HomeMy WebLinkAbout9/17/2008 - STAFF REPORTS - 5.G. RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, 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% margin of approval the voters of California approved
Proposition 1A 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% margin of approval the voters of California also approved
Proposition 1A, 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 declare a "severe state of fiscal
hardship" and "borrow" these funds if they are repaid in three years 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 hardship" 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
Item No. 5 . V •
Resolution No.
Page 2
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 for 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 Palm Springs 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 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.
ADOPTED THIS 177H DAY OF SEPTEMBER, 2008.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
Resolution No.
Page 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California