IN THIS ISSUE: Nov. 9, 2007
Issue #43-2007
Page 2: Preliminary Report on 2007 Local Revenue Measures Released
Page 3: Gang Reduction, Intervention, and Prevention Program Grants Now Available
Public Employee Post-Employment Benefits Commission to Meet in Sacramento
Page 4: Public Utilities Commission to Rehear Taking of Cities’ Rule 20A Funds
Local Program to Help Obtain Census Info Available
Page 5: Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
OREGON VOTERS UNDO UNFAVORABLE LAND USE RESTRICTIONS
California Voters Could Learn Something from Oregon’s Mistake
In 2004, Oregon voters approved Measure 37, a ballot initiative that placed severe restrictions on
local government land use authority. This week, three years and 7,500 lawsuits later, Oregon
voters showed that they had learned from that mistake. Voters passed a statewide ballot
proposition (Measure 49) by a 61 percent to 39 percent tally, undoing many of those restrictions.
California voters have an opportunity to learn from Oregon’s initial misstep. With two eminent
domain reform measures slated to be on the state ballot in June 2008, California has a chance to
get it right the first time. For more, see Page 2.
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ECONOMIC WOES FORCE PREPARATIONS FOR FY 2008-09 BUDGET DEFICIT
Governor Warns Department Heads to Cut Budgets by 10 Percent
With an increased potential budget deficit that could be as high as $10 billion for FY 2008-09,
Gov. Arnold Schwarzenegger earlier this week told state agency department heads to trim their
budgets by 10 percent.
When the FY 2007-08 state budget was signed in August, the Department of Finance originally
projected an approximate $6 billion deficit for FY 2008-09. The newly-projected top-end deficit of
$10 billion amounts to about 10 percent of the budget for the current General Fund. For more,
see Page 2.
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‘Oregon Voters’ Continued from Page 1…
The Homeowners Protection Act, supported by the League of California Cities, the League of
Homeowners and environmental, senior, business and labor groups, is honest, straightforward
eminent domain reform that would stop the taking of single family homes to transfer to a private
party.
The California Property Owners and Farmland Protection Act (CPOFPA), however, is supported
by mobile home park owners, apartment owners and other landlords. Much like Oregon’s
Measure 37, the landlords’ alternative measure would gut the ability of cities and counties to
regulate land-use and development to protect neighborhoods and the quality of life of residents.
Background on the Oregon Situation
Oregon’s experience with Measures 37 and 49 should serve as a lesson learned for voters in
California.
Originally sold as a way to “restore fairness,” Measure 37 allowed property owners to seek
compensation if regulatory actions reduced land value and restricted use. Governments facing
Measure 37 claims had to either pay compensation or waive the regulations.
As a result, more than 7,500 lawsuits were filed in a little more than two years, seeking new
development on 750,000 acres. Neighbors fought over development plans and there was even a
threat to build a power plant on privately-owned land inside a national monument — unless
government paid millions to the property owner in compensation.
These resulting adverse consequences were not what Oregon voters thought they were getting in
2004. For this reason, they voted overwhelmingly to substantially restore many of the controls on
development of that had been ensnared by the broad language of the 2004 measure.
The new measure (Measure 49) allows rural landowners to build a few homes — three in most
cases and as many as 10 for some — but curb larger subdivisions and the industrial development
allowed under the 2004 law.
This Oregon experience provides California with a valuable lesson as the June 2008 ballot
approaches. If CPOFPA is approved by voters, it would likely lead to the type of unintended
consequences that plagued Oregon for more than two years. By voting for the Homeowners
Protection Act and rejecting the landlords’ hidden agendas measure, however, California voters
can avoid what happened in Oregon and get true eminent domain reform.
_____________________________________________________________________________
‘Budget Deficit’ Continued from Page 1…
California’s economic problems stem from the steep downturn in the housing market and a ripple
effect across income tax, property tax and sales tax. The Department of Finance reported in
October that year-to-date revenues were $777 million below the forecasted $22.66 billion. In
addition, the General Fund year-to-date income tax revenues are $367 million below forecast.
The Governor will issue his budget on Jan. 10, 2008. The League will continue to monitor the
budget and will provide updates through Priority Focus and the League’s Web site at
www.cacities.org.
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Preliminary Report on 2007 Local Revenue Measures Released
Michael Coleman, the League of California Cities’ fiscal consultant, has released a preliminary
report on the 63 local revenue measures that voters considered on the Nov. 2007 ballot. Overall,
32 measures concerned city taxes, fees or financing. Five were special taxes requiring two-thirds
voter approval, 26 concerned general taxes requiring majority voter approval, and one was an
initiative repeal of a fee. 3
To view the preliminary report, visit www.californiacityfinance.com and search for “Votes on Local
Taxes, Bonds and Other Local Revenue Measures November 2007.”
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Gang Reduction, Intervention, and Prevention Program Grants Now Available
The Governor’s Office of Emergency Services (OES) is offering $4.3 million in grants to cities for
gang prevention, intervention, re-entry, education, job training and skills development, family and
community services, and suppression activities. Cities may request up to $500,000 to cover up to
three years of anti-gang programs in their local areas.
The grant requires cities to provide a “dollar-for-dollar” match, meaning the amount awarded to a
city must be equally matched by the city through local or federal dollars in the form of cash or in-
kind services.
The OES grant program is a subset of Gov. Arnold Schwarzenegger’s California Gang Reduction,
Intervention and Prevention (CalGRIP) initiative launched earlier this year and involves several
state agencies and existing state programs focused on reducing the problem of gang violence in
California.
All grant proposals must be postmarked by 5 p.m. on Monday, Nov. 26 for consideration.
The Request for Proposal (RFP) applications are available electronically on the OES Web site at
www.oes.ca.gov under the “Grants & Funding” header. Click on the link for “Law Enforcement
and Victim Services,” and then “Request for Proposal Funding Information,” to locate the
appropriate form.
Questions concerning grant applications should be directed to Kirby Everhart, chief, OES Crime
and Gangs Branch, at kirby.everhart@oes.ca.gov. Applicants are requested to submit questions
via e-mail so that a written record can be maintained of questions asked and the answers given.
_____________________________________________________________________________
Public Employee Post-Employment Benefits Commission to Meet in Sacramento
The Public Employee Post-Employment Benefits Commission (PEBC) will be examining
proposals on how to address California’s public debt related to post-employment benefits – such
as retirement and health care – at its next meeting on Tuesday, Nov. 13, in Sacramento.
Established by Gov. Arnold Schwarzenegger by executive order S-25-06 in Dec. 2006, the 12-
member commission has met statewide over the last year and must prepare a final report on the
issue by Jan. 2008.
Various organizations and agencies have provided PEBC with recommendations, including the
League of California Cities. The League's proposal for pension reform includes the need to
provide full-career employees with adequate benefits to continue their standard of living into
retirement through fiscally sustainable contributions by the employers and taxpayers. For more
on the League’s recommendations, see “Governor's Post-Employment Benefits Commission
Prepares for Final Report” at www.cacities.org/er.
The Nov. 13 meeting will be held in at the headquarters of the California Public Employees
Retirement System (CalPERS), located at 400 Q Street. For more information, contact Ashley
Snee Giovannettone at (916) 869-9419.
_____________________________________________________________________________
4
Public Utilities Commission to Rehear Taking of Cities’ Rule 20A Funds
Cities Encouraged to Submit Comments
The California Public Utilities Commission (CPUC) has agreed to rehear its prior decision to
reallocate Rule 20A funding from cities with “inactive” undergrounding programs. The funds,
acquired from ratepayers, are used for the underground placement of electrical lines.
Due to some cities not receiving notice prior to CPUC’s initial decision to relocate the funds, the
League of California Cities had requested that the commission rehear the issue. CPUC agreed
and is now soliciting comments from cities on the matter.
How to Comment
CPUC has set a comment and reply schedule for the rehearing. Comments are due no later than
Monday, Nov. 26. Reply-to comments are due no later than Dec. 3. The League intends to
submit comments in this proceeding and encourages interested cities to do so as well,
emphasizing the particular circumstances regarding your city’s undergrounding program, and the
role that Rule 20A funds will play.
The League believes these individual letters will assist CPUC in understanding that a “one-size-
fits-all” approach is not appropriate in determining which cities may truly have no need for their
Rule 20A funds.
To have your city placed on the service list for this proceeding, send an e-mail to
bds@cpuc.ca.gov with “AL 2110-E” in the subject line. In the body of the e-mail, include the
following information:
• Organization name
• Postal address
• Contact Name
• E-mail address
Further updates on this issue will be published in Priority Focus as the matter moves through the
CPUC process.
_____________________________________________________________________________
Local Program to Help Obtain Census Info Available
Although the 2010 Census is still three years away, the U.S. Census Bureau has begun mailing
informational booklets to all state, local and tribal governments about the Local Update of Census
Addresses (LUCA) program – a tool for governments to provide updated addresses for their
communities.
This joint and voluntary program between the Census Bureau and local governments is the
official start of the 2010 Census. The Bureau projects that by 2010, there will be more than 310
million people living in the 50 states, Washington, D.C. and Puerto Rico.
In partnership with the Census Bureau, local governments will use their area knowledge to
improve the list of addresses for housing units and group quarters, including growth from new
construction or annexation.
After registering for LUCA between now and Jan. 2008, participating governments will receive
review materials to improve the address list.
The information contained in the address list is confidential by law, and those governments that
choose to participate in the LUCA program will be provided an option to review the Census
Bureau’s address list. Like all census employees, those who review and update a confidential
address list are subject to a jail term, a fine or both if they disclose any protected information.
5
After LUCA, but prior to the 2010 Census questionnaire delivery, address listers will perform a
field canvass across the country to make sure the latest address list is correct. Using global
positioning system (GPS) mapping on hand-held computers, workers will be able to update
information electronically while out in the field.
For more information, visit the 2010 Census LUCA Program at
www.census.gov/geo/www/luca2010/luca.html, or call the Census Bureau Geography Division at
(866) 511-5822.
_____________________________________________________________________________
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
Visit (and bookmark!) the League’s Legislative Resources Web page
(www.cacities.org/legresources). You’ll find a roster and contact information for the League’s
legislative staff; the online Bill Search program, background materials on lobbying your
legislators, and more.
_____________________________________________________________________________
IN THIS ISSUE: Nov. 16, 2007
Issue #44-2007
Page 3: CalGRIP Grant Proposal Deadline Extended to Dec. 10
Page 4: Keeping our Heads Above Water
Have a Housing Success Story? Tell Us About It!
New Tool for Promoting Informed Involvement in the Land Use Process Available
Page 5: League Legislative Briefings Scheduled for November
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
Editor’s Note: Due to the Thanksgiving holiday, Priority Focus will not publish on Friday,
Nov. 23, as regularly scheduled. Publication will resume on Friday, Nov. 30.
STATE AND LOCAL OFFICIALS PROTEST ANTI-RENT CONTROL MEASURE
On Wednesday, Nov. 14, elected officials joined with senior citizen groups, tenant rights
advocates and mobile home residents in at the Civic Center Plaza in San Francisco to protest the
so-called "California Property Owner and Farmland Protection Act" (CPOFPA) – a measure that
would abolish rent control. For more, see Page 2.
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FORECAST OF FY 2008-09 STATE BUDGET LOOKS GRIM
Legislative Analyst’s Office Predicts $9.8 Billion Shortfall
The Legislative Analyst’s Office (LAO) issued a dour FY 2008-09 state budget forecast earlier this
week, warning that the state must prepare for a $9.8 billion budget deficit. The report follows a
statement from Gov. Arnold Schwarzenegger last week, calling for state agency department
heads to reduce spending plans by 10 percent. For more, see Page 3.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
LEAGUE ISSUES INFRASTRUCTURE BOND IMPLEMENTATION UPDATE
Thanks to the passage of the infrastructure bonds on the Nov. 2006 ballot, various pots of money
are available to local governments for projects relating to transportation, housing, environmental
quality, levee repair and construction and educational facility construction.
The difficulty, however, is figuring out how much – and when – the funding is available. To that
end, the League of California Cities has published an update on the status of the infrastructure
bond implementation. To download a copy, see “Infrastructure Bond Implementation Update –
Nov. 2007” at www.cacities.org/infrastructure.
2
‘Anti-Rent Control Measure’ Continued from Page 1…
CPOFPA, slated for the June 2008 ballot and similar to the failed Proposition 90 from the Nov.
2006 election, is supported by wealthy apartment owners, mobile park owners and the Howard
Jarvis Taxpayer Association (among others).
Just like Prop. 90, supporters of CPOFPA are using eminent domain as a "Trojan horse" to enact
drastic changes to abolish rent control, affordable housing laws and other renter protections.
CPOFPA also contains poorly drafted provisions that could stop future water projects, destroy
local land use planning and erode environmental protections.
The San Francisco news conference was attended
by Assembly Member Mark Leno, D-San Francisco,
and San Francisco Public Utilities Commission
General Manager Susan Leal. South San Francisco
Vice Mayor Pedro Gonzalez was also on-hand to
oppose the measure.
Ted Gullicksen, head of the San Francisco Tenants
Union, helped organize the rally. Stressing his
opposition to the measure, Gullicksen stated that the
measure is a sinister trick on the voters and unless it
was beaten, CPOFPA would hurt seniors, single
mothers and others who struggle to make ends meet
by taking away safe, affordable housing. He also mentioned that in San Francisco alone, this
measure would affect more than 180,000 rental units.
Calling CPOFPA the “Landlords’ Hidden Agenda Scheme,” Gullicksen pointed out that if
CPOFPA gets on the ballot and is approved by voters, the measure would jeopardize laws that
require the fair return of rental deposit, laws that require a 60-day notice before forcing renters out
of housing and laws that protect seniors and the disabled from drastic rent increases.
Other notable figures at the conference included:
• Lupe Arreola, St. Peter’s Housing Committee
• Barbara Blong, Senior Action Network
• John Rizzo, Sierra Club
• Tim Paulson, San Francisco Labor Council
Local media descended on the conference in droves, including most TV outlets and a number of
major print news publications. Press attendees included:
• KNTV-TV11 NBC
• KTVU-TV2 FOX
• KGO-TV7 ABC
• KPIX-TV5 CBS
• KTSF-TV26 (Independent/Asian)
• KSTS-TV48 (Telemundo)
• KBCW-TV44 CW
• KPFA-FM
• KGO-AM
• World Journal
• San Francisco State Express
• San Francisco City Star
• San Francisco Examiner
• Ming Pao Daily
• Sing Tao Daily
• International Daily News
• San Francisco Bay Guardian
• Beyond Chron 3
• Northgate News
The Homeowners Protection Act
In addition to protesting CPOFPA, the conference focused on support for the Homeowners
Protection Act. The Homeowners Protection Act offers real eminent domain reform by
prohibiting state and local governments from using eminent domain to secure a home to transfer
to a private developer. The coalition supporting the Homeowners Protection Act includes
homeowners, labor, business, environmental groups, seniors and local government.
_____________________________________________________________________________
‘State Budget’ Continued from Page 1…
The state budget is expected to carry over $2 billion in debt from FY 2007-08. That amount,
combined with the projected $8 billion shortfall between spending and revenue, brings the deficit
to nearly $10 billion. Confirming the budgetary news at a press conference on Wednesday, Nov.
14, Legislative Analyst Elizabeth Hill also cautioned that the shortfall is anticipated for a number
of years into the future.
LAO identified several factors contributing to the state’s budget problem, including the lower state
revenue projections due to the economy’s current outlook, lower property taxes and impact on K-
14 education funding. Additional factors include an expected delay in the sale of EdFund and its
value, the delay in new tribal compact implementation and a court ordered payment to the state’s
teacher retirement system.
The Governor will issue his proposed FY 2008-09 state budget on Jan. 10, 2008. The League
will continue to monitor budget issues and will provide updates through Priority Focus and the
League’s Web site at www.cacities.org.
_____________________________________________________________________________
CalGRIP Grant Proposal Deadline Extended to Dec. 10
The Governor’s Office of Emergency Services (OES) has announced that the proposal deadline
for California Gang Reduction, Intervention and Prevention (CalGRIP) program funding has been
extended two weeks to Dec. 10.
The deadline was moved because of the impact the Southern California wildfires had on many
local government operations. Every city, regardless of location, is eligible for the extension.
As originally reported in the Nov. 9 edition of Priority Focus, through CalGRIP grants, $4.3 million
is available to cities for gang prevention, intervention, re-entry, education, job training and skills
development, family and community services, and suppression activities. Cities can request up
to $500,000 to cover up to three years of anti-gang programs in their locations.
The grant requires cities to provide a “dollar for dollar” match. This means that cities must match
the amount awarded by OES through local or federal funding in the form of cash or in-kind
services.
The OES grant program is a subset of Gov. Arnold Schwarzenegger’s CalGRIP initiative
launched earlier this year. It involves several state agencies and existing state programs focused
on reducing the problem of gang violence in California.
Application Process and Instructions
All grant proposals must be postmarked by 5 p.m. on Monday, Dec. 10, for consideration.
The RFP applications are available electronically on the OES Web site at www.oes.ca.gov, under
the “Grants & Funding” header. Click on the link for “Law Enforcement and Victim Services,” and
then “Request for Proposal (RFP) Funding Information,” to locate the appropriate form.
4
Questions concerning grant applications should be directed to Kirby Everhart, chief, OES Crime
and Gangs Branch, at kirby.everhart@oes.ca.gov. Applicants are requested to submit questions
via e-mail so that a written record can be maintained of questions asked and the answers given.
_____________________________________________________________________________
Keeping Our Heads Above Water
ACWA’s ‘California Water Crisis’ Educational Program Continues
The Association of California Water Agencies (ACWA) has released a new advertisement and
fact sheet about “California’s Water Crisis,” its ongoing public education program. The program is
designed to increase public awareness about the state’s water delivery and storage system and
its impact on the state economy and environment.
Fact sheets are now being distributed that examine the various threats to the water supply and
delivery system. The newest fact sheet focuses on statewide water supply cutbacks resulting
from a federal court-order this summer that temporarily stopped water pumping in the Delta to
protect a species of fish.
The fact sheets can be downloaded at www.calwatercrisis.org by clicking on “About the Problem.”
The new print ad can also be downloaded at the Web site. To find the ad, click on “See Our Ads”
on the right hand navigation and then scroll to the bottom of the page featuring the spots.
Cities Encouraged to Participate
Local government can get involved with ACWA’s efforts and help educate residents about water
issues. Cities interested in partnering in the ACWA program should contact Statewide Outreach
Director Scott Adams at (818) 760-2121 or scott@calwatercrisis.org.
All of the resources produced for the program have been created so that organizations, local
government and others can educate the public. ACWA has made its program logo available for
partner organizations to use on their Web sites, along with the print ad, fact sheets and an
informational brochure. A number of local government cable stations are also running the TV
spots.
_____________________________________________________________________________
Have a Housing Success Story? Tell Us About It!
Focus on Housing, the League of California Cities’ electronic monthly housing newsletter, is
seeking new housing success stories to profile for its upcoming issues.
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.
Questions and submissions should be sent to League Communications Specialist Brian Heaton
at bheaton@cacities.org.
_____________________________________________________________________________
New Tool for Promoting Informed Involvement in the Land Use Process Available
The Institute for Local Government (ILG) has developed a new planning and public engagement
tool for cities and counties. Nicknamed the “Land Use One-Pager Project,” these “one-pagers”
offer local agencies a set of descriptions of common land use decisions, with the goal of
promoting informed public participation in land use decision-making.
Local agencies can attach the one-pagers to public hearing notices or have them available in
hard copy form at planning counters. They are also available as links to attach to e-mailed
notices or as content for Web sites. All of the one-pagers are available in either .pdf or Microsoft 5
Word format (if you want to customize them for your own agency’s needs) at www.ca-
ilg.org/onepagers.
ILG is grateful to Citrus Heights Director of Community Development Janet Ruggiero for
suggesting this project and to all the peer reviewers that took part in the process. This effort was
made possible by financial support from the law firm Burke, Williams, and Sorensen, LLP.
_____________________________________________________________________________
League Legislative Briefings Coming Up
The League of California Cities is hosting two briefing sessions in November. Scheduled for
Wednesday, Nov. 28, in Pasadena and Thursday, Nov. 29, in San Jose, these identical briefings
will focus on bills of note to city officials that passed in the previous legislative session.
Tentative session topics will include:
• Implementation of the State Infrastructure Bond Package
• The fate of ACA 8 and pending initiatives—What’s next on eminent domain and
regulatory takings
• Climate Change: ARB Regulations, SB 375 (Steinberg), the attorney general’s lawsuits,
California Environmental Quality Act (CEQA) Guidelines: Are your ready for this kind of
“green heat?”
• Growing Pains: Legislation affecting redevelopment, flood control, environmental issues,
housing and land use
• Employee relations and workers compensation
• Sex offender management, gang abatement, and prison overcrowding: local implications
The cost of attendance is $140, which includes a luncheon. Registration and further information is
available at www.cacities.org/events.
_____________________________________________________________________________
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.
_____________________________________________________________________________