HomeMy WebLinkAbout2008-26 Local Gov't, Redevelopment and Transportation FundsRESOLUTION N0.2008-26
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UHIAH
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
WHEREAS, 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 n 1952 the voters
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% mazgin of approval the voters of California
approved Proposition lA 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% mazgin of approval the voters of California also
approved Proposition lA, 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 declaze a "severe state of
fiscal hardship" and "borrow" these funds if they aze repaid in three yeazs 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
WHEREAS, refusal by the Legislature to carryout its constitutional obligation to
compromise on a balanced budget is not a "severe state of fiscal hazdship" 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 down turn; and
WHEREAS, city investments in infrastructure, affordable housing and basic
public safety and other community services will create needed jobs and speed our
economic recovery; and
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 fox 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 Ukiah 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 Mayor/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.
PASSED AND ADOPTED this 6th day of August, 2008, by the following roll
call vote:
AYES: Councilmembers Thomas, McCowen, Rodin, and Mayor Crane
NOES: None
ABSTAIN: None
ABSENT: Councilmember Baldwin ~/~
_ ~ ` `t-
Douglas F. Crane, Mayor
ATTEST:
a
Anne M. Currie, Deputy City Clerk