IN THIS ISSUE:
May 22, 2009
Issue #19-2009
Page 4: Plan to Attend Budget Action Day on Wednesday, June 3
Local Voters Say "Yes to Some New Taxes
Page 5: Retention Proceeds Legislation Moving Swiftly
Federal Stimulus Funds Bolster 2009 Summer Youth Employment Programs
Page 6: Registration Open for the 2009 League Annual Conference
State Water Board Annual Stakeholder Meeting Scheduled June 5
Page 7: Department of Energy Webcast on Solar Panel Financing Set for May 27
CitiPAC Fundraising Continues Despite Challenging Economy
Page 8: Coming Soon! Visit the New and Improved WestemCity.com
BUDGET PROCESS MOVES FORWARD
Following the defeat of Propositions 1A-E on Tuesday, the Legislature began in earnest to
hammer out a plan to address the state's monumental $21 billion deficit which the Legislative
Analyst's Office (LAO) now projects is over $24 billion. President pro Tern Darrell Steinberg (D-
Sacramento) and Assembly Speaker Karen Bass (D-Los Angeles) held a joint news conference
on May 19 on the budget and the state's cash flow crisis. The Democratic leaders said that they
intend to resolve the budget before the start of the new fiscal year on July 1 and announced the
Budget Conference Committee's upcoming schedule. For more, see Page 2.
sows*** osowoo*******eadi•se••••••
VOTERS REJECT BORROWING TO BAIL STATE OUT
OF BUDGET MISMANAGEMENT
Defeat of Props. Makes it Clear that Borrowing Local
Government Revenues is an Unacceptable State Budget Solution
Rejecting the budget fixes put forth by state lawmakers in February with the defeat of
Propositions 1A-E Tuesday, voters sent state lawmakers a resounding message: it's time for the
state to deal with its fiscal problems once and for all. The League of California Cities urges the
Legislature to heed the voters' message and focus on fixing its finances without taking local
government revenues so that cities can provide the vital public safety and other services on which
city residents rely day in and day out. Bailing the state out of its lack of fiscal discipline is bad
public policy. For more, see Page 2.
000000•0000011100001110060411 OOOOOOOOOOOOO
CLOSE TO 100 CALIFORNIA CITIES DECLARE STATE
OF SEVERE FISCAL HARDSHIP
Dozens More Expected to Follow
Since May '11, 96 California cities have declared a state of severe fiscal hardship and opposed a
proposal to take local property tax revenues to finance the state budget. Cities are already
struggling to balance their own budgets: enacting drastic cuts including public safety reductions,
employee layoffs, hiring freezes, project delays, program reductions and more.
For more, see Page 3.'Budget' Continued from Page 1...
The Budget Conference Committee is comprised of five legislators from the Assembly and
Senate: Assembly Member Noreen Evans (D-Santa Rosa) is chair. Other appointed members
include: Assembly Member Kevin de Leon (D-Los Angeles), Assembly Member Bob Blumenfield
(D-Woodland Hills), Assembly Member Roger Niello (R-Sacramento), Assembly Member Jim
Nielsen (R-Biggs), Sen. Denise Ducheny (D-San Diego), Sen. Bob Dutton (R-Rancho
Cucamonga), Sen. Mark Leno (D-San Francisco), Sen. Alan Lowenthal (D-Long Beach) and Sen.
Mimi Walters (R-Laguna Hills).
Budget Conference Committee Schedule
May 21, 1:30 p.m.: Overview from the Department of Finance and LAO
May 22, 9 a.m.: Cash management
May 26, 1:30 p.m.: Education/higher education/child care and development, and public comment
May 27, 9 a.m.: Health and human services, and public comment
9-10:30 a.m.: Medi-Cal and Healthy Families program issues
10:30 — 11:30 a.m.: Public health, drug Medi-Cal, Proposition 36, and Emergency Medical
Services Authority
12 — 1:30 p.m.: Developmental services
1:30 .— 3 p.m.: In-home supportive services
3 — 4 p.m.: CalWORKs, SSI/SSP, CFAP/CAPI
4— 5 p.m.: Child welfare services, foster care
May 23, 9:30 a.m.: Public safety/local government and other and public comment
June 1: Conference Committee hearings to review Administration proposals and LAO's critique
as well as review suggestions from the previous week's public testimony.
Opposition to Borrowing Grows
So far, two Republican candidates for governor, Steve Poizner and Tom Campbell have
announced that they are against borrowing to balance the state budget. Senate Republican
Leader Dennis Hollingsworth, State Controller John Chiang and a number of individual legislators
have also come out against borrowing local government revenues for the state's budget.
The Sacramento Bee reported on Thursday, May 21 that the Governor is "abandoning" his plan to
borrow from investment markets to help close the state's deficit. The League has not received
clarity if the repositioning on the borrowing issue also includes the notion of borrowing from local
government. To read the full story, please visit the Sacramento Bee Web site
http://www.sacbee.comitopstoriesistoryil 881810.html.
Take Action
The League is launching Save Your City, an extremely aggressive campaign to protect local
revenue in this chaotic budget environment. Cities are passing resolutions, sending letters,
forming coalitions and making phone calls. It is imperative that city officials work with their League
regional public affairs managers and take action to protect their revenues and attend the
League's Budget Action Day scheduled for June 3 in Sacramento.
'Election' Continued from Page 1...
Tuesday's election results indicate the high level of frustration Californians have with state
government and its inability to make prudent fiscal decisions. The League had supported the
budget propositions because the package contained elements that helped the current budget
shortfall and provided some longer term reform measures to give the state a healthier reserve.
2In particular, the defeat of Prop. IC, the lottery securitization proposal, by such a large margin is
a clear voter mandate to the state that it is absolutely unacceptable for the state to borrow to
meet its budget obligations. Statewide opinion polls consistently show a vast majority of
Californians themselves don't believe borrowing should be used to balance the state's budget
and oppose public safety cuts.
"It is irresponsible to hold city budgets hostage to fund the state budget. Borrowing local funds
just deepens the state's structural deficit and compounds the already serious problems cities
have funding basic community services. Cities are currently losing over $900 million each year
due to prior state raids of city funds—an amount that would pay for a lot of public safety and other
local services. The state should balance its budget with its own revenues—not reach into the
struggling budgets of cities to boost state spending. The local government credit card has
expired," said Chris Mckenzie, League of California Cities executive director.
'Fiscal Hardship' Continued from Page 1...
List of Cities that Have Declared a State of Severe Fiscal Hardship
Albany Dinuba Los Banos Salinas
Arcata Dunsmuir Los Gatos San Bernardino
Arroyo Grande El Monte Loyalton San Jacinto
Atascadero Encinitas Marina San Luis Obispo
Atherton Escondido Marysville San Marcos
Bakersfield Eureka Merced Sand City
Beaumont Folsom Morro Bay Santa Clarita
Bellflower Fort Bragg Mountain View Santa Maria
Biggs Fortuna Novato Santee
Calimesa Fremont Oakdale Seaside
Carlsbad Grover Beach Oceanside Sebastopol
Carson Hanford Orland Solana Beach
Chowchilla Hermosa Beach Palm Springs Sonoma
Chula Vista Highland Palo Alto Sonora
Citrus Heights Hollister Petaluma Stockton
Claremont Imperial Beach Poway Taft
Coachella Indian Wells Rancho Cordova Tehachapi
CoLusa lone Rancho Mirage Torrance
Concord La Mesa Red Bluff Tulare
Corning La Quinta Redding Vallejo
Corona Lathrop Redlands Vista
Coronado Lemon Grove Redondo Beach Watsonville
Del Mar Lodi Riverside Williams
Desert Hot Springs Lomita Sacramento You ntville
3In the coming weeks, dozens more cities are expected to reject the Governor's budget proposal
to raid $2 billion in local property taxes to bail the state out of its fiscal mess and pass similar
resolutions of severe fiscal hardship. They are sending the message that cities cannot afford to
bail the state out of its chronic budget problem.
A sample resolution can be found on the League's Web site.
htv://vvww.cacities.orqiresource files/28002SAMPLERESOLUTIONANDINGASEVEREFISCAL
HARDSHIPMayllodf
Plan to Attend Budget Action Day on Wednesday, June 3
The League is holding a special event in Sacramento on June 3 to bring city officials to lobby their
legislators and administration officials on the implications of the May 19 special election. The
timing of this session is designed to allow many city officials to come in just for the day.
With California's fiscal crisis, budget negotiations and testimonies are going to be extremely
important. The May Revise has set the tone for the coming weeks of budget negotiations and this
is an important time to meet with your legislature to protect local funding. California cities need to
join forces to respond to the May Revise proposals to ensure cities' needs are heard and
f IdeNtOOd u the Capitol. Schedule of Events
10— 11:15 a.m., May Revise Budget Briefing
Citizen Hotel, Metropolitan Terrace, Sacramento, CA
11:15 a.m. — 3:30 p.m., Time for Scheduling Lunch and Lobbying Appointments with
Legislators
Please contact Meghan McKelvey at mmckelveyacacities. orq or (916) 658-8253 if you would like
to attend.
District Budget Meetings
City officials who are unable to make the trip to Sacramento on June 3 are encouraged to contact
their League public affairs manager to schedule a district meeting with their legislator.
Local Voters Say "Yes" to Some New Taxes
In addition to the statewide propositions on the ballot on May 19, there were a dozen local
measures, including eight affecting local taxes. Half of the tax measures passed.
The only school measure on the ballot, Measure D in the Mount Diablo School District (Contra
Costa County) received 59 percent yes votes, but fell short of achieving the two-thirds voter
approval needed for its $99 per parcel tax for schools.
Two communities considered increases in their hotel tax or Transient Occupancy Tax (TOT).
Voters in Palmdale approved an increase in their TOT from 7 percent to 10 percent by a 64
percent yes vote. But voters in Madera County rejected a TOT increase from 9 percent to 11
percent with just 24 percent yes. Both measures needed majority approval.
Voters rejected proposed add-on sales taxes (Transactions and Use Tax) in two cities. Pacifica's
majority vote 1 cent sales tax received 38.3 percent yes. Calexico's half cent sales tax increase
dedicated to police and fire services garnered only 46.9 percent of the vote. It needed two-thirds
approval.
Two of the three local measures concerning local utility user taxes (U UT) passed. In Hayward, 53
percent of voters approved a new 5.5 percent UUT on gas, electricity, video and• II • - - - . •
telecommunications services. Voters in Desert Hot Springs voted 74 percent yes to increase their
UUT from 5 percent to 7 percent and modernized it to include new telecommunications
technologies. A Rancho Cordova proposal to modernize the city's UUT to include cell phones and
other new communication devices failed. It needed a two-thirds approval to pass but only 55
percent of voters approved it.
Voters in Palmdale repealed their local term limits law. Voters in Sacramento County extended
binding arbitration of labor contracts to additional classes of employees.
A full report of these measures as well as others in 2009 may be found at
htipliwww.californiacityfinance.corni#VOTES.
Please contact Michael Coleman for more information at (530) 758-3952 or
coiernanmuni 1 .corn.
Source: County elections offices.
Retention Proceeds Legislation Moving Swiftly
League Opposed to AB 396 and SB 802
AB 396 (Fuentes) and SB 802 (Leno) both contain provisions which would require that contract
2010, between a public entity and an original contractor, between an original contractor and a
subcontractor, and between all subcontractors. This bill removes the authority of public entities to
decide the appropriate amount of retention.
Local agencies must accept the lowest responsible bidder and the flexible retention rate helps to
ensure timely and budget-conscious project completion. Local agencies commonly reduce
retention to 5 percent at the half-way point of project completion, if adequate progress is being
made and the contractor is acting in good faith. However, AB 396 and SB 802 would require local
agencies to limit retention to 5 percent regardless of the progress or good faith of the contractor.
This will protect potential bad actors either unknown or even known to the public agency, placing
public interests and public funds at risk.
The League has had many discussions in recent years regarding similar proposals to limit
retention proceeds to 5 percent (AB 1949: Conroy, 1996, vetoed; AB 940: Miller, 1997, vetoed;
AB 806: Keeley, 1999, vetoed; SB 619: Migden, 2008, held). The League however remains
concerned over these measures because we have yet to see a specific need to limit retention
proceeds to 5 percent, but have instances where 5 percent retention is simply insufficient,
particularly for smaller agencies.
AB 396 is currently on the suspense file in the Assembly Appropriations Committee. SB 802 has
passed out of the Senate, and is expected to next be heard in Assembly Judiciary. The bills have
received only one no vote in any committee.
Sample opposition letters are available on the League Web site. Visit www.cacities.orgibillsearch
and type "AB 396" and "SB 802" into the search box to access up the letters.
Federal Stimulus Funds Bolster 2009 Summer Youth Employment Programs
Local Workforce Investment Areas (LWIAs) throughout California will be able to offer expanded
job training programs to young people this summer, as a result of the federal stimulus legislation
enacted in February.
California is set to receive $415 million of a total $1.2 billion now available nationwide through
Title VII of the American Recovery and Reinvestment Act (ARRA) (Public Law 111-5). The
funding has been distributed as grants to states to supplement existing Workforce Investment Act
(WIA) youth activities, including summer employment.
5In California the grant funds have been distributed by a pre-determined formula through LWIA.
WIA youth funds provide economically disadvantaged youth with training and other services to
provide them with the skills necessary to obtain unsubsidized employment, complete secondary
or post-secondary education, enter the military service, or enroll in a qualified apprenticeship
program. The $415 million nearly doubles the amount of W1A funds the federal government has
allocated to California in the current fiscal year. The program is available to low-income youth,
between the ages of 14 and 24.
Cities are encouraged to contact their LW1A to offer assistance and help coordinate on work sites.
Access a list of these at http://vvww.egd.cadov/Jobs and Training/Regional Advisor Listing.htm.
For more information, consult the May 22 update of the League's City Funding Book (available at
www.caoities.origifederaistimulus).
Registration Open for the 2009 League Annual Conference
It's time to register for the 2009 League Annual Conference. Scheduled for Wednesday, Sept. 16
— Friday, Sept. 18 at the San Jose Convention Center, the conference theme is "Strong Cities,
Strong State, Strong Nation." A full program announcement has been mailed to all cities and is
dvaildble blithe Leayue' Web Ili cit. www.t;c1t.iiieb.olgifitC.
There are five hotels adjacent to the San Jose Convention Center where attendees can make
reservations after registering for the conference.
The conference offers two money saving options:
1. New, condensed programming format will conclude on Friday evening with the Annual
Business Meeting and General Assembly vs. the previous Saturday format; and
2. Programming options will provide a one-day only registration option for each of the three
days.
Expand the value of your attendance by scheduling time on the Expo Hall trade show floor and
meeting with over 230 service providers to help your city enhance productivity and reduce
operating expenses.
If you haven't already registered, visit www.caoitiesorg/events to register for the 2009 Annual
Conference.
State Water Board Annual Stakeholder Meeting Scheduled June 5
The State Water Resources Control Board (SWRCB) will hold its annual water quality fee
stakeholder meeting on Friday, June 5. SWRCB is responsible for coordination and control of
water quality in the state.
The meeting is scheduled from 1-4 p.m. at the Cal-EPA Building (1001 I Street, Sacramento) in
Training Room 1 East and West.
Teleconferencing will be available at (916) 227-1132. An agenda and additional information on
the meeting can be found online.
http://www.waterboards.ca,govIresourcesifeesidocslagnda 060509.pdf
For additional information on the meeting, please contact David Boft with the State Water Board
at (916) 341-5130 or fee brancl-avaterboards.ca.gov .
6Department of Energy Webcast on Solar Panel Financing Set for May 27
The U.S. Department of Energy (DOE) Technical Assistance Project (TAP) for state and local
officials is offering a webcast on how to structure power purchase agreements for photovoltaic
(PV) projects at state and local facilities. The presentation will take place Wednesday, May 27,
from 12 — 1:15 p.m. Pacific Time, and is titled "Third-Party Financing and Power Purchase
Agreements for Public Sector PV Projects."
Jason Coughlin with the DOE National Renewable Energy Laboratory and Ann Livingston with
the Boulder County, Colorado Commissioner's Office will discuss how they have structured
financing for on specific PV projects.
The webcast is free, but you must register in advance to obtain a URL for the presentation and
call-in phone number. You can register online, find more information about the presenters, and
read background materials and reports on the TAP webcast section
(http://apps 1 .eere.enemysloviwipitap webcasts.cfm) of the DOE Weatherization and
Intergovernmental Program Web site.
If you have questions or need further information, please contact League Legislative
Representative Kyra Ross at kross(C4cacities.orq.
Since 2004, CitiPAC has been an important tool in the League of California Cities' political
advocacy efforts. CitiPAC funds have been central to many of the League's ballot measure
campaigns, such as the recent fight to defeat Proposition 98 and its restrictions on local control of
zoning and redevelopment These funds have been raised exclusively through the efforts of city
officials across the state that participate in regional fundraising events throughout the year.
The current economic recession has put financial pressure on cities and private industry alike,
creating a very difficult fundraising environment for organizations across the country. Many of the
League's regional divisions have consequently reassessed their fundraising efforts at the start of
2009. With a renewed focus on more efficient events and a greater emphasis on marketing and
communications, CitiPAC events are continuing to thrive in these tough times.
In April, the Los Angeles County Division of the League held a comedy night event at the Comedy
and Magic Club in Hermosa Beach. The evening of dinner and entertainment included a line up of
comedians that tailored their routines to the city officials in the crowd. This was the third year the
event was held. This year it doubled the amount of funds raised in prior years.
The Inland Empire and Desert Mountain divisions once again combined efforts for a very
successful "Night on Broadway" event Though this year's event was scaled down from past
editions, it still raised over $100,000. As an example of creative fundraising, the divisions
replaced lost sponsorship revenues by creating a silent auction component to the event which
brought in new contributions.
The East Bay and Peninsula Divisions recently held their annual Bocce Ball Tournaments which
continue to draw teams of city officials from around the Bay Area for an evening of dinner and
competition. "The Bocce Tournament has become the highlight of the year. It brings together
generous sponsors from the business community and public officials in a partnership on behalf of
local government," commented Peninsula Division President and Foster City Council Member
Linda Koelling about her division's event
The League's public affairs managers work with CitiPAC committee members to plan and
execute local events. In the current climate, direct fundraising appeals from city officials on behalf
of CitiPAC have become crucial to securing contributions. "City officials are the lifeblood of the
League and of CitiPAC," said Mike Egan, the League's public affairs fundraiser. Without their
direct participation, our events would not be as successful in this challenging economy."
7For more information about getting involved in upcoming events in your division, contact your
regional public affairs manager or visit the CitiPAC Web site at www.citipac.orq.
Coming Soon! Visit the New and Improved WesternCity.com
We've Made Our Site Better to Serve You Better
• New Web exclusive articles
• Improved search engine means finding what you want in a snap
• Read the latest issue or look up an article by topic
Exciting New and Improved Job Opportunity Database
• Searching for jobs has never been easier
• Create your own job listing and update it at any time. You're in control of your listing 24/7
• Get a Web site traffic report for your job listing
New Online Advertising Opportunities
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every day
• E-mail admanacier0)vvesteracity.com for more information.
Check out the new and improved www-.VVestemCity.corn this July!|1013|
May 29, 2009
Issue #20-2009
IN THIS ISSUE:
Page 5: Cities Continue to Declare State of Severe Fiscal Hardship in Wake of Budget Proposal
Page 6: Plan to Attend Budget Action Day on Wednesday, June 3
Legislature Holds Suspense Hearings: Information on Key Legislation League Tracking
Page 7: Robin Lowe Elected League First Vice President, Jim Ridenour, Second Vice President
League Neutral on Bill Regarding Healing Arts Businesses
Page 8: State Water Board to Hold Workshop on Water Quality Enforcement Policy
Coming Soon! Visit the New and Improved WestemCity.com
BUDGET UPDATE: AS STATE'S FISCAL WOES WORSEN,
LOCAL GOVERNMENT VULNERABILITY WIDENS
It was a busy week in the Capitol and across the state as the League of California Cities and city
officials continued fighting budget proposals to borrow $2 billion of local property taxes and take
other vital local government revenues to help close the state's now estimated $24 billion budget
deficit. These events garnered considerable news coverage by both the Capitol press corps and
reporters statewide. For more, see Page 2.
NEW WEB SITE, WWW.SAVEYOURCITY,NET, SHOWCASES HOW A STATE RAID
OF LOCAL PROPERTY TAXES WOULD HARM CALIFORNIA COMMUNITIES
The League of California Cities launched vi.ww.SaveYourCitv.net on Tuesday, May 26. This
unique and innovative platform lets mayors, city council members and concerned members of the
public tell policy makers how communities will be devastated if the state forces cities to bail the
state out of its budget deficit. Anyone can register on the site and submit a video.
For more, see Page 3.
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MAYORS AND COUNCIL MEMBERS HOLD PRESS CONFERENCE IN SAN DIEGO
TO URGE STATE LAWMAKERS TO LEAVE LOCAL FUNDS LOCAL
League of California Cities President Judy Mitchell joined San Diego Mayor Jerry Sanders and
dozens of other California mayors and council members at San Diego's Fire Station 35 on
Thursday, May 28 to speak out against a the proposal to borrow $2 billion of local property taxes
and take transportation funding to help balance the state's $24 billion budget deficit.
For more, see Page 4.'Budget' Continued from Page 1...
Big City Mayors Meet with State Lawmakers
League President and Rolling Hills Estates Mayor Judy Mitchell joined mayors representing five
of the state's largest cities, on Tuesday, May 26 in a series of meetings to oppose the borrowing
of local government funds. In the meetings were Los Angeles Mayor Antonio Villaraigosa, San
Diego Mayor Jim Sanders, Santa Ana Mayor Miguel Pulido, Sacramento Mayor Kevin Johnson
and a member of Oakland Mayor Ron Dellums' staff.
The mayors met with Gov. Arnold Schwarzenegger, Director of Finance Mike Genest, State
Controller John Chiang, State Treasurer Bill Lockyer, Senate Republican Leader Dennis
Hollingsworth (R-Murrieta) and Assembly Republican Leader Sam Blakeslee (R-San Luis
Obispo).
The dominant theme of the meetings, as well as a mid-day press conference, was the opposition
to borrowing local government revenues. The mayors shared with constitutional officers negative
impacts to cities that this proposal would create. The mayors are planning to return to the Capitol
next Wednesday to continue to lobby on behalf of cities.
SaveYourCity.net Launches
Also on Tuesday, the League launched mmt.SaveYourCity.net as a forum for mayors, city
council members and concerned members of the public to tell their stories about how their city
will be impacted if the state borrows $2 billion in local property tax revenues.
The site features video testimonials that are automatically sent to the Governor and the
legislators of the person who submitted the video. In just a few days, hundreds of city officials,
business and community leaders and the public have already submitted video testimony to
lawmakers and the Governor through www.SaveYourCity.net .
City officials are encouraged to upload a video testimonial to the Web site. The League's regional
public affairs directors can tape your message and help you upload it. Contact your regional
public affairs director to take action!
Additional Budget Proposals that Impact Local Governments
The Governor's office released an additional list of proposed cuts on Tuesday, May 26 which are
intended to replace the $5.6 billion revenue anticipation warrants in the original May Revise
proposal. Most important to cities is the proposal to take $750 million from the local share of
Highway Users Tax Account (HUTA) (gas tax) to pay for bond debt, bringing the total local share
next year from $1.05 billion to $300 million. This would not be a loan, so cities would not be
repaid in the future.
Last week on Thursday, May 21, the Legislative Analyst's Office (LAO) released analysis of the
Governor's May revise which also included additional budget suggestions. The LAO has
proposed borrowing $1.03 billion in HUTA revenues in FY 2009-10 with repayment to happen in
the next two-to-three years. League attorneys are also analyzing potential legalities associated
with this proposal. Finally, LAO has proposed redirecting some local public safety program
funding to the General Fund. These are just suggestions from the LAO, and so far neither the
Governor nor the Legislature has included them in their own proposals.
The Governor's Administration indicated on Tuesday in the Budget Conference Committee that
additional proposals for cuts could be expected. The Legislature has asked that the cuts be
released with details by the end of Friday.
During a Budget Conference Committee hearing on Thursday, the League strongly opposed this
proposal based upon the devastating impact that losing these funds would cause to local
communities. In addition, the League testified how this proposal breaks faith with the intent of the
voters when they voted for various state infrastructure bonds because it is likely that the voters
would not have supported taking local revenues to pay for the bonds. The League's initial legal
2research has found that this proposal has significant legal flaws that would cause it to be in
violation of various state constitutional provisions.
The League's fiscal consultant is in the process of preparing city-by-city estimates of the impacts
of this proposal. The information should be released Monday.
The LAO's budget analysis and report can be found on the LAO's Web site:
http:/iwww.lao.ca.ciov/2009/budirnav revise/may revision 052109.odf.
Local Government Organizations Send Letter to State Lawmakers
A group of 38 organizations representing local government interests, including the League of
California Cities, sent a letter on Thursday, May 28, to the Governor, all Assembly members, all
Senators and all state constitutional officers. The letter expressed the groups' opposition to any
proposed borrowing or taking of local government revenues by the state. It made clear how if the
state borrows or takes local government revenues it will compound problems at the local level
and that local governments are concerned that the state will have difficulty repaying the
borrowing.
San Diego News Conference
League of California Cities President Judy Mitchell joined will join San Diego Mayor Jerry
Sanders-and-d-ozerrs-d-ether • 0 • • • • . . - . - • . tabu!' 35 on Thursday to speak out against a the proposal to borrow $2 billion of local property taxes
and take transportation funding to help balance the state's $24 billion budget deficit. Please see
"Mayors and Council Members Hold Press Conference in San Diego to Urge State Lawmakers to
Leave Local Funds Local" for more information.
159 Cities Declare a State of Severe Fiscal Hardship
The momentum of cities declaring a state of severe fiscal hardship is building. Cities began taking
this action through resolutions the week of May 11. As of print on Friday, May 29, 159 cities had
passed a resolution declaring a state of severe fiscal hardship.
Budget Action Day June 3
The League is holding Budget Action Day in Sacramento on Wednesday, June 3. The one day
event is an opportunity for city officials to come to the Capitol and meet with legislators on budget
issues. Budget Action Day begins at 10 a.m. at the Citizen Hotel with a briefing. Comptroller John
Chiang will address city officials during the briefing.
'Save Your City' Continued from Page 1...
Each video uploaded to www.SaveYourCity.net is automatically sent to the Governor and the
legislators of the person who submitted the video. More than 200 city officials, business and
community leaders and the public have already submitted video testimony to lawmakers and the
Governor.
Visitors to www.SaveYourCitv.net will find an interactive forum where they can search for videos
relevant to their local community. The Web site also features a form for groups wanting to join the
Save Your City Coalition and a tool kit with fact sheets for how budget cuts will affect the
affordable housing community, public safety, the environment, labor, builders and business.
"The League is working on every level to protect vital city services for the millions of Californians
who live in cities. We've taken Save Your City to the Web because we know how important it is to
reach the public with information about threats to their communities. This site is a powerful tool
that gives people worried about cuts to city services a way to talk about the real impact a state
raid would have on their community," said League Executive Director Chris McKenzie.
3McKenzie recorded a video for the Web site talking about why it is so critical that proposals to
borrow local government property taxes are opposed. Click here to watch it.
http://www.youtube.corniwatch ?v= .34at IDSKIM
In addition to the Save Your City Web site, the League has also launched a page for Save Your
City on Facebook where fans can get the latest updates on the campaign and network with others
who are concerned about the devastating impact a state raid of local property tax revenues would
have on their city services.
Tress Conference' Continued from Page C._
"The League is working on every level to protect vital city services for the millions of Californians
who live in cities. Asking local governments for a bailout of the state's budget is like making a
sub-prime loan to a borrower who has a terrible credit rating and can't afford his daily expenses.
Robbing communities of gas tax funds that have been used for years to repair local streets is
short-sighted and will harm both the state's economy and the state's revenues. This is bad policy
from the start and California's cities shouldn't be forced to continue rescuing the state from its
self-inflicted financial misfortunes," said League President and Rolling Hills Estates Mayor Judy
Mitchell.
There were approximately 100 city officials at the news conference. Along with Mayor Sanders,
other speakers included League President and Rolling Hills Estates Mayor Judy Mitchell, League
Second Vice President and Modesto Mayor Jim Ridenour, Escondido Mayor Lori Holt Pfeiler and
San Diego Assistant Police Chief David Ramirez.
The mayors and council members at Thursday's news conference in San Diego emphasized how
their cities are already in fiscal distress and that forcing cities to loan the state money now will
have dire consequences for public safety and other vital services. Cities have been making tough
budget cutting decisions such as employee layoffs and furloughs, reduction of public safety
services, project delays and program reductions.
"We want our state leaders to hear loud and clear that taking our local property tax and gas tax
revenues will mean more layoffs, fewer police officers, few fire fighters, fewer potholes filled,
fewer programs to keep our youth engaged, shorter library hours and more. Cities have to
balance their budgets and can't shift the burden on to someone else's shoulders. It's time for the
state to bear the burden of its budget mess and leave cities to provide the services our residents
rely on us to provide," said League Executive Director Chris McKenzie.
4Cities Continue to Declare State of Severe Fiscal Hardship in Wake of Budget Proposal
Since May 11, 159 cities across California have declared a state of severe fiscal hardship and
opposed a proposal to take local property tax revenues to finance the state budget. Cities are
already struggling to balance their own budgets: enacting drastic cuts including public safety
reductions, employee layoffs, hiring freezes, project delays, program reductions and more.
159 Cities Declare State of Severe Fiscal Hardship
Desert Hot Lodi Rocklin
Adelanto Springs Lomita Rohnert Park
Albany Din uba Los Angeles Sacramento
Antioch Duarte Los Banos Salinas
Apple Valley Dunsmuir Los Gatos San AnseImo
Arcata El Cajon Loyalton San
Arroyo El Monte Marina Bernardino
Grande Elk Grove Marysville San Carlos
Artesia Encinitas McFarland San Jacinto
Arvin Escondido Merced San Luis
Atascadero Eureka Millbrae Obispo
Atherton Fairfield Modesto San Marcos
Bakcrsficld Felsom Moreno Sand City
Banning Fort Bragg Valley Santa Clara
Beaumont Fortuna Morro Bay Santa Cruz
Bellflower Fowler Mount Shasta Santa Fe
Benicia Fremont Mountain Springs
Biggs Gardena View Santa Maria
Blythe Grass Valley Novato Santee
Buena Park Grover Beach Oakdale Seaside
Calimesa Hanford Oceanside Sebastopol
Carmel Hawthorne Orinda Solana Beach
Carlsbad Hemet Orland Sonoma
Carson Hermosa Oroville Sonora
Cathedral Beach Palm Springs South San
City Highland Palo Alto Francisco
Chowchilla Hollister Paradise Stockton
Chula Vista Imperial Perris Taft
Citrus Heights Imperial Petaluma Tehachapi
Claremont Beach Placentia Temecula
Clayton Indian Wells Plymouth Torrance
Cloverdale lone Poway Tulare
Clovis Irwindale Rancho Vacaville
Coachella Jackson Cordova Vallejo
Coalinga La Mesa Rancho Visalia
Colfax La Puente Cucamonga Vista
Colusa La Quinta Rancho Walnut
Concord Lake Elsinore Mirage Wheatland
Corona Lakewood Red Bluff Wildomar
Coronado Larkspur Redding Williams
Covina Lathrop Redlands Williams
Culver City Lemon Grove Redondo Willows
Del Mar Santa Clarita Beach Yountville
Delano Lindsay Riverside
In the next month, 30 more cities are expected pass similar resolutions of severe fiscal hardship
and send a message to the Governor that his budget proposal to raid $2 billion in local property
taxes is unacceptable.
5A sample resolution can be found on the League's Web site
hap://www.cacities.org/resource files/28002_SAMPLERESOLUTIONFINDINGASEVEREASCAL
HARDSHiPMav8sxtf
Plan to Attend Budget Action Day on Wednesday, June 3
The League is holding a special event in Sacramento on June 3 to bring city officials to lobby their
legislators and administration officials on possible implications of the May 19 special election
results. The timing of this session is designed to allow many city officials to come in just for the
day.
With California's fiscal crisis, budget negotiations and testimonies are going to be extremely
important. The May revise has set the tone for the coming weeks of budget negotiations and this
is an important time to meet with your legislators to protect local funding. California cities need to
join forces to respond to the May revise proposals to ensure cities' needs are heard and
understood in the Capitol.
Schedule of Events
10 — 11:15 a.m., May Revise Budget Briefing
Citizen Hotel, Metropolitan Terrace, Sacramento, CA
• State Controller John Chiang will address city officials
11:15 a.m. — 3:30 p.m., Time for Scheduling Lunch and Lobbying Appointments with
Legislators
Please contact Meghan McKelvey at rnmckeiveyAcacities.orq or (916) 658-8253 if you would like
to attend.
District Budget Meetings
City officials who are unable to make the trip to Sacramento on June 3 are encouraged to contact
their League regional public affairs manager to schedule a district meeting with their legislator.
Legislature Holds Suspense Hearings: Information on Key Legislation League
Tracking
This week, bills with costs of $150,000 or more were examined by the appropriations committees
in the Assembly and Senate. The process of holding bills of this fiscal impact is called "suspense"
and the committees meet biannually to take up the suspense files then pass bills out of
committee that either fall below a set cost threshold or are agreed upon by the committee. There
were a number of bills of particular interest to cities that went through suspense including AB 155
(Mendoza) which the League has opposed very strongly through the legislative session.
The Senate Appropriations Committee held a significant portion of its suspense calendar this
year. In general, the committee held bills that expanded existing programs or created new ones.
However, they did let out about 80 bills with a total cost of about $3.6 million dollars to the state's
General Fund. Similarly, the Assembly Appropriations Committee let about half of its bills out of
committee, with a cost of about $6 million.
The cost of many of these bills will be absorbed by the implementing state agency's existing
budget, or the costs will be incurred through state or local fees. In the case of a number of the
bills, the implementation dates for the bills have been put off for several years. In those Gases, the
bill has no cost to the state's General Fund for FY 2008-09 (this budget year).
Below is a list of the key bills the League is watching, the League's position and how the bills
fared:
6• SB 194 (Florez): oppose, held by the Senate Appropriations Committee
• SB 518 (Lowenthal): oppose, approved by the Senate Appropriations Committee, but first
amended to make the mandatory provisions of the bill permissive
• AB 128 (Coto): oppose, held by Assembly Appropriations Committee
• AB 155 (Mendoza): oppose, passed by Assembly Appropriations Committee with
clarifying amendments
• AB 262 (Bass): support, passed by Assembly Appropriations Committee
• AB 396 (Fuentes) oppose, held by Assembly Appropriations Committee
• AB 479 (Chesbro): "watch," passed by Assembly Appropriations Committee
• AB 596 (Evans): support, held by Assembly Appropriations Committee
• AB 1284 (Huffman): support, held by Assembly Appropriations Committee
Robin Lowe Elected League First Vice President, Jim Ridenour, Second Vice
President
The League's 2009 board of directors nominating committee was called upon to select a
replacement for a vacancy on the executive committee caused by the resignation of Rancho
Cordova Council Member Ken Cooley ass first vice president. The committee nominated Hemet
Council Member Robin Lowe for the first vice president position and nominated Modesto Mayor
JimRidenour to fill the second vice presirinnt pos ition. ThA board of dirPntrirs rnrq to ApprnvP the
nominations on Friday, May 22.
Lowe has served on the Hemet City Council for 14 years, including four terms as mayor. Active in
the League as the second vice president prior to her nomination for first vice president, Lowe has
been a member of the board of directors since 2000 and has served as president of the Riverside
County Division and the Mayors and Council Members Department and chair of the
Transportation, Communications and Public Works Policy Committee. In addition, she was
elected to the National League of Cities board of directors in 2007.
Elected Modesto mayor in December 2003, Ridenour joined the League's board of directors in
October 2006 as the division representative from the Central Valley. Ridenour also has served as
the Central Valley Division representative on the Public Safety Policy Committee from 2006 to the
present.
The nominating committee will meet again in July to consider nominations for second vice
president and five at-large board member positions. The board of directors will consider the
nominations at its meeting in September in conjunction with the 2009 Annual Conference.
League Neutral on Bill Regarding Healing Arts Businesses
Last year, the League strongly opposed Assembly Bill 2427 (Eng), sponsored by the California
Veterinary Medical Association (CVMA). This bill attempted to prohibit local governments from
regulating local healing arts businesses under their existing police power. Healing arts
businesses are regulated by the California Department of Consumer Affairs and do not include
massage therapy services. The bill was brought to the Legislature after CVMA sued the city of
West Hollywood over an ordinance prohibiting the declawing of animals for non-therapeutic
purposes. While the city ultimately won the case and has had their ordinance upheld, CVMA
brought the bill to the legislature to overturn the ability of local governments to regulate veterinary
and other types of healing arts businesses. AB 2427 was ultimately vetoed by the Governor last
year.
This year, CVMA introduced SB 762 (Aanastead), a similar bill that deals with the local regulation
of healing arts professions. This version of the bill contains specific language to protect the
erosion of a city's police powers as it relates to ordinances, zoning, business licensing or
reasonable health and safety requirements. In addition, SB 762 grandfathers in the city of West
7Hollywood's ordinance. In light of this revision, the League has moved from an opposition
position to a neutral position.
For more information about SB 762 (Aanastead), visit the League's Web site at
www.cacities.orgibilisearch and type "SB 762" into the search function.
State Water Board to Hold Workshop on Water Quality Enforcement Policy
The State Water Resources Control Board (SWRCB) will hold a workshop in Sacramento on
June 4 to consider proposed revisions to portions of the State Water Quality Enforcement Policy.
SWRCB is the agency responsible for the coordination and control of water quality in California.
The proposed revisions to the Enforcement Policy can be found on the Water Resources Control
Board Web site:
http://www.waterboards.ca.gov/water issues/programs/enforcement/policy_revisions.shtml.
Workshop Details
The June 4 workshop is scheduled for 1:30-4:30 p.m. in the Coastal Hearing Room of the Cal-
EPA Building (10011 Street, 2nd Floor, Sacramento). It is not clear if the meeting will also be
webcast.
SWCRB will not take any action on the Enlorceiiieiit RJIILy di [lie wurkl tup but will WI 'bide'
comments and feedback from stakeholders regarding the proposed changes.
For further information on this meeting, please contact Ann Marie Ore at (916) 327-8195.
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