HomeMy WebLinkAboutCC Resolution 12576 (Opposing Irresponsible State Budget)RESOLUTION NO. 12576
RESOLUTION OPPOSING FISCALLY IRRESPONSIBLE STATE BUDGET
DECISIONS THAT WOULD "BORROW" LOCAL GOVERNMENT,
REDEVELOPMENT AND TRANSPORTATION FUNDS
WHEREAS, on July 1, 2008 the State Legislature missed its Constitutional budget
deadline; and
W1IEREAS, both the Governor and the Legislative Budget Conference Committee have
recommended balanced budgets without resorting to "loans" or seizures of local government
property tax, redevelopment tax increment and transportation sales tax funds; and
WHEREAS, in 1952, the voters of California approved Article XVI, Section 16 of the
California Constitution, providing for tax increment financing for community revitalization—not
balancing the state budget, and the voters never authorized the legislature to take or "borrow"
community redevelopment funds for state programs; and
WHEREAS, in 2004, by an 84% margin of approval the voters of California approved
Proposition 1 A and sent a loud and unambiguous message to state leaders that they should stop
the destructive and irresponsible practice of taking local government funds to finance the state
budget and paper over the state deficit; and
WHEREAS, in 2006, by a 77% margin of approval, the voters of California also
approved Proposition IA, providing similar protections to transportation funding for state and
local transportation projects, including important street maintenance and public transit programs;
and
WHEREAS, both ballot measures allow the Governor to declare a "severe state of fiscal
hardship" and "borrow" these funds if they are repaid in three years with interest, but the
Governor believes it would be irresponsible to "borrow" such funds because it would deepen the
state's structural deficit and cripple local government and transportation services; and
WI IEREAS, refusal by the Legislature to carry out its constitutional obligation to
compromise on a balanced budget is not a "severe state of fiscal hardship" and would not justify
reductions in critical local services, community revitalization programs and infrastructure
maintenance at a time when cities are struggling to balance their own budgets during this
economic downturn; and
Wl IEREAS, city investments in infrastructure, affordable housing and basic public safety
and other community services will create needed jobs and speed our economic recovery; and
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WHEREAS, the Legislature should balance the state budget with state revenues and
respect the overwhelming support of voters for not using local property taxes, redevelopment tax
increment and transportation sales tax funds to fund the day-to-day operating cost of state
programs; and
WHEREAS, it would be the height of fiscal irresponsibility to paper over the state
structural deficit with more borrowing, and Californians deserve state leaders who will tell them
honestly what needs to be done to produce a balanced budget; and
WHEREAS, it is time for the state of California to cut up its local government credit
cards and deal with the budget deficit in a straightforward way. Balance the state budget with
state funds.
NOW, THEREFORE, BE IT RESOLVED, that the City of San Rafael hereby opposes
any and all efforts by state government to "borrow" or seize local tax funds, redevelopment tax
increment and transportation sales tax funds by the state government to finance state operations.
Such a move would be fiscally irresponsible for the state and hamper effective local services and
infrastructure investments.
RESOLVED FURTHER, that the City Manager is hereby directed to send this resolution
and communicate this Council's strong and unswerving opposition on this matter to our
Legislators and the Governor along with an expression of our continued appreciation for the
Governor's and any supportive legislators' steadfast opposition to further borrowing or seizure
of these funds.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regi meeting of the City
Council of said City held on Monday, the 15th day of September, 2008 by the following vote, to
wit:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS:
Brockbank, Connolly, I leller & Vice -Mayor Miller
None
Mayor Boro
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