The State Budget Situation

(Updated ~ June, 2004)

2004-05 California State Budget
(Includes excerpts from the League of California Cities website)

City officials are contacting their legislators to urge them to quickly pass the constitutional protection package negotiated last month with Governor Arnold Schwarzenegger.  The budget package means that local governments will endure two painful years of revenue losses totaling $1.3 billion for each year ($350 million from cities, $350 million from counties, $350 million from special districts and $250 million from redevelopment agencies). (Note: Redwood City's portion of this loss is approximately $1.5 million in each of those two years)

What they gain is Governor Schwarzenegger's strong commitment that he will work with local government officials for passage by the legislature and the voters of an alternative constitutional measure that would prevent any further state takeaways of local revenues needed to fund police, fire, health and welfare and other essential local services.

Additionally, the package would constitutionally guarantee repayment of the VLF Backfill Loan of FY 2003-04 to cities and counties in FY 2006-07, and repayment of previously deferred mandate reimbursements to local governments commencing in FY 2006-2007.

If the legislature fails to pass this package, then the LOCAL Coalition (Leave Our Community Assets Local - a grassroots network of local
and state individuals and organizations in California representing public safety, business, labor, health, local government, seniors and community groups) will focus solely on passage of the Local Taxpayers and Public Safety Protection Act which has already qualified for the ballot with over one million signatures.

The League provides this overview of the Governor's agreement.

The City of Redwood City believes that its constituents should be well-informed of these aspects of the State budget, and that they should let their State elected officials know of their opinions on the matter. Redwood City urges interested citizens to contact their local members of the State Senate and Assembly, as well as Governor Schwarzenegger, and clearly articulate their thoughts and outlook on the State budget situation.