HomeMy WebLinkAboutCC Resolution 11346 (Urge Legislature Use Balanced Approach for Budget)RESOLUTION NO 11346
A RESOLUTION OF THE SAN RAFAEL CITY COUNCIL URGING THE
CALIFORNIA LEGISLATURE TO USE A BALANCED APPROACH IN ADOPTING
THE STATE BUDGET
WHEREAS, the State of California is facing the worst budget crisis since the 1930's Great
Depression, threatening the ability of state and local government to deliver essential services and
threatening the long-term fiscal health of state and local government; and
WHEREAS, cities and counties are in the midst of approving their own operating and capital
budgets for the 2003-04 fiscal year and cannot adequately make decisions about the funding of
local government services until the state budget is finalized; and
WHEREAS, the State of California is facing a $38 billion deficit, and dramatic measures must
be taken to reduce spending and protect state and local services; and
WHEREAS, the City and County officials of California understand the interdependence of the
fiscal condition of state government and local government; and
WHEREAS, the financial condition of the State of California is so serious that it is incumbent
upon state leaders to both cut spending and enact temporary increases in revenues to avoid
making future generations of Californians pay for the budget deficit; and
WHEREAS, local officials have already taken measures to reduce local spending, but the failure
of the State to adopt a balanced budget could imperil local services; and
WHEREAS, the boards of directors of the League of California Cities, California State
Association of Counties and California Special Districts Association have endorsed a set of
principles calling for a balanced approach to managing the state budget deficit.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael,
California, that the following balanced budget principles be supported in the upcoming budget
process:
• Spending Cuts. Reduce the current estimated deficit through state spending reductions,
minimizing federal fund loss where possible.
• Short-term Borrowine. Finance part of the budget deficit over a period of up to 5 years
through the issuance of short-term debt instruments, secured by temporary taxes that are
dedicated solely to retiring the short-term debt.
• Revenues for Deficit Reduction. Adopt a set of tax increases dedicated solelv to retiring
the short-term debt and the remaining structural deficit.
• Reserve. Require a prudent reserve that could be accessed during economic shortfalls.
• Vehicle License Fee Covenant. Keep the VLF covenant made to local governments, by
activating the VLF trigger or continuing the state General Fund revenue backfill.
• Local Government Reductions. Limit the local government share of overall budget
reductions to a one-time amount not to exceed the proportion of state subventions to local
governments as a percentage of the state general fund budget.
• Multi -Year Snendine Limitations. Limit the growth in state spending during the
repayment of the short-term debt. Expenditures would be limited to population growth,
inflation and mandated caseload increases. Available funds over the limit would be
dedicated to debt retirement.
• Local Revenue Protection. In the Constitution, prohibit the legislature from taking local
government revenue or shifting costs to local governments unless (1) the Governor
declares a fiscal emergency, and (2) the legislature approves by a 2/3rds vote, and (3) the
amount taken or shifted is fully reimbursed.
• Structural Reforms. Further explore structural reforms as suggested in the April 23,
2003 letter to Governor Davis, Senator Burton, and Assemblymember Nation, from the
elected leaders in Marin representing all 11 cities and towns, 15 school districts and the
County Board of Supervisors.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the Council of
said City on the 7t' of July, 2003 , by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
A'
�A�E. LEONCINI, City Clerk