December 2, 2005
Issue #46-2005
The Legislature is
in recess until
January 4.
WANT MORE DETAILS
ON BILLS?
Visit the League of
California Cities
website at
www.cacities.org/
billsearch.
NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE HOMELAND HOMELAND HOMELAND HOMELAND HOMELAND
SECURITY PRODUCTS SECURITY PRODUCTS SECURITY PRODUCTS SECURITY PRODUCTS SECURITY PRODUCTS
REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING
THIRD QUARTER 2005 NATIONAL SURVEY OF ECONOMIC DEVELOPMENT THIRD QUARTER 2005 NATIONAL SURVEY OF ECONOMIC DEVELOPMENT THIRD QUARTER 2005 NATIONAL SURVEY OF ECONOMIC DEVELOPMENT THIRD QUARTER 2005 NATIONAL SURVEY OF ECONOMIC DEVELOPMENT THIRD QUARTER 2005 NATIONAL SURVEY OF ECONOMIC DEVELOPMENT
PROFESSIONALS RELEASED PROFESSIONALS RELEASED PROFESSIONALS RELEASED PROFESSIONALS RELEASED PROFESSIONALS RELEASED
FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS
APPROPRIATIONS BILL PASSED APPROPRIATIONS BILL PASSED APPROPRIATIONS BILL PASSED APPROPRIATIONS BILL PASSED APPROPRIATIONS BILL PASSED
OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY COMPATIBILITY COMPATIBILITY COMPATIBILITY COMPATIBILITY COMPATIBILITY
HANDBOOK HANDBOOK HANDBOOK HANDBOOK HANDBOOK
HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING
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The League of California Cities this week sent a letter to Congressman
Joe Barton (TX-6), chairman of the House Energy and Commence Commit-
tee, expressing serious concerns with his draft legislation relating to broad-
band internet transmission services (BITS). The letter was also sent to all
California members on the committee. For more, see Page 8.
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LEAGUE RESPONDS TO FEDERAL TELECOM PROPOSAL LEAGUE RESPONDS TO FEDERAL TELECOM PROPOSAL LEAGUE RESPONDS TO FEDERAL TELECOM PROPOSAL LEAGUE RESPONDS TO FEDERAL TELECOM PROPOSAL LEAGUE RESPONDS TO FEDERAL TELECOM PROPOSAL
The League board of directors set the course of the organization for 2006
after meeting with the leaders of the League’s departments, divisions, policy
committees and caucuses on November 18-19. After participating with the
League leaders in eight separate discussion groups, the directors considered
a list of proposed strategic goals formulated by the discussion groups. The
following focus and goals were adopted: For more, see Page 7.
LEAGUE BOARD ADOPTS STRATEGIC GOALS FOR 2006 LEAGUE BOARD ADOPTS STRATEGIC GOALS FOR 2006 LEAGUE BOARD ADOPTS STRATEGIC GOALS FOR 2006 LEAGUE BOARD ADOPTS STRATEGIC GOALS FOR 2006 LEAGUE BOARD ADOPTS STRATEGIC GOALS FOR 2006
HEALTHY, SAFE CITIES A STRATEGIC FOCUS HEALTHY, SAFE CITIES A STRATEGIC FOCUS HEALTHY, SAFE CITIES A STRATEGIC FOCUS HEALTHY, SAFE CITIES A STRATEGIC FOCUS HEALTHY, SAFE CITIES A STRATEGIC FOCUS
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The League of California Cities and the California State Association of
Counties (CSAC) are asking city and county officials to contact Gov. Arnold
Schwarzenegger and urge him to fund the local street and road maintenance
program under Proposition 42 in FY 2006-07 and FY 2007-08. For more, see
Page 8.
PROP. 42 – FILL THE GAP! PROP. 42 – FILL THE GAP! PROP. 42 – FILL THE GAP! PROP. 42 – FILL THE GAP! PROP. 42 – FILL THE GAP!
Page 3 Page 3 Page 3 Page 3 Page 3
Page 4 Page 4 Page 4 Page 4 Page 4
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Action Alert:
Write the Governor
about the Prop. 42
Funding Gap!Visit the League’s Official Website--www.cacities.org PAGE 2 - PRIORITY FOCUS
December 2, 2005 - Issue #46
The League of California Cities, together with
the U.S. Communities Government Purchasing
Alliance (a national purchasing program spon-
sored by the League), the National League of
Cities, and other local government associations, is
proud to announce the availability of a wide range
of homeland security products and equipment
through a new competitively-bid national contract
with Hagemeyer North America.
Through the U.S. Communities program, most
local governments may piggyback on a contract
competitively bid by another public agency to
purchase equipment and services at reduced
prices. The Hagemeyer contract with U.S. Com-
munities offers best national pricing (39 percent
off published prices) on the following homeland
security products and equipment:
• Personal protective equipment
• Explosive device mitigation and
remediation equipment
• Search and rescue equipment
• Interoperable communications equipment
• Detection equipment
• Decontamination equipment
• Physical security enhancement equipment
• Terrorism incident prevention equipment
• Logistical support equipment
• Medical supplies
• Reference materials
• Other public safety, law enforcement and
fire equipment
The cost for many of these homeland security
products may also be eligible to be reimbursed
through a grant program from the U.S. Depart-
ment of Homeland Security Office of Domestic
Preparedness. For more information on Federal
Homeland Security grants, contact the California’s
Office of Emergency Services or visit the Office of
Domestic Preparedness website at
www.ojp.usdoj.gov.
“The League is pleased to be a sponsor of
U.S. Communities,” said Chris McKenzie, League
executive director. “Working through our network
of state municipal leagues, we are able to provide
our members with opportunities for both cost
savings and administrative savings in typical
government purchases, and to bring the best
government pricing to all California cities, large or
small.”
The U.S. Communities program offers signifi-
cant saving to cities at many levels. It can reduce
spending through better pricing made possible by
the aggregate purchasing power of local govern-
ments nationwide. Today, more than 9,000 cities,
counties, schools and other public agencies utilize
U.S. Communities contracts. There is no fee for a
city to participate in the U.S. Communities pro-
gram and no minimum spending requirement.
This program is one that city managers should
review and share with police and fire departments
and purchasing managers.
U.S. Communities also offers office and
school supplies, office and classroom furniture,
electrical and data supplies, computers and
technology equipment, janitorial supplies, flooring,
and parks and playground equipment.
For general information about the program,
registration details, and to view the U.S. Commu-
nities product offering, visit the U.S. Communities
website at www.uscommunities.org. Information
about the program is also available by contacting
League Administrative Director Dan Harrison at
(916) 658-8267, or via e-mail at
dharrison@cacities.org.
For more information on the homeland secu-
rity products and equipment, contact Hagemeyer
North America at (888) 745-6486 or via e-mail at
uscommunities@hagemeyerna.com.
NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE NEW U.S. COMMUNITIES PROGRAM HELPS CITIES PURCHASE
HOMELAND SECURITY PRODUCTS HOMELAND SECURITY PRODUCTS HOMELAND SECURITY PRODUCTS HOMELAND SECURITY PRODUCTS HOMELAND SECURITY PRODUCTS
For more information on this and For more information on this and For more information on this and For more information on this and For more information on this and
other League issues, visit other League issues, visit other League issues, visit other League issues, visit other League issues, visit
www.cacities.org. www.cacities.org. www.cacities.org. www.cacities.org. www.cacities.org.PRIORITY FOCUS - PAGE 3 Visit the League’s Official Website--www.cacities.org
December 2, 2005 - Issue #46
While Congress was passing federal budget
language that would restrict the use of federal
funds for economic development projects involving
the use of eminent domain (see “Federal Update,”
p.4), five state legislative committees met in the
State Capitol in mid-November to examine a range
of redevelopment issues – including eminent
domain.
The legislative hearing was the second of two
interim hearings on redevelopment reform held this
fall. The second hearing focused on redevelop-
ment reform proposals prepared by Legislative
staff. A briefing paper on the proposals appears on
the Senate Local Government Committee’s
webpage at www.sen.ca.gov/locgov.
It appears that several legislators involved
intend to pursue a redevelopment reform agenda
when the Legislature reconvenes in January. For
example, in her opening comments, Sen. Christine
Kehoe, chair, Senate Local Government Commit-
tee, stated that “five or six” bills on redevelopment
would be considered in January.
Invited witnesses to the hearing included five
representing the California Redevelopment Asso-
ciation (CRA): Anne Moore, CRA president and
executive Director of the Sacramento Housing &
Redevelopment Agency; Brent Hawkins, CRA
general counsel from McDonough, Holland & Allen;
Murray Kane from Kane, Ballmer & Berkman; Lee
Rosenthal from Goldfarb & Lipman; and John
Shirey, CRA executive director.
Despite an advertised agenda that stated public
comment would be limited to 15 minutes, the
members allowed hours of public comments.
Approximately 35 witnesses spoke out against
redevelopment.
The legislative staff briefing paper prepared for
the hearing included 52 proposals. CRA prepared
written responses to all 52 proposals, and has
posted a copy on the CRA website
(www.calredevelop.org).
CRA observers left the hearing with one obser-
vation that should not be lost on all supporters of
redevelopment: several key members of the
State Legislature in leadership positions are no
longer focused solely on eminent domain issues
arising out of the public’s negative reaction to the
U.S. Supreme Court’s decision in Kelo v. New
London, but instead are poised to act on legisla-
tion next year that will further restrict the use of
redevelopment in California.
Members of the Legislature that attended all
or a portion of the joint hearing included Senators
Christine Kehoe (District 29), Roy Ashburn
(District 18), Dave Cox (District 1), Allan
Lowenthal (District 27), Bob Margett (District 29),
Tom McClintock (District 19), Nell Soto (District
32), and Tom Torlakson (District 7); and
Assemblymembers Joe Baca (District 62), Dave
Jones (District 9), Gene Mullin (District 19),
Simon Salinas (District 28), and Alberto Torrico
(District 20).
“Redevelopment and Blight,” the summary
report from the October 26 hearing in San Diego,
is now available on the CRA website at
www.calredevelop.org, along with a two-page
flyer explains how you can order your copy of the
report.
REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING REDEVELOPMENT SCRUTINIZED IN LATEST LEGISLATIVE HEARING
The National Survey of Economic Develop-
ment Professionals released its 2005 third
quarter survey recently.
Conducted by metro-level economic develop-
ment representatives nationwide, current survey
results revealed an upswing in announcement
activity, although overall prospects declined
during the third quarter of 2005.
In addition, the survey found that:
• Prospect and announcement activity
during the next six months is expected to de-
Continued on Page 6
????????????????????? ? ? THIRD QUARTER 2005 NATIONAL THIRD QUARTER 2005 NATIONAL THIRD QUARTER 2005 NATIONAL THIRD QUARTER 2005 NATIONAL THIRD QUARTER 2005 NATIONAL
SURVEY OF ECONOMIC DEVELOPMENT SURVEY OF ECONOMIC DEVELOPMENT SURVEY OF ECONOMIC DEVELOPMENT SURVEY OF ECONOMIC DEVELOPMENT SURVEY OF ECONOMIC DEVELOPMENT
PROFESSIONALS RELEASED PROFESSIONALS RELEASED PROFESSIONALS RELEASED PROFESSIONALS RELEASED PROFESSIONALS RELEASEDVisit the League’s Official Website--www.cacities.org PAGE 4 - PRIORITY FOCUS
December 2, 2005 - Issue #46
The U.S. Congress is set to return from its
Thanksgiving recess in December. The House of
Representatives reconvenes on December 5, while
the Senate will resume on December 12.
During the fall, Congress approved a number of
bills, including the passage of the Fiscal Year (FY)
2006 Transportation-Treasury-Housing and Judiciary
appropriations bill. Details on this development, and
others, can be found below:
Congress Approves FY 2006 Transportation-
Treasury-Housing and Judiciary Appropria-
tions Bill
On November 18, Congress passed the FY 2006
Transportation-Treasury-Housing and Judiciary
appropriations bill (H.R. 3058). This bill funds federal
transportation and housing programs. The bill
rejected the Bush Administration’s proposal to
eliminate the Community Development Block Grant
(CDBG) and 17 other community and economic
development programs into a new $3.7 billion
Strengthening America’s Communities Initiative block
grant. However, CDBG funding was reduced by
nearly 9 percent, from $4.11 billion in FY 2005 to
$3.75 billion.
In addition, the conference agreement, in re-
sponse to the Supreme Court’s Kelo v. City of New
London decision, would bar the use of funds in the bill
for any federal, state or local project that seeks to
use the power of eminent domain unless eminent
domain is employed for a public use. The bill specifi-
cally excludes economic development from the
definition of public use.
The House and Senate conferees opted not to
include in the final language the blight provision in the
Senate’s version of the bill, which allowed the use of
eminent domain for the removal of blight as well as
for public use. Instead conferees chose to narrow
the blight definition to include only “projects for the
removal of an immediate threat to public health and
safety or brownfields.”
The language also directs the Government
Accountability Office in consultation with the National
Academy for Public Administration, as well as
organizations representing state and local govern-
ments and property rights organizations, to conduct
a study on the nationwide use of eminent domain.
The report is expected to include “the procedures
used and the results accomplished on a state-by-
state basis as well as the impact on individual
property owners and on the affected communities,”
and must be submitted to Congress within 12
months of the enactment of the bill.
The bill also includes $36 billion for highway
programs, $8.6 billion for transit programs, and
$13.8 billion for the Federal Aviation Administration
(FAA). President Bush is expected to sign the bill
into law.
Congress Approves Second Continuing
Resolution
On Friday, November 18, the U.S. Congress
approved H.J.Res.72, a continuing resolution (CR)
that will maintain federal Defense and Labor-Health
and Human Services-Education programs until
Congress is able to pass the FY 2006 appropriations
measures that fund these programs. The new CR
will extend funding through December 17. As was
the case in the previous CR, H.J.Res 72 sets
temporary funding at the lowest of three spending
levels: the 2005 enacted level, the House-passed
2006 level or the Senate-passed 2006 level. Con-
gress has already passed the other nine FY 2006
appropriations bills. President Bush signed the new
extension into law on November 19.
December Action Expected On FY 2006
Labor-Health and Human Services-Educa-
tion Appropriations Measure
House and Senate conferees on the FY 2006
Labor-Health and Human Services-Education
appropriations measure (H.R. 3010) will be forced to
revisit conference negotiations on the bill when they
return from their Thanksgiving recess. The original
measure, which conferees delivered to the House
floor on November 17, was voted down by a 209 to
222 vote.
FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS
APPROPRIATIONS BILL PASSED APPROPRIATIONS BILL PASSED APPROPRIATIONS BILL PASSED APPROPRIATIONS BILL PASSED APPROPRIATIONS BILL PASSED
Continued on Page 5PRIORITY FOCUS - PAGE 5 Visit the League’s Official Website--www.cacities.org
December 2, 2005 - Issue #46
The $602 billion bill supports key health and
education programs and is the largest, and often
most contentious, of all the annual spending
measures. The rejected conference report
contained no discretionary program earmarks.
Congressional leadership is considering alterna-
tives to gain passage of the bill, which may involve
Congress passing a year-long CR for all federal
programs under the jurisdiction of the bill. Another
option that is being considered would re-confer-
ence the Labor-Health and Human Services-
Education appropriations bill and attach it to the
FY 2006 Defense appropriations bill, which is the
only other remaining FY 2006 appropriations
measure that Congress must pass prior to final
adjournment.
Congress Approves FY 2006 Science-
State-Justice and Commerce Appropria-
tions Measure
On November 16, Congress approved and
sent to the president the conference report on a
bill providing FY 2006 appropriations for Com-
merce-Justice-Science and related agencies
(H.R. 2862). Funding for the Justice Department
rose to $21.4 billion, an increase of $784 million
over FY05 funding and $1.1 billion above the
President Bush’s request. Of that amount, $2.7
billion will go to state and local law enforcement
assistance, a $287 million decrease from last
year’s funding but $1.1 billion over the president’s
budget. Key local law enforcement funding in the
bill is as follows:
• Justice Assistance Grants—$321 million
(down from $626 million in FY 2005)
• COPS Interoperable Communications—
$10 million (down from $99 million in FY
2005)
• COPS Hiring Grants—$0 (down from $10
million in FY 2005)
• COPS T echnology Grants—$129 million
(down from $137 million in FY 2005)
• Juvenile Justice Formula Grant—$80
million (down from $83 million in FY
2005)
• Juvenile Accountability Block Grant—$50
million (down from $54 million in FY 2005)
Congress Passes FY 2006 Energy and
Water Appropriations Bill
Congress approved the conference report on
the FY 2006 Energy and Water appropriations bill
(H.R. 2419) on November 14. The bill provides
$30.5 billion in budget authority, a $749 million
increase from the 2005 level, for the U.S. Army
Corps of Engineers-Civil, the Department of
Interior including the Bureau of Reclamation, the
Department of Energy, and several independent
agencies. President Bush signed the bill into law
on November 19.
Congress Approves FY 2006 Military Qual-
ity of Life and Veterans Affairs Appropria-
tions Measure
On November 18, Congress passed the $82.6
billion fiscal 2006 appropriations bill that funds
military construction and veterans’ programs (H.R.
2528). The measure has been sent to the presi-
dent for his signature. $70.2 billion is devoted to
the Department of Veterans Affairs. The bill also
includes an amendment by Sen. Feinstein that
provides an additional $24 million in the Navy’s
BRAC 1990 account for environmental
remediation at previously closed military bases.
??? ? FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS FEDERAL UPDATE: TRANSPORTATION AND HOUSING PROGRAMS from from from from from page page page page page 4 4 4 4 4
The League wants to stay in touch!
Just because you are leaving your position
with the city doesn’t mean you stop caring
about or wanting to be involved in city
issues. Keep abreast of developments
affecting cities and the League by becom-
ing part of the League’s alumni group.
Members will receive periodic updates on
city issues and League activities. This is
the League’s way of saying “thank you” for
your public service—there is no fee for this
service.
To join, go to www.cacities.org/alumni
or send your contact information to
dharrison@cacities.org.
Leaving City Office? Retiring?Visit the League’s Official Website--www.cacities.org PAGE 6 - PRIORITY FOCUS
December 2, 2005 - Issue #46
The Governor’s Office of Planning & Research
(OPR) is encouraging local decision makers and
planners, developers, the military and interested
community members to read and comment on a
new draft “Advisory Planning Handbook for Com-
munity and Military Compatibility Planning.”
This advisory handbook provides information on
how communities and the military can develop
collaborative processes and plans that will safe-
guard military readiness, sustain local economies,
and protect the health and safety of California’s
residents.
A draft of the handbook became available for
public comment on Thursday, November 30. A
complete document can be downloaded from the
project’s website at www.advisoryhandbook.com.
Comments can be submitted to OPR on the
website, through the mail or by fax at (916) 323-
3018. All comments are due by 5 p.m. on Friday,
December 30. Comments will also be taken at
three public hearings to be held in the High Desert,
Northern California, and Southern California regions
at the following dates, times, and locations:
December 12, 2005
6:30 p.m. - 8:30 p.m.
Kern County Board of Supervisors Chambers
1115 Truxtun Avenue
Bakersfield, CA
December 14, 2005
4:30 p.m. - 6:30 p.m.
State Capitol, Governor’s Council Room
1303 10th Street
Sacramento, CA
December 15, 2005
6:30 p.m. - 8:30 p.m.
Mission Valley Branch Library
2123 Fenton Parkway
San Diego, CA
OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY OPR SEEKS PUBLIC COMMENT ON COMMUNITY/MILITARY
COMPATIBILITY HANDBOOK COMPATIBILITY HANDBOOK COMPATIBILITY HANDBOOK COMPATIBILITY HANDBOOK COMPATIBILITY HANDBOOK
For more information, contact the OPR
Handbook Project Manager, Julia Lave Johnston,
at (916) 445-0613.
For comments submitted via mail, address
them to the following:
Governor’s Office of Planning & Research
P.O. Box 3044
Sacramento, CA 95812-3044
Attn: Julia Lave Johnston
crease compared to the previous quarter, how-
ever there is still a positive feeling about future
activity.
• Project Quality displayed mixed results
with real estate absorbed and capital investment
increasing, while total payroll, average salary, and
jobs are decreasing.
• Respondents felt that the national
economy became weaker during the last quarter,
although their local economies have become
stronger.
The survey was created to learn more about
economic development industry trends in the
United States by accessing the market knowl-
edge of professionals to compare current activity
levels and program impacts. The survey includes
a series of measures analyzing economic
development activity in four categories including
marketing levels, project quality/size, current
views of economic conditions, and impact of the
current economy on economic development
programs.
Complete survey results can be found online
at www.gpec.org/edsurvey/results.html.
ECONOMIC DEVELOPMENT SURVEY ECONOMIC DEVELOPMENT SURVEY ECONOMIC DEVELOPMENT SURVEY ECONOMIC DEVELOPMENT SURVEY ECONOMIC DEVELOPMENT SURVEY
from page 3 from page 3 from page 3 from page 3 from page 3
?????? ??????????????????PRIORITY FOCUS - PAGE 7 Visit the League’s Official Website--www.cacities.org
December 2, 2005 - Issue #46
Strategic Focus in 2006: To support policies
that directly promotes the development and
redevelopment of healthy and safe cities.
Strategic Goals: Building on the progress
made on similar goals in 2005, the board deter-
mined that, again in 2006, the League and its
divisions, departments, caucuses and policy
committees will focus it’s advocacy work on the
following:
• Infrastructure: Expanded funding for state
and local investment in the physical infrastructure
of California, including, but not limited to, its
roadways, bridges, levees, parks, libraries, and
systems for delivering and treating water, waste-
water and storm water.
• Housing: Expanded housing supply and
affordability for al Californians, consistent with the
planning and environmental quality objectives of
the League’s Principles for Smart Growth and the
League’s mission to restore and protect local
control.
• Redevelopment: Protection of redevelop-
ment funding and authority, the critical tools
necessary for local investment in future affordable
housing and the infrastructure so necessary for
the continued expansion of the California
economy.
LEAGUE LEAGUE LEAGUE LEAGUE LEAGUE from page 1 from page 1 from page 1 from page 1 from page 1
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In addition to selecting 2006 strategic goals,
the League board of directors addressed a num-
ber of other topics at its November meeting:
Telecommunications and Pension Reform.
The board received information and gave direction
on these critical issues. The League has active
task forces on both topics, providing the opportu-
nity to tap city and industry expertise and advice.
Legislative Year in Review. Dominated by
the November Special Election, 2005 yielded the
lowest number of new bills signed into law in
recent history — just 729, well below a typical
year. Cities fared very well. Highlights included:
• Proposition 1A. It worked — no additional
local budget raids were approved.
• Early repayment of the 2003 VLF Gap
Loan — few could anticipate the state repaying its
debts, not just on time, but early.
• Full funding for Proposition 42 transpor-
tation funds.
Possible Proposition 42 Reform Campaign.
The board again affirmed its desire to secure and
protect permanent funding for transportation
projects under Proposition 42. To achieve this,
the board authorized staff to explore possible co-
sponsorship of a Prop. 42 reform initiative on the
2006 statewide ballot.
Board Adopts 2006 League Budget. The
board adopted the League budget for calendar
year 2006. The budget includes a 5 percent dues
increase, which will allow the League to maintain
momentum and direct the full measure of League
resources to the strategic priorities selected for
2006. The League is well financed overall and
has adequate reserves, but the board approved a
number of actions and directed staff to implement
a plan over the next three years to ensure a
balanced budget.
Cities for Healthy Kids. In a 2003 action, the
board approved the League working with the
California Teachers Association and the California
HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING HIGHLIGHTS OF NOVEMBER BOARD OF DIRECTORS MEETING
Association of Health Plans in a joint effort to
enroll poor children in the federal Healthy Families
health insurance program. Phase I of this pro-
gram has just been funded by the WellPoint
Foundation. This will consist of focus groups to
identify how best to work with cities to identify
those kids who are eligible for no or low-cost
health insurance. The board reviewed project
plans, authorized the executive committee to
serve as the project oversight committee and
authorized the creation of a technical advisory
committee. For more information, contact Yvonne
Hunter at (916) 658-8242 or yhunter@cacities.org.Visit the League’s Official Website--www.cacities.org PAGE 8 - PRIORITY FOCUS
December 2, 2005 - Issue #46
PROP. 42 PROP. 42 PROP. 42 PROP. 42 PROP. 42 from page 1 from page 1 from page 1 from page 1 from page 1
??????????? ? ? Background. Since its enactment, with the
exception of the current fiscal year, the disappointing
history of the Prop. 42 program has been one of the
state using its authority to suspend the program each
year and then taking the money to help reduce gen-
eral fund deficits. During the first years of the Prop. 42
program, local governments were loaned money from
the State Transportation Improvement Program (STIP)
to cover two years of local street maintenance costs
under the program. Local governments received this
Prop. 42 “in-lieu” money while the money for state
projects was suspended, again to reduce state gen-
eral fund deficits.
In order to receive these initial funds, local govern-
ments were required to pay back the STIP in fiscal
years 2006-07 and 2007-08 by foregoing any Prop.
42 revenues. Consequently, under current law, cities
and counties will not receive additional Prop. 42 funds
until FY 2008-09, when cities are expected to receive
$280 million, based on expected gas tax revenues of
$1.4 million. That leaves a gap of between $254-280
million (based on the gas tax revenues) for the each of
the next two years.
Where We Are Today. Because the state’s fiscal
situation has improved significantly, and the governor
and his staff are busy preparing the 2006 state
budget, now is the ideal time to urge the governor to
propose a budget that “fills the gap” in Prop. 42
funding of local streets and roads.
With a $13 billion backlog in road and bridge
rehabilitation projects, city and county streets and
roads desperately need this transportation money to
maintain the public’s investment in the transportation
system. If these streets and roads are allowed to
further deteriorate, the reconstruction of the road is
vastly more expensive than the cost of routine mainte-
nance.
The League urges city officials to write the gover-
nor, asking him to “fill the gap” in Prop. 42 funding.
Tell him about the projects in your city that will be
stalled if the Prop. 42 funding gap is not filled. Also,
please send copies of your letter to your legislators, so
they are aware of your request to the governor.
A sample letter is available for download on the
League’s website at www.cacities.org.
The “BITS” legislation would establish a new
regulatory framework for a range of telecommuni-
cations-related technologies, including the delivery
of video over the Internet.
The letter articulates key principles that the
League argues should be included in future drafts
on telecommunications reform to protect California
cities’ ability to protect public rights-of-way and
provide basic services to residents and busi-
nesses. The League also expressed its willing-
ness to work with the committee as future drafts
are released.
In September 2005, the House Commerce
committee staff released a bi-partisan staff draft
bill. The League and national stakeholders did not
feel that the first draft was ideal, but through the
congressional representation, the League contin-
ued to work with staff to ensure that have local
concerns met.
In early November, however the committee
released the latest draft, which was a significant
revision of prior versions of the bill. The League
and other national organizations expressed great
concern over provisions that would limit video
franchise fees to 5 percent of subscriber revenue
instead of 5 percent of gross revenues, and limit
local governments’ ability to enforce public safety.
Congressman Barton had authored the previous
two drafts.
A full copy of the League’s letter to Congress-
man Barton can be found on the League website
at www.cacities.org.
Key Principles for Reform. The following are
some of the principles that the League believes
must be considered as part of reform:
• Preserving Valuable City Services - It is
essential that California cities retain current rev-
enue sources in any federal telecommunications
reform legislation in order to maintain basic ser-
vices to our residents.
• Maintaining Municipalities’ Authority in
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December 2, 2005 - Issue #46
Franchise Agreement Negotiations - Local
governments are committed to ensuring that
consumers benefit from any federal telecommuni-
cations reform policy. To maximize consumer
benefit it is important for local governments to
maintain the ability to work with providers through
franchise agreements to ensure the provision of
key services, including public, education and
government channels, and that local emergency
alerts and institutional networks are tailored to
meet specific local needs.
• Ensuring Service Availability to All
Consumers - Any federal telecommunications
overhaul policy needs to: address “digital divide”
concerns by preventing “redlining” that picks
higher income neighborhoods for service, while
excluding less-profitable, lower income neighbor-
hoods; and specify “build-out” requirements for
providers.
• Supporting Local Government’s Ability
to Regulate Use of Public Rights-of-Way -
Local governments are important and proven
stewards of the public rights-of-way, and are
pivotal in helping to prevent public safety issues
resulting from overcrowding and improper use;
ensuring local emergency (911) services are
provided; as well as addressing customer service
and local business concerns related to misuse of
public rights-of-way.
Next Steps. The House Commerce Committee
continues to work on a new draft of a telecommu-
nications re-write bill. The committee is aiming to
have a mark-up on a third draft during the week of
December 12 (see “Upcoming Senate Commerce
Committee Telecommunications Re-Write Sched-
ule”).
City officials are urged to monitor these devel-
opments closely, as the outcome of telecommuni-
cations reform could dramatically impact local
revenues and cities’ ability to provide essential
services. For more information on this issue,
please visit the Telecom page on the League’s
website (www.cacities.org/telecom).
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Tuesday, January 24, 10 a.m.
Video Franchising - Live Webcast
Full Committee Hearing
T uesday, January 24, 2:30 p.m.
Video Content – Live Webcast
Full Committee Hearing
Thursday, February 7, 10 a.m.
Competition and Convergence – Live
Webcast
Full Committee Hearing
Tuesday, February 14, 10 a.m.
State and Local Issues and Municipal
Networks –Live Webcast
Full Committee Hearing
Thursday, March 2, 10 a.m.
Wireless Issues/Spectrum Reform –
Live Webcast
Full Committee Hearing
Tuesday, March 14, 10 a.m.
Voice-Over Internet Protocol (VOIP) -
Live Webcast
Full Committee Hearing
Tuesday, March 14, 2:30 p.m.
Wall Street’s Perspective on T elecom-
munications – Live Webcast
Full Committee Hearing
NOTE: All hearings can be accessed
via the website on the date of the hearing at
www.commerce.senate.gov.
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