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For Immediate Release

City Council Votes to Support Proposition 1A –
“Protection of Local Government Revenues”

Redwood City, CA -  August 24, 2004 - At its meeting of August 23, the City Council of Redwood City adopted a Resolution in support of Proposition 1A , on the November 2, 2004 ballot. If passed by the voters, this proposition would place restrictions on the State legislature’s ability to take local government funding.

See the City’s staff report, which includes the resolution and background materials. Non-partisan information on Proposition 1A is available on the California Secretary of State’s website, and at the League of Women Voters Smartvoter website.

In taking this position in support of Proposition 1A, the City Council noted that since 1991 the State has taken an astonishing total of over $35 million from Redwood City’s local funds. Had there earlier been a preventative measure in place such as Proposition 1A, the most recent State seizures of funds would not have taken place, and the City’s budget deficit would be significantly lower.

This measure, if passed by the voters, will restrict the State Legislature’s ability to take local government funding, including local governments’ share of existing sales taxes, property taxes and Vehicle License Fee (VLF) revenues. It will require the State to provide funding for any program or service the State forces local governments to provide (State-mandated programs). If the State fails to provide that funding, then the legislature must repeal these mandates. The measure allows the State to borrow local government revenues if funds are needed in a fiscal emergency to support schools or other state programs.

If approved, Proposition 1A will constitutionally prevent the State legislature from taking local government funds to pay for State responsibilities. This measure will thereby help protect funding for essential local services like fire and paramedic response, law enforcement, emergency and trauma care, parks, roads, libraries, transportation and more.

The authors of Proposition 1A state that it will not raise tax rates or fees; it will not reduce funding for schools or any other state programs or services; it does not increase funding to local governments; and it leaves the door open to future reforms of the state-local fiscal relationship.

Visit Redwood City’s award-winning website at www.redwoodcity.org for information about the City and its services, the community, recreation programs, education, and City government.

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Contact:
Malcolm Smith
Public Communications Manager
650-780-7305

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