EPA; Military Quality of Life;
and Foreign Operations Bill.
Programs under these bills are currently being
funded by a continuing resolution (CR) that
Congress passed in December 2006, which
extends funding for these programs at FY 2006
levels until February 15, 2007. Defense and
Homeland Security Appropriations are not covered
under the CR or the joint resolution, as Congress
passed the FY 2007 spending bills for these
programs shortly before adjourning to campaign
for elections in November.
While the House and Senate agreed to use
the FY 2006 conference agreement levels as the
baseline for funding federal programs in the
remaining nine FY 2007 bills in the joint resolution,
several programs utilized by local governments in
California did receive increases. These include
Section 8, public housing, homeless assistance,
and local law enforcement. For a summary of the
increases in the Joint Resolution, and a copy of
the bill, visit www.cacities.org/federalresources.
For more information, contact League Legisla-
tive Analyst Genevieve Morelos at
gmorelos@cacities.org or (916) 658-8254.
????????? ??????????????
FEDERAL UPDATE: HOUSE DEBATES
CONTINUING RESOLUTION TO FUND
ALL FEDERAL PROGRAMS
For more information on the California Cities
Gang Prevention Network, contact Leon Andrews at
(202) 626-3039.Visit the League’s Official Website--www.cacities.org PAGE 4 - PRIORITY FOCUS
February 2, 2007 - Issue #5
As California works to address the obesity
epidemic as well as health and wellness for all
citizens, the League continues its efforts to pro-
mote city wellness policies.
At the League’s 2006 Annual Conference, the
General Assembly passed a resolution to encour-
age health and wellness in cities. The resolution
stated that the League would work with the Com-
munity Services Policy Committee; the Recre-
ation, Parks, and Community Services Depart-
ment; the Institute for Local Government; and the
Cities Counties and Schools Partnership to de-
velop a clearinghouse of information that cities can
use to promote wellness policies and healthier
cities.
Under the resolution, Health and Wellness
programs will become a category in the Helen
Putnam Awards Program. For more information on
this resolution please visit www.cacities.org/
resolutions.
Proposed Trans Fat Ban: AB 97 (Mendoza)
The League is not alone in encouraging health
and wellness among Californians. In the State
Legislature, Assemblymember Tony Mendoza has
introduced AB 97, a bill that would ban food that
contain artificial trans fat from being stored, distrib-
uted or sold by a food facility.
The ban would not apply to foods sold or
served in the manufacturer’s original packaging,
nor would it apply to foods that contain less than
0.5 grams per serving of trans fat. Cities should
review the bill to determine if it impacts them.
Governor’s Fitness Challenge
Gov. Schwarzenegger recently announced a
statewide contest encouraging students to be
physically active 30-60 minutes a day for at least
three days a week for four weeks.
Schools in 11 regions across the state with the
highest percentage of students completing the
Governor’s Challenge will be rewarded with $1,000
ENCOURAGING HEALTH AND WELLNESS FOR
CALIFORNIANS: LEAGUE RESOLUTION
to purchase physical activity equipment. The
school that wins the grand prize will receive a
brand new fitness center.
GOODS MOVE. PLAN from page 1
???????????? ????????????
GMAP outlines a comprehensive strategy to
address the economic and environmental issues
associated with moving goods via the state’s
highways, railways, and ports. It addresses the
various layers of the goods movement system,
focusing on California’s four key transportation
corridors – Bay Area, Los Angeles/Inland Empire,
San Diego border region and the San Joaquin
Valley.
To view GMAP, visit www.arb.ca.gov/gmp/
gmp.htm.
? ? ?????????????????????
COMMITTEES from page 1
City officials are encouraged to review the
rosters and familiarize themselves with the
officials serving on the committees. Both the
Assembly and Senate Standing Committee
rosters can be found on the League of California
Cities Web site, at www.cacities.org/
legresources.
Only Western City magazine brings you
practical ideas and information you need to
know about local government in California.
Western City magazine presents big-picture
policy issues and trends in a format suited
for busy professionals, with concise feature
articles and in-depth series that explore
statewide issues. Stay informed about city
issues across California. Subscribe today.
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Western City magazine.
Subscribe Today!PRIORITY FOCUS - PAGE 5 Visit the League’s Official Website--www.cacities.org
February 2, 2007 - Issue #5
To help answer those questions, the League
has provided a breakdown of the funds that will
impact city budgets - specifically, Prop. 42 from
2002, and Propositions 1A and 1B from 2006.
Proposition 42
Prop. 42 dedicates a portion of the sales tax
on gasoline to transportation purposes, including
the State Transportation Improvement Program
(STIP), public transit, designated traffic congestion
relief projects and city streets and county
roads. Prop. 42 was suspended for fiscal years
2003-04 and 2004-05, meaning the funds it gener-
ated did not flow to transportation programs, but
were borrowed by the state.
In 2005-06 and 2006-07, Prop. 42 was fully
funded. Additionally, Gov. Schwarzenegger has
proposed full funding of Prop. 42 in his 2007-08
state budget proposal.
It is important to note that while the Governor
has proposed to fully fund Prop. 42 in his January
budget proposal, cities and counties will not
receive any of these funds for local streets and
roads in FY 2007-08. FY 2007-08 is the second of
two Prop. 42 “gap” years for local agencies -
years where cities and counties are scheduled to
receive no funding under the original Prop. 42
funding formula (found in Revenue & Taxation
Code 7104).
This was part of the trade-off in 2002, where
local agencies received funding in FY 2000-01,
while transportation programs did not. Last year
was the first “gap” year, however, cities did receive
Prop. 42 repayment funds in August 2006 for
monies borrowed by the state in fiscal years 2003-
04 and 2004-05.
Looking ahead, in FY 2008-09, cities and
counties will again receive Prop. 42 funds if
appropriated in the state budget (according to the
original Prop. 42 funding formula) at higher levels
than earlier years. Specifically, cities are currently
scheduled to receive an estimated $314 million in
FY 2008-09 (over $9 per capita). City by city
estimates are available at
www.californiacityfinance.com, under the “Trans-
portation” section.
Proposition 1A
Prop. 1A was passed in November 2006 as a
constitutional amendment to protect Prop. 42
revenues from being “borrowed” by the state.
Prop. 1A does not prevent the state from borrow-
ing these funds entirely, but it does put restrictions
on when and how often the funds can be bor-
rowed and must be paid back. Specifically, Prop.
1A includes the following:
• The Governor must declare that the state
faces a severe fiscal hardship, and the Legislature
must enact a statute authorizing the borrowing by
a two-thirds vote. At the same time, the Legisla-
ture must pass a bill specifying that they will repay
the loan with interest within three years.
• The state can borrow the funds no more
than twice in 10 years, and must repay a prior loan
before borrowing a subsequent time. Additionally,
the state cannot borrow funds in two consecutive
years.
• Any Prop. 42 transportation funds that
were borrowed by the state but not repaid as of
July 1, 2007, must be repaid within a 10 year
period (no later than June 30, 2016) with a pay-
ment of no less than one-tenth per year of the total
amount owed. (All of these funds were repaid in
August 2006, however, this does not currently
apply to cities and counties.)
Proposition 1B
Prop.1B was also passed in November 2006
and contains almost $20 billion for various trans-
portation projects in California. Of this amount,
cities and counties will each receive $1 billion for
local street and road improvement projects, of
which each city is guaranteed a minimum of
$400,000. (City by city allocation estimates are
available at www.californiacityfinance.com, in the
“Transportation” section, under “Prop. 1B.”)
Continued on Page 6
FUNDING from page 1 ??????????????? ????????????????????????????????Visit the League’s Official Website--www.cacities.org PAGE 6 - PRIORITY FOCUS
February 2, 2007 - Issue #5
State Treasurer’s Office to develop a process to
meet these requests.
While it is uncertain when and how Prop. 1B
funds will be allocated, the League is advocating
that the $1 billion for cities go out expeditiously,
with a significant portion going to cities in the 2007-
08 Prop 42 “gap” year, and that the entire amount
be allocated on a predictable timeline. Allocating
Prop. 1B funds sooner rather than later will put
them to use immediately, fill the Prop. 42 “gap”
year, and prevent a lost year of construction for all
of California’s 478 cities.
Updated information on all the transportation
programs included in Prop. 1B is available at
www.cacities.org/infrastructure.
Please contact League Legislative Representa-
tive Liisa Lawson Stark if you have any questions
at lstark@cacities.org or (916) 658-8249.
Prop. 1B requires implementation by the
Legislature and will be a significant area of focus
this year. In particular, the $1 billion each for
cities and counties must be appropriated by the
Legislature and it is likely that accountability
guidelines for this program will be drafted to guide
cities and counties in the expenditure of the bond
funds.
Governor’s Budget Proposal
In the Governor’s proposed budget for fiscal
year 2007-08, $2.79 billion of Prop. 1B funds are
proposed for appropriation, including $600 million
for cities and counties for local streets and roads.
This would mean $300 million for cities and $300
million for counties in the last “gap year” from
Prop. 42 revenues.
In FY 2008-09, another $2.39 billion is pro-
posed for appropriation, including $300 million for
cities and counties for local streets and roads,
which would mean $150 million for cities and
$150 million for counties. In FY 2009-10, $2.61
billion more is proposed for appropriation, includ-
ing $150 million for cities and counties for local
streets and roads, which would again be shared
equally.
It is the League’s understanding that the
Administration intends to appropriate $150 million
annually each year thereafter to reach the total of
$2 billion slated for cities and counties from Prop.
1B.
The League has held meetings with key
stakeholders to discuss how to distribute the
bonds. Numerous questions have been pre-
sented regarding project eligibility and readiness,
timing for release of the funds and accountability.
The League continues to work with the Legis-
lature, the Administration, the California Depart-
ment of Transportation (Caltrans), the California
Transportation Commission, the Department of
Finance, the State Controller’s Office, and the
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FUNDING from page 5
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