HomeMy WebLinkAbout20838 - RESOLUTIONS - 2/20/2004 RESOLUTION NO. 20838
OF THE CITY COUNCIL OF THE CITY OF PALM '
SPRINGS, CALIFORNIA, IN SUPPORT OF
PROPOSITION 58, THE CALIFORNIA BALANCED
BUDGET ACT, WHICH WOULD REQUIRE
ENACTMENT OF A BALANCED BUDGET WHERE
GENERAL FUND EXPENDITURES DO NOT EXCEED
ESTIMATED GENERAL FUND REVENUES, TO BE
VOTED ON IN THE MARCH 2, 2004 ELECTION.
WHEREAS, the State of California is currently suffering from a severe budget deficit due
to economic downturns and poor fiscal management over the last few years resulting in
a budget with huge deficits; and
WHEREAS, the current State Constitution requires the Governor to submit a balanced
budget proposal in January of each year but does not require the enactment of a
balanced budget by the Legislature; and
WHEREAS, Proposition 58, the California Balanced Budget Act, on the March 2, 2004
ballot would amend the State Constitution to require the enactment of a balanced
budget, would establish a special reserve fund, would prohibit any future deficit bonds
from being issued, would allow the Governor to proclaim a fiscal emergency and
propose legislation to address that emergency; and
WHEREAS, failure of Proposition 58 to pass on March 2, 2004, would continue to allow '
the State to adopt unbalanced budgets, issue additional deficit financing bonds, provide
for no Reserve Fund and ongoing raids of cities and counties revenues; and
WHEREAS, cities and counties have already lost substantial revenue from the State in
previous years and are slated for additional cuts included in the Governor's proposed
budget and could be faced with the permanent loss of Vehicle License Fees should
Proposition 58 not pass; and
WHEREAS, Vehicle License Fees could be permanently reallocated to the State, which
would result in the potential loss of significant revenue to the City of Palm Springs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Springs,
California, that the City Council supports the passage of Proposition 58, The California
Balanced Budget Act on the March 2, 2004, Primary Ballot.
ADOPTED this 201h day of February, 2004.
AYES: Members Foat, McCulloch, Mills, Pougnet and Mayor Oden
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA ,
City Clerk City Mana