IN THIS ISSUE: May 11, 2007
Issue #18-2007
Page 4: Diversity Caucuses Hosting Pre-Legislative Action Days Events
Page 5: How Will Your City Celebrate Healthy Communities Awareness Month?
Federal Update: Bills Continuing to Move in the 110th Congress
Page 8: Kansas Municipal League Establishes Fund to Help Rebuild Greensburg
Page 9: UCTV Now Available for PEG Channels
CalTRUST Program Celebrates Two Years with $400 Million in Investments
Keeping Up: Lorraine Okabe Celebrates 30 Years at the League
Page 10: New Study Available on Local Sales Tax Elections
Sustainable Communities Grant & Loan Program Now Accepting Applications
City Officials Invited to Voice Opinions on School Siting Decisions
Page 11: May Issue of Focus on Housing Released; Find a Bill, Legislators, Leg Committee – or Ask League Leg Staff
LEGISLATIVE ACTION DAYS HITS SACRAMENTO NEXT WEEK
The League of California Cities’ annual Legislative Action Days are set for next week at the
Sheraton Grand Sacramento Hotel. A two-day event, activities will be held on May 16-17, giving
your city an opportunity to learn the latest on League priority issues and to meet with legislators.
For more, see Page 2.
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LEAGUE MOVES TO A NEUTRAL POSITION ON SB 964 (ROMERO)
The League of California Cities is now neutral on SB 964 (Romero), after originally opposing the
measure. The bill’s initial language severely limited communication between city staff and city
councils outside of an open and public meeting. For more, see Page 3.
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GOVERNOR’S MAY REVISE SET FOR RELEASE ON MAY 14
Gov. Arnold Schwarzenegger’s annual May Revision budget plan (May Revise) for Fiscal Year
2007-08 will be available on Monday, May 14. The revision is noteworthy for cities because
adjusted funding for a number of key programs in the areas of transportation, public safety and
flood control will be unveiled. For more, see Page 4.
2
‘Legislative Action Days’ Continued from Page 1…
Infrastructure and housing are two of the key issues the League is focused on this year. During
your lobbying activities, keep in mind the following messages.
Housing
• Housing is Important for Every Californian. It’s critical that all families have a good
home. It makes our communities safer, provides a better business climate and guarantees a
better quality of life for all Californians.
• Time to Embrace the Idea of Incentives. It is time to consider permanent incentives for
building affordable housing. Housing legislation in recent years has focused on greater
planning requirements for cities. But it takes more than planning. Particularly for affordable
housing, it takes resources to create the incentives for the market to act. Prop. 1C is a good
start, but the needs are much greater.
• Integrated Local Planning. It is okay to make housing a priority, but don’t take away the
ability to make a community. Local agencies are responsible for integrating a number of
things within the general plan. In addition to housing, cities must consider flood dangers, fire
and seismic hazards, economic development, farmland and habitat protection, air quality, and
countless other factors that reflect local concerns and traditions. Local governments need
flexibility to properly balance these competing needs.
Infrastructure – Prop. 1B: The Infrastructure Bond
• Support SB 286. Predictable funding is essential to ensure that cities can move
forward on vital local projects.
• Cities must have timely access to local street and road bond funds. This provides
critical funding in the 2007-2008 fiscal year when Prop. 42 money is not available to
cities. Cities can put this money to use immediately for traffic congestion relief, transit,
traffic safety, storm damage, maintenance, construction and other projects to improve the
local transportation system. In contrast, many other programs in Prop. 1B are not ready
to commence construction for several years.
• Ensure consistency with provisions of Prop. 1B and the will of the voters without
attaching additional criteria, conditions or sanctions to access bond funds. As
outlined in Prop. 1B, cities should receive local street and road funds as a direct
allocation from the State Controller’s Office. Cities should not be required to go through
the California Transportation Commission process to access funds. This will result in
significant project delays and is contrary to voter intent.
Infrastructure – Prop. 1C: The Housing Bond
• These funds should focus on the critical needs of local governments to improve and
expand “table setting” infrastructure. Examples of this include upgrading and expanding
outdated or undersized sewer water and storm drain systems, expanding downtown parking and
street capacity and addressing brownfields problems. This will lead to greater opportunities for
infill housing development.
• The application process for the bonds should not eliminate or reduce the ability of small
cities to compete for available funds. This is an excellent opportunity to reinforce compact land
development patterns, revitalizing urban cores, transit-oriented development and the preservation
of open space and farmlands.
• Keep the intent of the voters, with necessary oversight and accountability. Funds
should be allocated in a cost-efficient manner to maximize public investments, through 3
streamlined application processes. The allocation of bond funds should not be an
opportunity to attach additional sanctions, conditions and criteria that go beyond the
concepts approved by the voters. Provide incentives, not mandates.
Infrastructure – Prop. 84: The Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006
• The allocation of park funds should remain true to the language in Prop. 84. The
language specifies a preference for these funds to go to “underserved communities.”
This enables communities that are underserved by parks, to compete for these funds,
with a focus on the critical needs of local governments to improve and expand their parks
and sustainability, including park creation in neighborhoods where no parks currently
exist.
• Establish allocation schedules and criteria for the release of funds to enable local
governments to plan effectively.
Leg Action Days Speakers
Confirmed general session speakers include:
• Sen. Alex Padilla (former League President), who will discuss SCR 31 and Healthy
Communities Awareness Month
• Sens. Alan Lowenthal and Bob Dutton, who will speak on SB 286 and infrastructure
issues
• Assembly Member Anna Caballero, chair, Assembly Local Government Committee
• Assembly Member John Laird, chair, Assembly Budget Committee
• Sen. Dick Ackerman, Senate Republican Leader
• Assembly Member Roger Niello, vice chair, Assembly Budget Committee
Also invited to speak at the Thursday morning session are Chris Kahn, deputy chief of staff and
legislative secretary, Governor’s Office; and Housing Secretary Dale Bonner. Kyra Ross, the
League’s legislative representative on environmental issues, will also give an update on climate
change issues.
In addition, Sen. Christine Kehoe and Assembly Member Dave Jones will be honored with a
special presentation.
For more information on Legislative Action Days and a tentative schedule of events, visit
www.cacities.org/events.
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‘SB 964’ Continued from Page 1…
The change in position is a result of amendments that made SB 964’s language clearer and
specific in scope. The changes are a significant improvement for cities. Specifically, the
League’s amendments ensure that all city staff can continue to properly communicate with their
governing body to clarify, understand or define an item that will come before the city council, as
long as:
• Those meetings do not come to a concurrence on an issue; nor do they
• Take action on an item that is to be discussed during a public agendized meeting
This was an all-out collaborative effort on the part of the League. A number of city officials
stepped up with a quick response on this bill, as did the League’s regional public affairs
managers, who made this item a priority.
Special thanks go to League General Counsel Patrick Whitnell and the League’s sub-committee
on this issue, who assisted League staff with amendments, testimony and work with the
sponsors. Those committee members included city attorneys Mike Jenkins, Harvey Levine,
Laura Kuhn and Debra Corbett. 4
SB 964 was heard in two separate committees this week. On May 8, it was heard in the Senate
Judiciary Committee, where League staff testified (as one of the original opponents of the bill)
that we were satisfied with the changes and that we were grateful to tSen. Romero and her staff
for their diligent work to reach a consensus.
This effort was repeated the next day in the committee of origin, the Senate Local Government
Committee. The bill moves next to the Senate floor for a vote and then presumably onto the
Assembly.
The League will continue to keep the membership updated on SB 964 as developments occur.
____________________________________________________________________________
‘May Revise’ Continued from Page 1…
The initial January 2007-08 budget proposal featured continued funding for vital public safety
programs and the proposed rollout of $13.7 billion in infrastructure bond funds from the 2006
voter-approved approximately $44 billion infrastructure bond package.
The May Revise will start the next round of negotiations between the Senate, Assembly and the
Governor. For additional information on the January budget proposal, visit
www.cacities.org/revandtax and click on “State Budget Positive for California Cities.”
League staff will be analyzing the May Revise next week. An article covering the budget issues
of importance to local governments will appear in the May 18 edition of Priority Focus.
The League will attempt to provide a brief initial summary on the May Revise on the League Web
site (www.cacities.org) the afternoon of May 14.
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Diversity Caucuses Hosting Pre-Legislative Action Days Events
The League of California Cities’ Latino and African American Caucuses are holding separate
events prior to the start of Legislative Action Days on Wednesday, May 16. The Latino Caucus
will be hosting a forum on civic engagement, while California Assembly Majority Leader Karen
Bass will lead a discussion on “The State of Black California” for the African American Caucus.
The Latino Caucus event is scheduled May 16 from 9 a.m. to noon. Experts will present
information on how to utilize data to identify voter turn out, prepare micro-level political analysis
and determine how California’s growing diversity impacts elections across the state and in local
districts.
Engaging the Latino community on political issues continues to be a key priority. There are 2.5
million Latino registered voters in California and 500,000 more Latinos voted in 2006 than in
2000. Projections are that potentially two million more Latino adults are eligible to become
citizens in California and vote in the 2008 elections.
Guest speakers at the Latino Caucus event include:
• Sen. Gil Cedillo
• Sen. Alex Padilla
• Assembly Member Anna Caballero
Participants will come away with a new understanding of how ongoing and potential demographic
shifts impact the political future of local jurisdictions. This session will explore these and additional
strategies to best capitalize on them.
A continental breakfast will be served at this event. Registration is available on a first-come, first-
serve basis by calling (916) 669-1343.
5
League African American Caucus to Host Inaugural Breakfast
The League of California Cities African American Caucus is hosting its inaugural legislative
breakfast during the League’s Legislative Action Days on Wednesday, May 16.
California Assembly Majority Leader Karen Bass will discuss “The State of Black California,” a
report that was commissioned by the Legislature. The goal of the report was to develop a public
policy agenda for the California Legislative Black Caucus, local elected and appointed officials.
The breakfast will be held at the Sheraton Grand Hotel in Sacramento, from 8 a.m. to 9:45 a.m.
Attendance is free and breakfast will be provided. If you are interested in attending, please RSVP
with Yvette Harris at (916) 658-8253 to reserve a seat.
For more information on the League’s African American Caucus, visit www.cacities.org/caucus1.
Membership forms are available from League Legislative Representative P. Anthony Thomas.
Thomas can be reached at (916) 658-8279 or athomas@cacities.org.
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How Will Your City Celebrate Healthy Communities Awareness Month?
The League of California Cities and the Cities, Counties, Schools
(CCS) Partnership is sponsoring SCR 31 (Padilla), a resolution that
recognizes the importance of health and wellness in communities
and declares May as “Healthy Communities Awareness Month.”
On Monday, May 7, the resolution passed off the Assembly Floor
with 73 co-sponsors and returns to the Senate Floor for concurrence
next week. Sen. Alex Padilla will discuss the resolution on
Wednesday, May 16, during Legislative Action Days and the
Legislative Reception that evening recognizes the many ways
California cities promote healthy communities.
For more information on the reception, see “Legislative Action Days Hits Sacramento Next
Week.”
The League is requesting that cities take this opportunity to adopt their own resolution declaring
May as “Healthy Communities Awareness Month.” A sample resolution is located at
www.cacities.org/healthyresolution. Additionally, for those cities that are coming to Legislative
Action Days, come prepared to tell your story of why healthy communities matter.
Please send in your stories of how you celebrate “Healthy Communities Awareness Month” to
Genevieve Morelos at gmorelos@cacities.org. Too often, the good work that cities do is
forgotten. Take this opportunity to celebrate and share with others the work you are doing.
_____________________________________________________________________________
Federal Update: Bills Continuing to Move in the 110th Congress
As the legislative session continues in Sacramento, a number of federal issues have begun to
take shape during the 110th Congress in Washington, D.C.
Below is an update on environmental, housing, public safety, telecommunications related
legislation as well as other bills the League is tracking in both the U.S. Senate and House of
Representatives.
Energy and Environment Block Grants
Earlier this week, the League sent a letter to California members on the House and Energy and
Commerce Committee urging co-sponsorship of Rep. Albert Wynn’s (D-Md.) Energy and
Environment Block Grant Act of 2007. This legislation is based on the U.S. Conference of 6
Mayor’s (USCM) priority recommendation in the USCM 10 Point Plan: Strong Cities, Strong
Families for a Strong America.
The text of the bill has not been released but the goal of the League’s letter is to build support for
the bill so that it is considered next week in the Energy and Air Quality subcommittee. There are
several environment and energy efficiency bills coming together in the House and only those with
significant support will receive consideration in the subcommittee.
In the Senate, the League is supporting S. 1115 (Bingaman), the Energy Efficiency Promotion Act
of 2007. This bill is a comprehensive measure enacting and expanding numerous federal energy
efficiency, fuel efficiency programs and standards, including the promotion of biofuels and carbon
research.
S. 1115 would create a City/County/State Energy Block Grant to provide cities with a population
of greater than 35,000 or counties with a population of 200,000 or more, with formula funding
from the grant on an annual basis.
Approximately 70 percent of all formula funding would be allocated directly by the Secretary of
Energy to these cities and counties. The remaining 30 percent would be allocated to the states,
which would be required to pass at least 40 percent of this funding to communities that do not
receive funds directly under the program.
The League supports this bill based upon its existing federal priorities. Those priorities include
support of the creation of block grants, developing and implementing community and
transportation energy conservation programs, and the promotion and development of alternative
and renewable energy sources.
S. 1115 passed out of the Senate Committee on Energy and Natural Resources and is expected
to go to the Senate floor by the Memorial Day Recess (May 25).
Housing
The League is supporting H.R. 1427 (Frank), the Federal Housing Finance Reform Act of 2007.
This measure would overhaul the regulatory oversight of the government-sponsored enterprises
(GSE) of Fannie Mae, Freddie Mac and the Federal Home Loans Bank. It creates a new,
independent regulator with broad powers analogous to current banking regulators.
In addition, H.R. 1427 creates a five-year affordable housing fund (based upon a 1.2 basis point
levy against each dollar in the average total mortgage portfolio), which will dedicate an estimated
$400 million per year for the construction, maintenance and preservation of affordable housing.
The first year of funding will be dedicated to the hurricane stricken areas of the Gulf Coast. In the
following four years, the funds will be distributed by a formula among the states.
The formula is weighted on population, housing costs, percentages of low income households
and other factors that should favor California. The funds will be dispersed through state housing
agencies and may be used for affordable rental housing, homeownership, and some
infrastructure. The League’s federal policies support the establishment of new programs for
funding affordable housing.
The League is also supporting H.R. 1850 (Velazquez), the Housing America’s Workforce Act.
The measure would amend the Internal Revenue Code to allow employers a business tax credit
for up to 50 percent of the qualified housing expenses paid for the benefit of their employees.
The bill defines "qualified housing expenses" to include homeownership assistance and rental
assistance. It limits the amount of such credit to the lesser of $10,000 or six percent of an
employee's home purchase price, or up to $2,000 for rental assistance and excludes the value of
employer-paid housing assistance from employee gross income.
H.R. 1850 also authorizes the Secretary of Housing and Urban Development to award grants in
FY 2008-10, on a competitive basis, to nonprofit housing organizations or local governments for 7
certain costs, including operating and technical assistance costs, of employer-assisted housing
programs.
Since state and local governments do not pay taxes, this bill appears to allow a city to assist an
employee with housing and then assign (presumably sell) the value of that assistance to a private
entity which can use it as a tax credit against their taxes.
The League is working with Rep. Velazquez’s office to clarify whether this is how the language is
intended to work for public employers. H.R. 1850 has been double-referred to both the House
Ways and Means Committee and to the House Financial Services Committee.
Community Development Block Grants
Last month, Sens. Patrick Leahy (D-Vt.) and Norm Coleman (R-Minn.) sent a letter to the Senate
Budget committee to increase funding for the Community Development Block Grant (CDBG)
program to $4.1 billion. Sen. Boxer signed onto the letter of support, while Sen. Feinstein sent in
her own letter of support since she sits on the Senate Appropriations Committee.
The League is closely monitoring the CDBG funding program and will request that cities send in
letters of support to the House and Senate Transportation, Housing and Urban Development
Appropriation subcommittee, when the measure is taken up. At this time, neither committee has
released a schedule to indicate just when they will mark up their FY 2008 measures.
Further information on this issue will be provided as it becomes available in future issues of
Priority Focus.
Public Safety
Sen. Feinstein has introduced S. 456, the Gang Abatement and Prevention Act of 2007. This
measure and its companion bill in the House, H.R. 1582 (Schiff and Bono) will establish new
crimes and tougher federal penalties to deter and punish members of illegal street gangs
engaged in violent crimes that affect interstate and foreign commerce.
S. 456 also provides more than $1 billion in funding for gang enforcement, prevention and
intervention programs over five years. Unlike previous versions, this legislation has no juvenile
transfer provisions, no mandatory minimums, and no death penalties.
These bills also will create and provide assistance for High Intensity Interstate Gang Activity
Areas (HIIGAA). S. 456 and H.R. 1582 will require the Attorney General to designate certain
locations as HIIGAAs and provide assistance in the form of criminal street gang enforcement
teams made up of local, state and federal law enforcement authorities to investigate and
prosecute criminal street gangs in each high intensity interstate gang activity area.
The League supports these measures based upon its existing policy to support stiffer penalties
for violent offenders and support for additional funding for local agencies to recoup the costs of
crime and increase community safety. The League is working with its federal lobbyist to
determine how the Attorney General will designate a site as a HIIGAA, with the goal of
maximizing the potential availability of this tool for California cities.
The House will consider H.R. 1700 (Weiner D-N.Y.) the Community Oriented Policing Services
(COPS) Improvements Act of 2007 next week. H.R. 1700 would authorize increased funding
levels for the Community Oriented Policing Services (COPS) program to $1.15 billion annually for
five years, beginning in FY 2008.
In addition to direct grants to hire additional police officers, the bill calls for local efforts to combat
gangs, drug trafficking and other criminal activities in elementary and secondary schools, to
defray local police costs incurred in performing anti-terrorist or homeland security missions and to
crack down on methamphetamine manufacturing and distribution.
The bill also encourages state and local police agencies to hire former military members for some
of the new law enforcement jobs. The companion bill in the Senate is S. 368 (Biden). 8
Telecommunications
There are a few pieces of telecommunications legislation that have been introduced in the 110th
Congress. The first is S. 156 (Wyden, D-Ore.) which proposes to make the moratorium on
Internet access taxes and multiple and discriminatory taxes on electronic commerce permanent.
The bill has been referred to the Senate Commerce Committee, although at press time of this
issue of Priority Focus, no action had been taken on it. The League traditionally has opposed
legislation such as this and will do so again if this measure appears likely to move.
The League has also heard that Congressman John Conyers (D-Mich.), chair of the House
Judiciary Committee, plans to introduce additional legislation on Internet Tax Freedom in mid-
May that would temporarily extend the Internet Moratorium for three more years. Hearings on his
proposal are expected the last week of May.
The only legislation that will likely move in the area of telecommunications will be measures
affecting the Internet Moratorium. The League does not expect S. 170 (Ensign) or S. 140
(Schumer) (bills that propose to repeal the excise tax on telephone or other communications
services) to move. The League will continue to monitor all legislation in this area and will send
out more information as it becomes available.
To view and print out any bills included in this update visit www.congress.gov. If you have any
questions contact League Legislative Analyst Genevieve Morelos at gmorelos@cacities.org.
_____________________________________________________________________________
Kansas Municipal League Establishes Fund to Help Rebuild Greensburg
An EF-5-rated tornado swept the Midwest last weekend, destroying homes, businesses and
disrupting families. The city of Greensburg, Kan., was one of the hardest hit municipalities. The
tornado reduced all government buildings (including the power plant), all schools and the hospital
to rubble.
“Greensburg is the kind of town you are proud to call home and where everyone helps their
neighbors,” said League of California Cities Executive Director Chris McKenzie, a former resident
of Kansas. “This is a devastating loss for them.”
Cities throughout Kansas and those across the United States have expressed interest in
providing financial assistance to the city government of Greensburg. To further that cause, the
League of Kansas Municipalities (LKM) has set up the Greensburg Fund to provide assistance.
To help the city recover from this natural disaster, checks should be made to the "Greensburg
Fund" and should be mailed to the following address:
League of Kansas Municipalities
Attn: Greensburg Fund
300 SW 8th Ave.
Topeka, KS 66603
All donations will be distributed directly to the city government of the City of Greensburg, to be
used in any manner that the city determines is appropriate. For questions about this fund,
contact LKM at (785) 354-9565.
A number of photos depicting the damage are available at this location:
www.kansas.com/static/slides/050507tornadoaerials/.
Note: California city officials are urged to consult with your city attorney to ensure any
assistance you provide does not violate the gift of public funds prohibition or any local
spending restrictions your city may have adopted.
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9
UCTV Now Available for PEG Channels
University of California Television (UCTV), a 24-hour, non-commercial channel that broadcasts
educational and enrichment programming, is now available for retransmission on cities’ Public,
Education, or Government (PEG) Channels.
The satellite service provider has agreed to allow non-commercial cable channels to retransmit
UCTV’s signal. PEG channels that were unable to install the previously required C-Band satellite
downlink equipment can now use this more affordable option to integrate UCTV's free-to-air
educational programming.
UCTV’s content can be added into existing programming schedules or used to fully program any
as-yet-unactivated PEG channels. The League worked with representatives from UCTV during
the AB 2987 negotiations last year. Cities may benefit from seeing what UCTV has to offer
because it has a selection of programming that nicely meshes with the core PEG channel content
of local educational and government information.
For more information, visit www.uctv.tv/downlink or contact UCTV Communications Manager
Alison Gang at (858) 822-5060 or agang@ucsd.edu.
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CalTRUST Program Celebrates Two Years with $400 Million in Investments
As CalTRUST celebrates its second anniversary, the public agency investment program has
another reason to rejoice - its portfolio has topped $400 million in investments. Since its inception
in February 2005, the program has constantly delivered real value to participants by pooling and
investing local agency funds.
Currently, seven cities, 12 counties and 10 special districts and other entities—including the
League of California Cities—participate in CalTRUST. Cities invested in CalTRUST include
Chino, the Chino Redevelopment Agency, National City, Oakley, Pinole, the Pinole
Redevelopment Agency, Poway, Richmond and Riverside.
Both the CalTRUST short- and medium-term accounts have outperformed their benchmark
agencies during this period, translating into significant dollars for participating local agencies.
Congratulations to CalTRUST for a highly successful two years.
Investments in CalTRUST are authorized in Government Code §53601. CalTRUST provides a
perfect complement to the Local Agency Investment Fund (LAIF) and is a great way to diversify
investments. Participation by cities is easy and does not require joining the joint powers
authority. CalTRUST was created by and is directed by local government officials who administer
investments on behalf of their agencies.
For more information about CalTRUST, visit www.caltrust.org or contact Dan Harrison at
dharrison@cacities.org or (916) 658-8267.
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Keeping Up: Lorraine Okabe Celebrates 30 Years at the League
A lot has changed at the League in the past 30 years. Directors have retired and policies have
evolved, but fortunately for staff members and city officials in need of information, Lorraine Okabe
has been a constant.
Lorraine celebrated her 30th anniversary at the League earlier this month, having established the
library services department and overseeing its development and expansion over three decades.
“Thirty years with one organization is a rarity these days, and we’re proud and thankful that
Lorraine has been a part of the League family for that time,” said League Executive Director Chris
McKenzie. “Her leadership of the League library has been a key asset in the League’s long-term
success.” 10
Before Lorraine came onboard in 1977, library materials were disorganized and scarce. City
officials needing League materials would work with whatever was available at the office. All that
changed once Lorraine arrived. She built the present library from a small collection of materials
piled on a table at the League’s old office located at 1108 O Street.
As the years passed, the League library expanded tenfold, becoming an invaluable municipal
resource to city officials all over California. The library collection has become so extensive that
Lorraine is currently overseeing the transfer of the League’s print-based archives into a digital
format, complete with the existing library catalogue on the Internet.
The League thanks and congratulates Lorraine on her 30 years of service to the cities of
California!
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New Study Available on Local Sales Tax Elections
The League has just released a study focused on a series of local sales tax measures voted on
across San Luis Obispo County in November 2006. Produced as part of the City Ballot Measure
Academy, this report outlines the preliminary polling numbers for each measure and examines
the tactics employed in each jurisdiction leading up to Election Day.
The report is located at www.cacities.org/cbma. Additional copies are available free of charge by
contacting Robb Korinke at rkorinke@cacities.org. Questions and comments may also be
directed to Robb at (916) 658-8258.
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Sustainable Communities Grant & Loan Program Now Accepting Applications
The California Pollution Control Financing Authority (CPCFA), chaired by State Treasurer Bill
Lockyer, has announced another round of funding for the Sustainable Communities Grant & Loan
Program. Approximately $2.5 million of funding is available in this round.
The program assists cities and counties in developing and implementing sustainable
development growth policies, programs and projects. The application deadline for the current
round is July 16.
For more information and the application instructions, visit
www.treasurer.ca.gov/CPCFA/cpcfa.htm.
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City Officials Invited to Voice Opinions on School Siting Decisions
The California Center for Physical Activity and the Cities Counties Schools (CCS) Partnership are
collaborating on a survey to better understand the process by which school siting decisions are
made in California communities. City input is vital to this survey because cities are decision
makers on land use and are impacted by school placement decisions.
The survey will determine the most important issues and most helpful procedures for
communities that are making decisions about sites for new school construction or about extensive
remodeling or re-use of older sites. The outcome will be used to create a guide that should help
make the decision making process to identify school sites increasingly productive and efficient for
California communities.
The survey is anonymous and takes approximately 10 minutes to complete. To take part, visit
www.surveywriter.net/in/survey/survey1119/cloc1.asp.
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11
May Issue of Focus on Housing Released
The May issue of Focus on Housing, the League of California Cities’ electronic monthly housing
newsletter, published earlier this week. This month’s feature is a Q&A with Assembly Member
Mark DeSaulnier on housing and land use issues.
In addition, the issue contains a roundup of the past month’s housing news from across the state,
successful affordable redevelopment stories, and much more! To read the issue, visit
www.imakenews.com/focusonhousing.
Does Your City Have a Story to Tell?
Has your city redeveloped a blighted or underused site with new affordable housing in the past
two years? If so, we want to know about it. Typical housing success stories published in Focus
on Housing range between 250-400 words, and include “before and after” photos to illustrate the
property’s change.
For an example of one of the newsletter’s success stories, visit
www.imakenews.com/focusonhousing and read “Las Brisas Helps Revitalize South Los Angeles.”
Questions and submissions should be sent to League Communications Specialist Brian Heaton
at bheaton@cacities.org.
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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.
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IN THIS ISSUE: May 18, 2007
Issue #19-2007
Page 6: Pension Obligation Bond Program Could Save Over $110 Million for Local Governments
Page 7: Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
LEAGUE FOCUSES ON INFRASTRUCTURE AND OTHER STRATEGIC
GOALS AT LEGISLATIVE ACTION DAYS
The League of California Cities’ Legislative Action Days took place on May 16-17 in Sacramento.
More than 450 representatives from California cities attended the two-day event, which featured
an update on legislative issues and time for lobbying at the State Capitol.
For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
GOVERNOR’S MAY BUDGET REVISION CONTINUES TO
SUPPORT CITY PROGRAMS
On Monday, May 14, Gov. Arnold Schwarzenegger released his proposed May revision to the
2007-2008 state budget. The May Revise is positive for cities, with the budget funding a number
of critical programs. For more, see Page 4.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
ASSEMBLY MAJORITY LEADER ADDRESSES THE LEAGUE OF
CALIFORNIA CITIES’ AFRICAN AMERICAN CAUCUS
California State Assembly Majority Leader Karen Bass visited with the League of California Cities’
African American Caucus on May 16, prior to the League’s annual Legislative Action Days event.
Assembly Member Bass met with the caucus to identify how and where local elected and
appointed officials can assist in efforts to resolve problems the African American community faces
statewide. For more, see Page 6.
2
‘Legislative Action Days’ Continued from Page 1…
The legislative briefings occurred at the Sheraton Grand
Sacramento. League President Maria Alegira kicked off Legislative
Action Days by welcoming everyone to Sacramento followed by
Executive Director Chris McKenzie’s update on the organization’s
strategic goals and priorities.
After these introductory remarks, a number of guest speakers from
the Legislature spoke about issues of importance to local
government, including infrastructure, housing and healthy
communities.
Sen. Alex Padilla, the League’s president in 2006, discussed SCR
31, an initiative declaring May as “Healthy Communities
Awareness Month.” The senator emphasized the importance of
healthy living in California.
“What good is a sidewalk, or a park, unless someone is healthy,”
Padilla asked the assembled crowd of city officials.
Infrastructure was the hot topic at Legislative Action Days. Sens. Alan Lowenthal and Bob Dutton
spoke on SB 286, a measure allocating funds for local street and road projects from Prop. 1B.
“We’re going to get this money out the door,” Lowenthal
said, referring to the bond funding in Prop. 1B. “What
we’re pushing for [with SB 286] is at least $1 billion out
right away.”
League President Maria Alegria and Executive Director
Chris McKenzie echoed Sen. Lowenthal, stressing the
importance of upholding the promise made to voters to
put the bond money to work on projects throughout the
state.
McKenzie reminded city officials in attendance to deliver
that message to legislators during their individual meetings.
“Our message today is to have them keep the promise they made to the voters and release the
$1 billion to cities,” he said. “It’s what the voters expect.”
Other members of the Legislature who spoke to the League included:
• Asm. Anna Caballero, chair, Assembly Local Government Committee
• Asm. John Laird, chair, Assembly Budget Committee
• Sen. Dick Ackerman, Senate Republican Leader
• Asm. Roger Niello, vice chair, Assembly Budget Committee
3
Honoring Efforts on Prop. 90
The League made a presentation to Sen.
Christine Kehoe and Asm. Dave Jones,
honoring them for their work on Prop. 90. The
“taxpayer trap” eminent domain measure was
defeated last November.
Specifically, the legislators were recognized for
their help in raising awareness of how
detrimental the measure would be for
Californians and their help in fundraising. They
received special resolutions to commemorate
their efforts.
In the evening, the League hosted its Legislative Reception at the Sheraton. The reception
highlighted what California cities are doing to promote healthy communities through parks,
recreational programs and other means. In addition, Bill Mabie, chief of staff to Sen. Alex Padilla,
made a presentation to acknowledge the 10th anniversary of the Cities, Counties and Schools
(CCS) Partnership to Luan Rivera, chair of the partnership.
Transportation and Environmental Issues Highlight Day Two
The second day of Legislative Action Days, May 17, featured three key speakers – Chris Kahn,
deputy chief of staff and legislative secretary from the Governor’s Office; Dale Bonner, secretary
of the Business, Transportation and Housing Agency and Kyra Ross, the League’s legislative
representative on environmental quality issues.
Kahn spoke to the League’s membership on the Governor’s legislative priorities this year, which
include prison reform, redistricting reform, addressing the gang problem in California
communities, health care reform, and delivering an on-time budget. In addition, Kahn stressed
the Governor’s desire to allocate bond funds quickly to help improve the state’s infrastructure and
transportation issues.
“The Governor is focused on getting the money out,” Kahn said. “The voters have put faith in us
and we have to make good on that.”
Secretary Bonner followed Kahn and spoke extensively on
ways to alleviate traffic congestion throughout the state. The
new head of the state’s Business, Transportation and
Housing Agency discussed many of his main goals for the
agency, which included the following:
• Finding more money to invest in California’s
infrastructure from the private sector
• Making efficient use of existing resources (the
approved infrastructure bonds)
• Consider multi-modal approaches
• Overcoming regional boundaries
• Making the rebuilding process of California irreversible
League Legislative Representative Kyra Ross closed out Legislative Action Days with a
presentation on climate change issues in California. Ross discussed AB 32, which has spurred
the growing emphasis on the topic.
______________________________________________________________________ 4
‘May Revise’ Continued from Page 1…
The following are some issues of importance to local governments:
Transportation
• Proposition 1B Funds. The appropriation of Prop. 1B funds increases from $7.7 billion
to $11.5 billion on a three-year appropriation schedule. This includes $600 million for
Local Streets and Roads in FY2007-08 year ($300 million proposed for FY 08-09 and
$150 million proposed for FY 2009-10 for a total of $1.05 billion in a three-year
appropriation schedule). For more information on Planned Prop. 1B Implementation, visit
www.ebudget.ca.gov, and see page 26 of the Budget Revision.
• Spillover from Sales Tax on Gasoline. The May Revision increases take-away from the
Public Transportation Account (PTA) by $200 million, for a total of $1.3 billion. This
amount is proposed to offset General Fund (GF) expenditures for K-12 home-to-school
transportation, debt service on transportation-related General Obligation (GO) bonds and
transportation services for regional development centers.
PTA spillover revenues occur when growth in revenues from the sales tax on gasoline
exceed the growth sales tax revenues from other taxable goods. (Understanding the PTA
account can be difficult. For an explanation, visit www.californiacityfinance.com, and
access the “Spillover FAQ.”)
Proposition 42: The May Revision contains no changes to the Prop. 42 allocations reported in
January, which fully funds Prop. 42 as follows:
• $684 million to the Transportation Congestion Relief Program (TCRP)
• $699 million to the State Transportation Improvement Program (STIP)
• $175 million to Public Transportation Account (PTA)
Cities and counties will not receive any local streets and roads maintenance funds from Prop. 42
in FY 2007-08 pursuant to a formula in current law and under a longstanding agreement that
provided cities and counties with local streets and roads funds in FY 2001-02 and FYI 2002-03.
However, per the existing formula, cities and counties will receive approximately double their prior
allocations beginning in FY 2008-09.
Public Safety
COPS / Juvenile Justice Grants. The Governor’s May Revise proposes to continue the critical
Citizens' Option for Public Safety (COPS)/Juvenile Justice Grants Program. The budget funds
this program at $238 million, the same level as 2006-07.
Booking Fees. In accordance with last year's AB 1805, the budget also includes $35 million for
an alternative to traditional booking fees called "jail access fees." This is the same level of funding
as last year. For an explanation of AB 1805, visit www.californiacityfinance.com and access the
document on “Booking Fees.”
Anti-Gang Efforts. Under the Department of Corrections and Rehabilitation, $8.5 million is
proposed in the budget for the Criminal Intelligence Analysis Unit; $3.3 for Regional Gang Task
Forces, creating three pilot programs in Los Angeles, the Bay Area and the Inland Empire.
In addition, under the Office of Emergency Services, the May Revision proposes using $4.9
million of federal funds to establish four new federal anti-gang grants as part of gang suppression
efforts; $446,000 to support a State Anti-Gang Coordinator position; and $7 million in General
Funds for Local Anti-Gang Programs. The details of these proposals will be released in the next
few weeks. 5
Resources and Environment
Air Quality. The May Revise allocates $111 million from Prop. 1B to fund air quality
improvements along California's main highways and trade corridors (port electrification and diesel
truck retrofits).
Williamson Act. The $40 million Williamson Act local property tax backfill program to counties is
eliminated in the May Revise.
Debt Repayment and Local Government Finances
Economic Recovery Bond Repayment. The May Revise includes a $1.6 billion increase in
Economic Recovery Bonds (ERBs) prepayments, for a total of $3.1 billion prepayment in the
2007 budget. Prop. 57, the Economic Recovery Bond Act, authorized the state to issue ERBs and
established the "triple-flip" mechanism for repayment of those bonds.
Triple-flip uses a quarter-cent of the local sales and use tax for debt service, replacing that money
to cities and counties with additional property tax. The Administration plans to fully repay the
ERBs by August 2009.
Yacht Tax. The "Yacht Tax" loophole, which would result in GF revenue gains of $35 million in
use-tax obligation, is being permanently closed by the May Revise.
Mandate Claims. The budget has no funding for mandate claims for costs incurred by local
governments in FY 2007-08. Payment of these claims would be deferred to FY 2008-09. This is
the same proposal as released in the Governor's January 2007 Budget.
Commission on State Mandates Process. The May Revise proposes changing the current
process by which the Commission on State Mandates determines mandates and the
reimbursement guidelines.
The May revise also includes:
• $654,000 for additional support to the Public Employee Post-Employment Benefits
Commission including contracts with an economist, health care experts, actuaries and
other staff and operating resources.
• A $950,000 appropriation and the creation of 10 new positions in the Public Utilities
Commission to be used for implementation of the Video Competition Act, AB 2987
(Nunez/Levine) from 2006.
General Notes on the May Revise
Overall, the May Revise proposes to increase GF spending in FY 2007-08 by $1.5 billion or 1.5
percent above the level of spending in FY 2006-07. Gov. Schwarzenegger said "we got creative"
when putting together the revised budget, which included several new ideas:
• A proposal to sell EdFund - California's student loan guarantee agency -- which would
account for a net one-time increase in state revenues of $980 million.
A proposal to consider selling a long-term license to operate the State Lottery was also in the
May Revise. The Administration believes a competitively bid lease would provide billions of
dollars in additional fiscal benefits to the state's GF. The Governor cited this as a potential source
of revenue to pay off the Economic Recovery.
For a comprehensive nonpartisan summary of the May Revision, visit the Legislative Analyst’s
Office at www.lao.ca.gov.
____________________________________________________________________________ 6
‘African American Caucus’ Continued from Page 1…
Bass delivered a presentation on “The State of
Black California,” a report commissioned by the
State Legislature to develop a public policy
agenda for the California Legislative Black Caucus
and one that local elected and appointed officials
can support.
The report revealed some sobering statistics on
the lack of quality healthcare that African
Americans receive; the breakdown of the number
of African Americans who are homeowners and
the community’s civic participation.
The majority leader also outlined specific
legislation that members of the Legislative Black Caucus have introduced in response to some of
the issues that plague the African American community.
One of the caucus’ agenda goals is to take action on at least one issue affecting the African
American community annually. Examples of these actions could include collaborative efforts on
the issues of health and the re-entry into society from the criminal justice system.
The next meeting of the African American Caucus will be in September during the League’s
annual conference.
To become a member of the League’s African American Caucus, please contact Yvette Harris at
(916) 658-8253. For further information on the caucus and its activities call P. Anthony Thomas at
(916) 658-8279.
___________________________________________________________
Pension Obligation Bond Program Could Save Over $110 Million for Local
Governments
Rising pension costs is an ongoing issue for local governments. The California Communities
Pension Board Program was established to help alleviate the unfunded liability that cities and
counties face. The program is projected to save more than $110 million in future pension costs for
California local governments.
The program offers:
Streamlined Bond Issuance Process
Minimal internal staff requirements
A team of experts to handle the details
The Pension Obligation Bond Program has refinanced $410 million in CalPERS unfunded
liabilities for 21 cities and two counties since 2004. The expected cumulative savings from the
Pension Bond Program is over $110 million, or $68 million on a present value basis (discounted
at the true interest cost for individual transactions).
Cities and counties that have issued POBs through California Communities include:
Auburn Downey Novato Port Hueneme
Baldwin Park Kings County Oroville Riverside
Benicia Marina Pacific Grove San Marino
Butte County Merced Palm Springs Seaside
Claremont Millbrae Paradise Yuba City
Daly City Monterey Park Pinole 7
For more information on the program, contact Terrence Murphy at tmurphy@cacommunities.org
or (925) 933-9229, ext. 223. You can also call toll free at (800) 635-3993, ext. 223. Visit
California Communities online at www.cacommunities.org.
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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.
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