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RESOLUTION NO. 96-2008
OPPOSING ANY ACTION BY THE STATE OF CALIFORNIA INVOLVING
"BORROWING" LOCAL GOVERNMENT, REDEVELOPMENT AND
TRANSPORTATION FUNQS TO BALANCE THE STATE BUDGET
WHEREAS, on July 1, 2008 the California 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 California voters approved Article XVI, Section 16 of the California
Constitution, providing for tax increment financing for community revitalization, and have
never authorized the legislature to take or "borrow" these local funds to balance the state
budget; and
WHEREAS, in 2004 by an 84 % margin of approval California voters approved Proposition
lA, protecting local government funds from state raids to finance the state budget and
paper over the state deficit; and
WHEREAS, in 2006 by a 77% margin of approval California voters approved Proposition
42, providing similar protections to transportation funding for state and local
transportation projects, including important street maintenance and public transit
programs; and
WHEREAS, while 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,
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 does not constitute 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/ towns are struggling to
balance their own budgets during this economic down turn; and
WHEREAS, city/town 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; now therefore be it
RESOLVED, that the Danville Town Council 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; and be it further
RESOLVED, that the Mayor 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.
APPROVED by the Danville Town Council at a special meeting on August 12,2008, by the
following vote:
AYES: Andersen, Arnerich, Doyle,
NOES: None
ABSTAINED: None
ABSENT: None
Stepper
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APPROVED AS TO FORM:
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CITY ATTORNEY 1-
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