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HomeMy WebLinkAbout12/19/03 B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM December 19, 2003 TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager SUBJECT: General Information 1. With the Governor's action on the VLF this week, we got the first positive news we have had in awhile! Both Senator Florez and Assembly Member Parra placed conference calls to city managers on Thursday afternoon. In response to the Governor's action to appropriate $2.65M to resume the VLF backfill payments, both said they are in favor of convening a special session to discuss and, hopefully to ratify, the funding proposal as soon as possible - no later than December 31st. They have both indicated they would communicate to their fellow legislators immediately to encourage a special session. However, there appears to be a considerable difference of opinion among the State representatives as to the Governor's authority to circumvent the Legislature, so it is too soon to know if this latest development will actually result in a reliable restoration of our VLF revenues, or if it will get hung up in legal maneuverings. The latest news articles on the Governor's actions and the reaction from various legislators are enclosed. 2. As for our internal budget planning efforts, the following will be the case for the next week or two, as we wait to see if injunctions are filed or not, a special session is called, etc. a) My memo of December 10th, which imposed the hiring freeze, cuts in part- time/temporary positions, travel, and overtime reductions remains in effect. b) The departments and my office are to continue to complete the work included in analyzing service cut reductions for a department head meeting to take place on December 30th. We hope this will now, largely, be an academic exercise, but the work needs to be completed. We still face the loss of over $3.8 million, due to the lag time in the State's implementation of the higher vehicle license fees earlier this year. They have "borrowed" that money from. us, and nothing the Governor has done has restored that yet. Honorable Mayor and City Council December 19, 2003 Page 2 Finally, at least a few of the ideas generated by staff in our process are good and should be implemented anyway. c) We will continue to monitor the situation and adapt as necessary. 3. Our positive first quarter sales tax distribution took a bit of a nosedive for the second quarter, going down very closely to the budget projection number. It is just at over 4% growth for the first six months of the year. 4. As you may have known, 5,000 people showed up on the opening day of Ice Sports. Jim Foss reports to me that he has had to add temporary help, because the phones are so busy. 5. I am pleased to report that the Assistance League and Olmscheid/Sivers Development group have reached an agreement, in principle, on the sale of their current buildings, and they are working diligently to complete the legal papers. Assuming that they are successful in that regard, appropriate documents to facilitate the proposed improvements between N and P/Q Streets, namely, the theater complex and retail, will appear on the Agency and Council agenda in' January. There is no cost to the City in those development agreements. Some land and a joint parking agreement will bring in a large amount of both General Fund and southeast area tax increment money only. The people coming to the complex will also be a huge break for McMurtrey and Ice Sports - as a reminder to those going to the theater about their existence, benefit from overflow, and the dynamic of a larger complex. There are still some steps to go, and it's been long delayed, so time will tell. Improvements west of N and east of P/Q are in future phases and are not a part of this action. 6. Jim Burke Ford held a ribbon cutting on Thursday to celebrate the completion of' the repairs to their property caused by the Carrier Canal failure. We are extremely appreciative of their cooperation and patience while the necessary construction work was being done at their business and the surrounding area. 7. A status report on the White Lane/Highway 99 bridge widening project is enclosed from Public Works. 8. Greater Bakersfield Legal Assistance has filed a restraining order attempting to prevent the closure of International Square. The City Attorney's office will deal with it. 9. Per a request from Councilmember Carson, Public Works staff investigated the feasibility of installing lighting between T and P Streets. Their report is attached. AT:m cc: Department Heads Pam McCarthy, City Clerk Trudy Slater, Administrative Analyst 12/18/03 THU 14:14 FAX 661 395 1349 BKFLD FIRE A._DIIIN_.._ ~]001 ..... _ ............. .., ~_..t.~5.-~ Press Release OFFICE OF THE GOVERNOR .,._____.--..-------'-- 12/18,r&005 Governor Provides I?..rnediate Funding For Counties, Cit, es 12118103 SACRAMENTO Governor ArnOld Schwa~e~egger today e~r~lsed hi; executive branch power to ensure that scheduled p~yment9 wilt be made to =itles and c~unties- "t w~s eleGt~d by the people or.ts state ~o lead; since the Legjslelfiue lemdemhlp refuses to eat. I will act without them," said Governor $ct~war'zeneg§er- "We must protect ~he pegple tn ~is state and glve the dues and coontle8 the money we owe them-' ' - · -~- annoonced his decielo~ ~o invoke mid- ! of $ speo~c appmpri~on item Into . ,-- -,...-..~- ~3mvernor n~r~ ~,u,v,,.~ .~__......,,n,~-t neam ~ou ,,,,,.v The section another categDry. Schwarzeneggm pmvicte funds to local governments, The Governor also announced that th~ Oe~ment Of Rnence has Ittfotmed him that revenue receipts end projections through the end af this fiscal year Wilt be $I.8 billion hlgher then anticipated, as ents t~ere today Jus~ bus administration: "l Support. local govem~ Governor, "1 had the respor~u-,~z This action upholds ~ ..... ~'~d is a copy of FIr~an~e ~_imctor Arduin'$ letter tO the Leg[s|ature flo1~lng them nclodln fire et'Id police $?Wl~eS. ,~L~<,-,~ , ' g ....... ~nvoklng the euthOrlMes under Se~On sp?BV._SessionlD-'C'~(~(~03'" 12/18/2003 httP:tlwww'g°v~v°r'ca'g°vls~elE°vsilelgOv-hllrtlpfi~o ....... ,,,,,,, ~na~v ~o~¥1~aS-a°J~ ;d;O:;0 Los Angeles Times: Cities, Counties Regain Billions; Gov.'s Aide to Cut Education Page 1 of 3 http://www.latimes.com/news/local/la-me-budget 19decl 9,1,1991365.story?coil=la-home-headlines TItE STATE Cities, Counties Regain Billions; Gov.'s Aide to Cut Education By Evan Halper, Jeffrey L. Rabin and Nancy Vogel · Times Staff Writers December 19, 2003 SACRAMENTO -- Gov. Arnold Schwarzenegger on Thursday went around the Legislature by issuing an executive order authorizing the restoration of billions of dollars that local governments lost when he cut the vehicle license fee last month. At a news conference where he was flanked by dozens of enthusiastic local government officials, the governor announced that he was invoking an obscure budget law to make the payments directly out of state coffers without legislative consent. And he criticized lawmakers for recessing for the holidays without taking action to restore the payments. "Even though time is running out for local governments and they are stranded with no money, our Legislature has left town," he said. Since the legislative leadership had not acted, he said, "I am acting without them." The governor also announced that his finance director, Donna Arduin, would use expanded power given to her in this year's budget to make $150 million in cuts to higher education and other programs on her own authority. Those cuts will not go far toward offsetting the $2.65 billion in car tax revenue that cities and counties counted on for x public safety and other programs until Schwarzenegger rolled back a fee increase enacted by former Gov. GraY Davis. But the governor proposed that the sum be made up by combining some of the $1.9 billion in midyear cuts that he had already requested with a windfall of $1.8 billion in accounting changes and projected revenue that the state expects to receive by June as a result of improvement in the economy. The proposed cuts face resistance, however, within the Legislature, which is dominated by Democrats. And even if Democrats were to vote for them, they would do little to help Schwarzenegger resolve a projected deficit for next year that will grow from $10 billion to $14 billion as a result of the continuing car tax loss. While Schwarzenegger portrayed his action as another sign that he was restoring fiscal responsibility to state government, the state's credit standing suffered yet another major downgrade Thursday. Fitch Ratings, which advises investors on public and private financing issues, downgraded the state's credit three notches to BBB. The move now puts California just above junk bond status with all three of the major bond-rating houses. Earlier downgrades by Standard & Poor's and Moody's Investors Service added $55 million to the price of short-term loans that the state has secured to remain solvent through June, officials said. http://www.latimes.com/news/local/la-me-budget 19dec 19,1,4064608,print.story?coll=la-home-headlines 12/19/20031 Los Angeles Times: Cities, Counties Regain Billions; Gov.'s Aide to Cut Education Page 2 of 3 Democrats quickly warned that the governor's action -- called a deficiency request in legislative parlance -- may be illegal, and that it is irresponsible of him to order the payments without a plan to bring the budget into balance. "Is it an appropriate issue for a 'deficiency'? People really doubt that," said Senate President Pro Tem John L. Burton (D- San Francisco). Burton suggested that lawmakers might call officials from every city and county to testify before the Legislature about why they are in dire need of the funds. "The question would be, if it's a deficiency, the Legislature still has to vote on it, which means they still have to come to us and they will explain each and every locale that's in peril if they want to get this money," he said. Schwarzenegger said lawmakers had left him with no choice but to make the move. He argued that the car tax hike enacted in October had to be reversed because it was illegal, and local governments should not suffer because of that. To authorize the restoration payments, the governor invoked a provision of budget law that allows him to order emergency appropriation for cost overruns in critical government services. Past governors have generally reserved that approach for unanticipated growth in the prison population or health-care rolls. But Schwarzenegger argued the $2.65 billion that local governments stand to lose this year as a result of his car tax cut also constitutes an emergency that must be dealt with immediately. State Treasurer Phil Angelides, a Democrat, called the governor irresponsible for obligating the state for billions of dollars more in payments without a plan for balancing the budget. "To say I'm going to take $2.7 billion in a state that is already $14 billion underwater is disingenuous," Angelides said. "The money will come from somewhere. He just isn't telling the people where it is going to come from." The governOr refused to discuss how he would deal with the rest of the deficit. "This is really not a press conference about my budget," he said. "The budget will come out Jan. 10 and we will have plenty of time to talk about it and argue with legislators." The governor is constitutionally required to present the next year's budget by Jan. 10. · Through the day, Democrats endeavored to understand the legal implications of the governor's move. Some argued that he does not have the authority to appropriate money without them. Schwarzenegger said he was on firm legal ground. He said administration lawyers and the controller's lawyers had looked at the law "and it was very clear I have the power to do that." The governor was indeed given a boost by state Controller Steve Westly, a Democrat, who broke with party ranks to support the payments. Only days ago, officials in Westly's office said Schwarzenegger could not make the payments by executive order. But soon after administration officials shared their plan with the media on Wednesday evening, Westly's office · announced its support. The controller was the lone Democratic state official to stand with the governor at the news conference. http://www.latimes.com/news/local/la-me-budget 19dec 19,1,4064608,print.story?coll=la-home-headlines 12/19/2003 ~ Los Angel'~s Times: Cities, Counties Regain Billions; Gov.'s Aide to Cut Education Page 3 of 3 "The Legislature has given the governor the legal authority to do this, and my office will issue the payments," he said. Local officials applauded Schwarzenegger's move. Los Angeles Mayor James K. Hahn, who had harsh words for the governor over the potential loss of car tax payments only a week ago, praised the governor. "We haven't seen this kind of bold leadership in Sacramento for a long, long time," he said. Oakland Mayor Jerry Brown, a former Democratic governor, also lavished praise upon Schwarzenegger. The $150 million in cuts that Schwarzenegger announced will affect a wide range of programs, from social services to higher education. California State University officials said Thursday that they would reduce enrollment during the coming year by 4,000 students as a result of $23.7 million in midyear spending cuts announced by Schwarzenegger. The retrenchment will cut enrollment from 409,000 to about 405,000 students. CSU officials said that they would begin the cutbacks immediately and that most of the system's 23 campuses are likely to shut offnew admissions for the spring term. University of California programs will be cut by $29.9 million, including a reduction of $12.2 million for outreach efforts. At the same time, Schwarzenegger reversed himself on cuts to the developmentally disabled that his administration had earlier proposed -- and which brought thousands of protesters to the Capitol. The governor called that proposal."a mistake on my part." Times staff writer Carl Ingram contributed to this report. Ifl~u want other stories on this topic, search the Archives at latimes.com/archives. Click here for article licensing and reprint options Copyright 2003 Los Angeles Times htt~ ://www.latimes.com/news/local/la-me-budget 19dec 19,1,4064608,print. story?coil=la-home-headlines 12/19/2003 The Sacramento Bee -- sacbee.com -- Funds authorized for cities, counties Page 1 of 3 [teal feHea hcare.com The reso~lrce for to~y~ health care professiort~l ~ This story is taken from .C:.a!iforni~ at sacbee.com. Funds authorized for cities, counties Governor invokes emergency powers By Aurelio Rojas -- Bee Staff Writer - (Published December 19~ 2003) Blaming the Legislature for refusing to act, Gov. Arnold Schwarzenegger invoked his emergency powers Thursday to authorize payments to cities and counties to replace money they stood to lose from his repeal of the vehicle license fee increase. Flanked by local law enforcement and fire officials, who had warned of service cuts, the governor used new authority granted him by the Legislature to make $150 million in spending cuts and redirected the money to local governments. The remainder of the $2.7 billion for the VLF shortfall over the current budget year will require legislative action. The cuts Schwarzenegger unveiled at a Capitol news conference come largely from programs that serve the poor. But the governor scuttled plans to suspend a guarantee of services to developmentally disabled people -- administration proposals that prompted public protest. "It was just one of the things that slip through when you make decisions very quickly," Schwarzenegger said of the proposed cuts, which included capping enrollment in programs funded through the state's pioneering Lanterman Disabilities Services Act. Schwarzenegger sponsored legislation to repay cities and counties for the lost VLF revenue. But Democrats, who control the Legislature, were unwilling to make $1.9 billion in cuts the administration proposed during the recently completed emergency budget session. "I was elected by the people of this state to lead," Schwarzenegger said. "Since the legislative leadership refuses to act, I will act without them." Assembly Speaker-elect Fabian Nufiez said the Republican governor worsened the state budget crisis by repealing the VLF increase without specifying how the cities and counties would make up the lost revenue. Nufiez, D-Los Angeles, charged that to keep a campaign promise, the governor proposed "a lot of draconian cuts" that required more deliberation by the Legislature. The governor also announced state revenues are rising, with the Department of Finance reporting $1.8 billion in unanticipated receipts and projections through the end of the fiscal year. But because the state is now facing a $14 billion deficit, Nu~ez said cuts alone will not balance the budget. Schwarzenegger has said he does not intend to raise taxes, but Nufiez said the governor needs "to find new sources of revenue." "I think it's shortsighted for anybody to think that you can invoke emergency powers and then suddenly .and magically everything is going to get resolved," said Nufiez, who is scheduled to succeed Assemblyman Herb Wesson, D-Culver City, as speaker in February. http://www.sacbee.com/content/politics/ca/v-print/story/7977817p-8914634c.html 12/19/2003 The Sacramento Bee -- sacbee.com -- Funds authorized for cities, counties Page 2 of 3 k~0~.al officials warned that without state funds to replace the VLF revenue, they would have to reduce law enforcement as well as fire and other essential services. "If this would have happened, it is my firm belief that there would have been a tremendous layoff of public service employees throughout California," said Modoc County Sheriff Bruce Mix, president of the state sheriffs' association. He was among three dozen local officials who joined Schwarzenegger at the news conference. Oakland Mayor Jerry Brown praised the governor for upholding "the finest tradition of the executive branch" and using his "executive power to the max." "That's the only way you get anything done around here," said Brown, a former Democratic governor. But state Senate President Pro Tem John Burton, D-San Francisco, accused local officials of exaggerating the threat to police and fire protection. "Congratulations to them," Burton said, adding local officials could have cut other programs or bureaucrats before police and firefighters. "They ran up a bluff and the administration folded its cards." Burton warned the state "is going broke" and said local officials should blame Schwarzenegger for exacerbating the crisis by repealing the vehicle-tax hike. "If they are up crying for money and people want the service, put it on the ballot," he said, noting cities and counties have the authority to put a half-cent sales tax before voters. Schwarzenegger's budget cuts include redirecting $41 million in federal funds from the CalWORKS welfare program to offset state costs in the In-Home Supportive Service program. Mike Herald, legislative advocate for the Western Center on Law and Poverty, said the program is "incredibly important" for the poor. "What alarms me is that we're beginning this process of using federal welfare dollars for state programs," Herald said. "We're pitting one group against another group of needy folks." Other cuts include redirecting money in unspent Cai Grant funds, closing a migrant farm worker housing center in Blythe and reducing funding for the state Department of Motor Vehicles. State Treasurer Phil Angelides, a Democrat who has been a vocal opponent of the governor's fiscal policies, called his action "another step in the wrong direction." "! just urge the governor to do the right thing and end this sort of serial Ponzi scheme," Angelides said. Wall Street was also unimpressed. On Thursday, Fitch Ratings lowered the state's bond rating to near junk bond status -- the second rating agency to make the downgrade in the past month. Schwarzenegger predicted the ratings will rebound when his policies are fully implemented. "They will change their minds very soon, but it's too soon yet," he said. "i'm not concerned about that."' About the Writer The Bee's Aurelio Rojas can be reached at (916) 326-5539 or arojas@sacbee.com. Bee staff writers Dale Kasler and Ed Fletcher contributed to this report. http ://www. sacbee, com/content/politics/caYv-print/story/7977817p-8914634c.html 12/19/2003 Be Sacramento Bee -- sacbee.com -- Funds authorized for cities, counties Page l of 3 RealUfeHeaithcare. com The resource for ~day~ heal~ care professiona ~ This story is taken from .~a!_!.fo_rn_l_a~ at sacbee.com. Funds authorized for cities, counties Governor invokes emergency powers By Aurelio Rojas -- Bee Staff Writer - (Published December 2003) Blaming the Legislature for refusing to act, Gov. Arnold Schwarzenegger invoked his emergency powers Thursday to authorize payments to cities and counties to replace money they stood to lose from his repeal of the vehicle license fee increase. Flanked by local law enforcement and fire officials, who had warned of service cuts, the governor used new authority granted him by the Legislature to make $150 million in spending cuts and redirected the money to local governments. The remainder of the $2.7 billion for the VLF shortfall over the current budget year will require legislative action. The cuts Schwarzenegger unveiled at a Capitol news conference come largely from programs that serve the poor. But-the governor scuttled plans to suspend a guarantee of services to developmentally disabled people -- administration proposals that prompted public protest. "It was just one of the things that slip through when you make decisions very quickly," Schwarzenegger said of the proposed cuts, which included capping enrollment in programs funded through the state's pioneering Lanterman Disabilities Services Act. Schwarzenegger sponsored legislation to repay cities and counties for the lost VLF revenue. But Democrats, who control the Legislature, were unwilling to make $1.9 billion in cuts the administration proposed during the recently completed emergency budget session. "! was elected by the people of this state to lead," Schwarzenegger said. "Since the legislative leadership refuses to act, I will act without them." Assembly Speaker-elect Fabian Nufiez said the Republican governor worsened the state budget crisls by repealing the VLF increase without specifying how the cities and counties would make up the lost revenue. Nufiez, D-Los Angeles, charged that to keep a campaign promise, the governor proposed "a lot of draconian cuts" that required more deliberation by the-Legislature. The governor also announced state revenues are rising, with the Department of Finance reporting $1.8 billion in unanticipated receipts and projections through the end of the fiscal year. But because the state Is now facing a $14 billion deficit, Nufiez said cuts alone will not balance the budget. Schwarzenegger has said he does not intend to raise taxes, but Nufiez said the governor needs "to find new sources of revenue." "! think it's shortsighted for anybody to think that you can invoke emergency powers and then suddenly .and magically everything is going to get resolved," said Nufiez, who is scheduled to succeed Assemblyman Herb Wesson, D-Culver City, as speaker in February. http://www.sacbee, com/content/politics/ca/v-print/story/7977817p-8914634c.html 12/19/2003 ~2he S~icramento Bee -- sacbee.com -- Funds authorized for cities, counties Page 2 of 3 Eocal officials warned that without state funds to replace the VI.F. revenue, they would have to reduce law enforcement as well as fire and other essential services. "If this would have happened, it is my firm belief that there would have been a tremendous layoff of public service employees throughout California," said Modoc County Sheriff Bruce Mix, president of the state sheriffs' association. He was among three dozen local officials who Joined Schwarzenegger at the news conference. Oakland Mayor Jerry Brown praised the governor for. upholding "the finest tradition of the executive branch" and using his "executive power to the max." "That's the only way you get anything done around here," said Brown, a former Democratic governor. But state Senate President Pro Tern John Burton, D-San Francisco, accused local officials of exaggerating the threat to police and fire protection. "Congratulations to them," Burton said, adding local officials could have cut other programs or bureaucrats before police and firefighters. "They ran up a bluff and the administration folded its cards." Burton warned the state "is going broke" and said local officials should blame Schwarzenegger for exacerbating the crisis by repealing the vehicle-tax hike. "Zf they are up crying for money and people want the service, put it on the ballot," he said, noting cities and counties have the authority to put a half-cent sales tax before voters. Schwarzenegger's budget cuts include redirecting $41 million in federal funds from the CalWORKS welfare program to offset state costs in the In-Home Supportive Service program. Mike Herald, legislative advocate for the Western Center on Law and Poverty, said the program is "incredibly important" for the poor. "What alarms me is that we're beginning this process of using federal welfare dollars for state programs," Herald said. "We're pitting one group against another group of needy folks." Other cuts include redirecting money in unspent Cai Grant funds, closing a migrant farm worker housing center in 'Blythe and reducing funding for the state Department of Motor Vehicles. State Treasurer Phil Angelides, a Democrat who has been a vocal opponent of the governor's fiscal policies, called his action "another step in the wrong direction., "I Just urge the governor to do the right thing and end this sort of serial Ponzi scheme," Angelides said. Wall Street was also unimpressed. On Thursday, Fitch Ratings lowered the state's bond rating to near Junk bond status -- the second rating agency to make the downgrade in the past month. Schwarzenegger predicted the ratings will rebound when his policies are fully implemented. "They will change their minds very soon, but it's too soon yet," he said. 'Tm not concerned about that."' About the Writer The Bee's Aurelio Rojas can be reached at (916) 326-5539 or aro_iast~sacbee.com. Bee staff writers Dale Kasler and Ed Fletcher contributed to this report. http://www.sacbee.corn/content/politics/ca/v-print/story/7977817p-8914634c.html 12/19/2003 ~ Los p~eles Times: Gov. to Speed Local Funds Page 1 of 3 ~ - http://www.latimes.com/news/local/la-me-cartax 18decl 8,1,5006027.story?coil=la-home-headlines THE STATE Gov. to Speed Local Funds advortisemant Schwarzenegger says he will bypass lawmakers to replace lost car-tax revenue. But Democrats question where the money will come from. By Evan Halper, Peter Nicholas and Nancy Vogel Times Staff Writers December 18, 2003 SACRAMENTO.-- Under pressure to 'pay cities and counties the billions they stand to lose from the JJq ve$~ car-tax cut he enacted last month, Gov. Arnold Schwarzenegger thinks he has found a way to ~ circumvent the Legislature and order the payments to continue immediately, administration officials said Wednesday. ~tO [~$ e~ The governor will invoke an obscure state law that administration officials say allows his director of finance to order emergency payments for various programs when they mn over budget. The law typically has been used to fund cost overruns in the state prison system and health-care services. The administration is arguing that the money local governments could lose this year from the car-tax cut is also an emergency that must be dealt with immediately. If the tactic succeeds, the governor and Legislature would have to cut $2.65 billion from other programs by June 30 to keep the budget in balance. Schwarzenegger will propose today that the car-tax money be made up by $1.9 billion in current year cuts that his administration presented to the Legislature last month, and $1 billion in higher-than-expected tax,receipts as a result of the improving economy, aides said. Cities and counties have warned that the loss of the vehicle license fee money could result in immediate layoffs of police officers and firefighters and in station house closures, jeopardizing public safety. A dozen local governments have authorized their attorneys to file lawsuits against the state to get the money. Schwar-zenegger's policy decision was announced by a senior administration official at a news conference that had been billed as an informational briefing. Rob Stutzman, administration communications director, said his aides did not want to identify the senior official who spoke at the briefing because it was intended for background purposes only. Democrats immediately challenged the idea to make payments to local governments. http://www.latimes.com/news/local/la-me-cartaxl 8decl 8,1,1045357,print.story?coll=la_home.headlines 12/18/2003 Los Angeles Times: Gov. to Speed Local Funds Page 2 of 3 "It's of doubtful legality," said Senate President Pro Tern John Burton (D-San Francisco). "He's skating on very thin ice." The governor, Burton said, "made promises to the locals, so I guess he's trying to keep them. But when we go to appropriate $3 billion in a deficiency, I don't know where he's going to get it." Burton, the most powerful Democrat in the Legislature, said he was angry when he learned that state Finance Director Donna Arduin briefed the press on the move before discussing it with legislative leaders. "My biggest beef is the lack of courtesy," he said. "What it does, it doesn't augur well for future relationships .... The major part of this I learned from the press." Before making the tax cut, Schwarzenegger had promised that cities and counties would not lose any money through the action. But legislative leaders refused to appropriate the makeup funds without an agreement on what programs would be cut. Assemblywoman Jackie Goldberg (D-Los Angeles), who serves on the joint legislative budget committee, called the move "a very dangerous precedent and a very dangerous thing that he's dOing." Goldberg said that, typically, the committee's staff would review requests for money from departments that have mn short. "I've never heard of a governor doing anything without at least sending it to the legislative committee," Goldberg said. But officials at state Controller Steve Westly's office said they would send local governments the checks after Schwarzenegger' makes the order today. "The state has a legal obligation to continue the backfill and to ensure that local governments are kept whole," said Rick Chivaro, chief counsel to Westly. "The administration's proposal accomplishes this legal objective through the end of this fiscal year." In recent days, local officials have mounted a strong lobbying effort aimed at getting Schwarzenegger to keep his promise and to warn of the consequences. Several mayors said Wednesday that they were invited to Sacramento today to be briefed on the plan. Los Angeles Mayor James K. Hahn's office said he was coming to the capital today for a briefing from Schwarzenegger on plans for repaying the car tax money. Fresno Mayor Alan Autry said he had received no official word or invitation. But Autry, an early supporter of Schwarzenegger's campaign who had criticized the governor earlier this week for a lack of action, exulted when informed of the decision late Wednesday night. "Let me tell you something -- that's leadership," Autry said. Some Republican legislators also were pleased. "I'd say it's a pretty smooth response on a very vital issue," said Assemblyman Tim Leslie (R-Tahoe City). Administration officials say that the potential loss of revenues to local police and fire services m and the failure of the http://www.latimes.com/news/local/la-me-cartaxl 8dec 18,1,1045357,print.story?coll=la_home.headlines 12/18/2003 Los Ah~"'g'-eles Times: Gov. to Speed Local Funds Page 3 of 3 Legislature to appropriate the money m constitute a legitimate emergency, and that they are lef~ with no choice but to take action. The law defines an emergency as "conditions of disaster or extreme peril that threaten the health or safety of persons or property." Under the administration's interpretation of the law, the controller must start sending the checks to the cities and counties beginning with the next scheduled payment Dec. 26, and the Legislature has until March 1 to pass a bill with cuts in government services or tax increases to make up the $2.65 billion the move will cost the state. The governor's plan would cover payments to local governments through the end of this fiscal year. In January, he will propose a budget for fiscal year beginning July 1 that starts with a $14-billion deficit; about $4 billion of that is the full- year cost of the car tax payments. The governor also will use a new law written into the budget this year to cut various state programs by 5% on his own authority. Those cuts, which will trim'only $150 million of the cost'0fthe $2.65-billion payment the governor is ordering, are to be unveiled today. The rest of the cuts require legislative approval. Administration officials said the end result of the combined actions will be that local governments will not lose a penny of their vehicle license fee payments. Initially, projections showed the loss to local governments would be $3.6 billion this year. But a dip in car sales earlier in the year resulted in fewer vehicle license fees being paid than originally projected. On Dec. 26 local governments will receive $40 million if the administration is successful with this action. Budget analysts, meanwhile, said the governor's move could prove legally problematic. "This would certainly be unprecedented," said Jean Ross, executive director of the California Budget Project, a group that researches the effect of budget actions on low-income Californians. "I don't believe that the authorization [to make emergency payments] was intended to take care of situations of this magnitude." Times staff writer Joe Mathews contributed to this report. If~ want other stories on this topic, search the Archives at latlmes.conVarchlves. BClick here for article licensing and reprint options Copyright 2003 Los Angeles Times http://www.latimes.corn/news/local/la-me-cartax 18dec 18,1,1045357,print.story?coll=la-home-headlines 12/18/2003 Skip the lines for last minute shopping. This story is taken from Politics at sacbee.com. Rescue plan for localities Schwarzenegger proposes to bypass the.Legislature in funding cities, Counties. By 3ohn Hill -- Bee Capitol Bureau - (Published December 18~ 2003) Moving to quell a growing uproar over car tax payments to local governments, Gov. Arnold Schwarzenegger plans to announce today that he will authorize payments to cities and counties without approval by the Legislature. The governor will argue that they should be paid according to a process that allows his Department of Finance to authorize spending in excess of what is in the budget, administration sources said. That contrasts with the view of many lawmakers, who have said they must appropriate the car tax payments to local government. In a day of budget developments, administration officials also said Schwarzenegger is abandoning his controversial proposal to suspend the state's pioneering Lanterman Developmental Disabilities Services Act. As part of a package of proposed midyear budget cuts, the governor had advocated capping enrollment for such services and establishing a waiting list for new applicants. Widespread criticism of the proposal was said to have stung Schwarzenegger, who has long been a global ambassador to the Special Olympics, the sports competition for children and adults with mental retardation founded by his mother-in-law, Eunice Shriver. Schwarzenegger's action on the car tax payments would still leave it to the Legislature to approve some of the actions to make up for the unanticipated spending of $2.6 billion. But the administration plans to make at least $150 million of budget cuts on its own, using new authority the Legislature gave it in this year's budget, l~t says that the remainder can be covered with unanticipated revenues and about $2 billion of midyear budget cuts that Schwarzenegger has already proposed. "Cities and counties have made it clear that they have serious financial concerns, specifically as they pertain to public safety," an administration source said, speaking on condition of anonymity. "The Legislature did not act on a bill before it," leaving it to the governor to do it on his own. City and county officials, who were preparing for drastic budget cuts, welcomed the news, although some said they will feel moreat ease when the checks are in the mail. "It's encouraging, but ! want to see the money before ! get too excited," Sacramento Mayor Heather Fargo said. Democratic leaders said the move leaves unanswered the question of how the state will cover the $2.6 billion in local government payments, given that the Legislature has not approved the governor's midyear cuts. And they were dubious about the legality of Schwarzenegger's action. "At some point they have to go to us," said Senate President Pro Tem John Burton, D-San Francisco. "They can't print money." Burton added that the move probably was of "questionable legality." Assemblyman Darrell Steinberg, D-Sacramento, said the money will have to come from somewhere. "! would certainly be pleased for cash-strapped cities and counties," he said. "But for every dollar committed before the governor submits his .]an. 10 budget, that same dollar has to be found in additional cuts or more revenues. It's basic math." With revenues soaring in the late 1990s, the Legislature used part of the windfall to offset the 2 percent vehicle license fee, which goes to local governments for police and fire protection and a variety of other uses. Eventually, the state absorbed about two-thirds of the cost, making payments to cities and counties in lieu of the fees that would have been paid by vehicle owners. Last summer, the administration of former Gov. Gray Davis said the state's fiscal crisis made it impossible for the state to continue those payments, triggering an automatic tripling of the fee. As a candidate, Schwarzenegger hammered Davis for that action and vowed to reverse it. On his first day in office, the GOP governor did. But because the Legislature had appropriated a token $1,000 for the offsetting payments to cities and counties, lawmakers said that they would have to approve any increase. The administration, in essence, is rejecting that argument. !nstead, it views the local government payments as an unanticipated expense, much like the budget "deficiencies" that regularly occur in the prisons budget. The governor will send a letter to the Legislature notifying it of the deficiency. Normally, such a notification would have to be made 30 days before the payment was approved. But the administration will argue that this case is an emergency expenditure under state law, sources said, requiring only that the notification be made 10 days after the Department of Finance approves it. That will allow state Controller Steve Westly to make the bimonthly payments to cities and counties, starting with $40 million on Dec. 26. Over the course of the fiscal year, local governments would get the full $2.6 billion. Westly said in a statement that he supports Schwarzenegger's action and will make the payments. The law cited by the administration requires the Legislature to take action by March I on the budget deficiency created by the local government payments. The governor will make the case that the shortfall can be made up in part by unanticipated revenues -- about $1 billion from finalizing the books on earlier fiscal years and another $813 million in the current year. · !n addition, Schwarzenegger's administration is authorized to make up deficiencies by cutting line items in the budget by as much as 5 percent. That would cover $150 million right away, and perhaps more as payments continue to go out to cities and counties. Schwarzenegger is expected today to detail the cuts he believes he can make on his own authority. For the rest, sources said, the governor has outlined about $2 billion of midyear cuts. The Legislature Could approve reductions from that list or come up with its own solutions by March 1. The governor's midyear cuts, including welfare-to-work grants, therapy fOr developmentally disabled people and projects to relieve traffic congestion, have already generated controversy. "I'm not sure that satisfying cities and counties at the cost of cuts to the disabled is the best policy direction to take," said Assemblywoman Lois Wolk, D-Davis. Wolk and other Democratic lawmakers say they wanted to see a full budget picture from Schwarzenegger in his .January proposal before taking action on the local government payments. Republican legislators Called for immediate action, saying that cities and counties faced a public safety Crisis. Local governments had planned to file a lawsuit unless lawmakers acted. "This is great news," said Pat Leary, a lobbyist for the California State Association of Counties. "Obviously, this is putting action behind the words, and that's a great step forward." Senate Majority Leader Don Perata, D-Alameda, likened it to a "cowboy action" and said he suspected Schwarzenegger was "feeling the heat" from local governments. "It's an interesting and dangerous way to do business," Perata said. About the Writer The Bee's John Hill can be reached at (916) 326-5543 or jhJ![@.sa~cbee.,_com. Ed Fletcher of the Bee's Capitol'Bureau and staff writers Christina ,lewett and Cameron ,lahn contributed to this report. 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Back to Home > Thursday, Dec 18, 2003 i ~"=~.~.~i~!~. ;-?~ · Subscriber services ~ * >>Subscribe Posted on T~,, Dec. ~, Employment... 2003 State restoring local funding careerbuiider · Post a 3ob GOVERNOR PO[SED TO DEC.RE CR[SXS~ ORDER NEW CUTS · Find a 3ob By Mark Gladstone and Aaron C. Davis · Post a R&sum& Mercury News >> Automotive ... · Find a Car SACRAMENTO - Gov. Arnold Schwarzenegger plans to invoke .Sell a Car News emergency powers today to keep his promise that cities and counties ·Weekly Specials · Local News won't be financially hurt by his first act as governor, the repeal of the >> Real Estate... · San 3ose/Valley · Central Coast newly tripled vehicle license fee, administration officials said · Find a Home · Peninsula Wednesday. · Find an Apartment · Alameda County · Moving Resources · California & the West >> Local Shoppers.;. · Nation/World City and county governments stand to lose $2.6 billion by the end of · Obituaries ]une because of the repeal of the increased tax, which funds police, ·Search Classifieds · See This Week's Sales . Education fire and other basic services. The state has missed two payments so ·Online Coupons · Science & Health far, in San ]ose's case costing the city $3 million, and was about to · Place an Ad · Weird News · Special Reports suspend further payments. Featured Services: · Iraq: The Aftermath · Find a Loan · Meet Someone Classifieds The replacement money, known as backfill, would come from a · Find a Hotel · Automotive variety of sources: rising tax revenue from an improving economy, · Book Air, Car, Cruise & · Real Estate unexpected tax revenue from previous years, and budget cuts, Vacations · Employment · Personals including 5 percent reductions in such programs as transportation, Opinion health and higher education. TOOLS · Perspective >> Yellow Pages · Columnists While Schwarzenegger's finance department can make the 5 percent Discussion Boards Business >> · Financial Markets cuts unilaterally, he w___i!! n.eed approval from the~Dem0c, ratic- >> Map and Directions · Technology ~d...Le~qislatur~e to appropriate the money. Even so, the >> Mercury News · Personal Technology payments can start flowing to cities almost immediately, said the Mortgage Watch · Personal Finance officials, who spoke at a background briefing on the condition that · People and Events · Drive they not be named. Sports from the ° San Francisco 49ers The announcement came as a coalition of mayors and county ~. Mercury News · Oakland Raiders supervisors was preparing to sue Schwarzenegger to make good on · San Francisco Giants · Oakland Athletics his promise that the state reimburse them for the lost revenue. Financial Markets · Golden State Warriors Dow Jones Industrial Avg. · San 5ose Sharks ' ' Cities and counties have made it clear that the uncertainty over the ~0,~60 · ° CollegeHigh schOOlsportsSpOrtS backfill money is causing them serious financial concerns, specifically i ~0, a~0 Soccer as they pertain to public safety," one administration official said. i~~ ~o, aoo · 10,170 · Golf ' ' The Legislature did not act on a bill to provide local governments ~~~!~ ............ ~o,~o 11 1 · Motorsports with the backfill money." DdlA 10,242.37 ,~ 97A1 ° Other sports NASDAQ 1,955.14 -~ 31.81 ° Outdoors S&P 500 ~,086.28 * 11 .~0 Entertainment The action_ he?,q~L~n between Republican HPQ 22.23 ~, 0.27 · Books Schwarzenegger and the Leqisl~J~re over where t_A'.r, md-t-he-me~ey to INTC 30.80 ~- 0,63 · Celebrities pay the cities. Legislation to compensate cities and counties for the csco 24.09 * 0,60 · Comics and Games loss of revenue has been stalled in the Legislature, which won't meet 3:53 PM ET disclaimer · Dining nn~in ~lnfil n~vf ~r Market Update: Regional * Events ~ ............... ~ .... Companies o Eye ; View your port[olio o H~roscopes Senate President Pro Tem John Burton, D-San Francisco, questioned StockI,,,,,,,, J~ ~ Symbol · Movies where the money would-cO~'~om, saying th~-~bv-v-ernor is ' ' looking Quote: Lookup . I~lusic at taking money away from P~)~)r-~°ple to give a tax ~ut to peo~)le Sponsored by: , Nightlife o Performing Arts with RoHs-Royees~.-T~hat~lo~em right.' Burton suggested that . TV Schwarzenegger was overestimating the growth in revenue a~nd PHOTOS OF THE DAY . Visitors Guide po~ing the mid-year authority granted to governors in this · visual Arts year's budget?- Lifestyles o Family & Religion · Food & Wine The administration sources would not spell out the details of the cuts. . Home & Garden But under the terms of Schwarzenegger's action, lawmakers must act o Style b~y March 1. ..~.--- o Travel Newspaper Services AS a result of the action, cities and counties will receive their full · Subscribe payment of $40 million Dec. 26, not just the $19 million they had . Subscriber Services been anticipating. · Advertising :Information · Place an Ad ~ more photos · Community Relations The announcement was met with a mixed reaction from public . , · Newspapers in Education officials. · Work at the Mercury News It was welcomed by Controller Steve Westly, who would make the TODAY'S FRONT PAGE payments. ~> Click here to view it. ' ' Our police officers and firefighters must not be held hostage," Westly said in a statement. ' 'This is an appropriate but temporary Win movie passes solution. The governor and Legislature now have six months to cut Win tickets to an advance waste and solve California's fiscal crisis" until the end of the fiscal screening of "The Butterfly Effect" (.]an. :20) starring year June 30. Ashton Kutcher in San .jose. Bay Area officials reacted more cautiously. ~ Click here to win W Earlier in the day, they were preparing to sue the state, but they described the late-breaking news from Sacramento as encouraging. ' ' They cautioned that they would wait to see whether the win a ski package administration's plan would restore 100 percent of the lost car tax Enter to win a Ski/Ride before considering whether to drop their lawsuit. and Stay Weekend: 2-day N. Tahoe interchangeable lift ticket, 2 nights at ' ' Show us the money," said Santa Clara County Executive Pete Plump]ack. Or book it at Kutras. mytahoevacation.com. >~ Click here to~ Schwarzenegger's staff contacted San ]ose Mayor Eon Gonzales late win ~ Wednesday, along with other mayors from California's 10 largest cities, inviting them to Sacramento today to learn more about the ' ' proposal, said David Vossbrink, spokesman for Gonzales. Sharks Family Pack Save $31 on four hot dogs, four sodas and four ' ' There are a lot of details that we all yet need to learn," Vossbrink tickets to the Sharks vs. said. ' ' It's good to see some real commitment to keeping cities and L.A. Kings game on Friday, Dec. 26 at 7:30 counties whole and hopefully we will soon see how this proposal p.m. works." ~ Get the coupon in the South Bay, police and fire department budgets were frozen and construction on new health clinics, juvenile centers and jail improvements were suspended this week, due to the missing state payments. Schwarzenegger and the Legislature had failed in several attempts this fall to agree on a way to reimburse local governments for the lost car tax revenue. If the money does not start flowing by January, stations, police patrols, libraries and other core city The ~,~ entire fire services could be cut in the new year, local officials warn. Fxne rt City and county governments say they are entitled to the full car tax Our local experts can amount -- 2 percent of a vehicle's value -- under a 1986 voter- answer your questions approved constitutional amendment, on these subjects. >> Flooring The state has been collecting from car owners just one-third of that amount since 1998 and making up the difference with budget ~ Plastic Surgery surpluses that grew during the dot-com boom. ~ Real Estate Earlier this year, former Gov. Gray Davis declared the state could no longer afford to pay the difference. He raised the car tax back to the >> Detailed directory of all experts full 2 percent. PERSONAL OF THE DAY Democratic leaders were uncertain where Schwarzenegger was trying ~ ~ to lead them, especially without seeing the governor's entire ~~ spending plan, which he will unveil early next year. Senate Majority Leader Don Perata, D-Oakland, said the governor's action ' ' will only exacerbate the problem that he's trying to solve." Iolabunnie I~lercury News Staff Writer Ann E. I~larirnow contributed to this report. Contact IVlore about what I am looking I~lark Gladstone at rngladstone@ mercurynews, corn or (916) 325-4314. for: "He should be balanced and willing to spoil me and ~ ~ ~) ~ then discipline me when I deserve it." email this I print this I license this I reprint this ~ Browse Personals ~ill~l~,)~ Contact Us I Site Index I Archives I Place an Ad I Newspaper Subscriptions I News by Email ';:~ ,~,~: ~:".~'~'~? About The Mercury News I About the Real Cities Network I Terms of Use & Privacy Statement I About Knight ~.~l ~:'~,. ~"i~ Ridder I Copyright RECEIVED CITY MANAGE~"-' ~, ".. December 15, 2003 DOWNTOWN 2001 Oak Street Bakersfield, CA Dear Alan, 933-0i -3010 On behalf of our entire organization our very sincere thanks for responding so 661-328-3600 quickly and efficiently to the carder canal failure. Fax 327-8873 mailing address: Your public works people and your contractor, Granite Construction, performed PO BOX 2088 with great professionalism. Bakersfield, CA We are back running at full capacity and will formally celebrate the project 93303-2088 completion with a 19th St. ribbon cutting on Thursday, December 18th. AUTOMALL Hope you can be there and again our thanks for your response. 5300 Gasoline Alley Bakersfield, CA Sincerely, 93313-3213 661-837-6400 Fax 837-1380 mailing address: PO Box 40730 Alan Tandy Bakersfield, CA City Manager 93384-0730 City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 JB:ci- BAKERSFIELD PUBLIC WORKS DEPARTMENT MEMORANDUM TO: RAUL ROJAS, PUBLIC WORKS DIRECTOR I- FROM: STUART PATI'ESON, CONSTRUCTION SUPERINTENDENT ~-~'~ DATE: December 12, 2003 SUBJECT: White Lane Bridge Widening at SR99 - Project Status CONTRACT STATUS Contract Award Date: July 9, 2003 Contract Allotment: $ 5,624,075.00 . Begin Construction: September 2, 2004 Progress Pay Estimates to date: 3 Contract Completion Date: August 11, 2004 Total Amount of Estimates to date: $ 845,739.00 Contract Working Days: 240 23.75% Time Elapsed Working Days to Date: 21 15.0 % Complete (based on payments to date) Estimated Date of Completion: August 11,2004 OVERALL PROJECT STATUS The Project's critical path of construction has slipped 20 working days. The revised completion date is now September 14a. The loss of time is due to the failure to start the Bridge CIDH (Cast In Drilled Hole) piles as scheduled. This is a Contractor delay. Granite's CIDH Pile subcontractor, was committed on other projects and did not mobilize as schcclulccl. Granite Construction feels thc delay can bc alleviated through the re-sequencing of critical path stage construction activities. The, sc critical path work activities were shown to occur in a finish-to-start relationship in the baseline schedule. These activities can occur concurrently resulting in reduced or eliminated project delays incurred to date. Completed work items this month: Temporary K-rail placement on Rte 99 median and loop on-ramps for thc bridge support work. · Structure footing excavation at Bents 2 and 4. · Temporary fence installation at Smoke Tree Mobile Home Park. For the Sound wall construction. · Sound wall wading for the CIDH piles. Work items in proaress include the followinR: · Electrical - Temporary and permanent signal and lighting work at White Lane and North bound ramps. · Layout for the CIDH piles at Bent 3. · Glare screen installation on thc K-rail. Critical Construction Activities · CIDH Bridge Piles. SUMMARY Project communications continue to be open and friendly. Construction costs with changes to date are within an acceptable level for the magnitude of thc project. An estimate will bc completed upon receipt of the White Lane resurfacing revision requirements/design exception request from CalTrans. Construction Management costs continues to exceed the projected budget. However, thc gap between actual and budgeted costs has decreased. Of concern will be the Contractor's rescqucncing of work to make up lost time. This will result in multiple work activities occurring concurrently potentially resulting in the need for additional inspection. Currently the Structure work is delayed one month. If this time cannot be made up, additional time for thc structure inspector will be required. The month of December should show a significant increase in structural work activities. G:\GROUPDAT',Construction\White Ln at SR99 Widcning~auI-Updat¢ 12-12.03.DOC B A K E R S F I E L D PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM December 18, 2003 TO: ALAN TANDY, CITY MANAGER FROM: RAUL M. ROJAS, PUBLIC WORKS DIRECTOR~.._.____.~ SUBJECT: LIGHT BETWEEN "T" &"P" STREET Council Referral #654 I Councilmember Carson requested lighting be installed between "T" Street and "P" I Street to brighten the intersection and slow down traffic. After investigation, staff found street lighting is adequate between "T" and "P" along 4th street. The lighting meets city standards at the intersections of 4th and "T" and 4th and "R" and we have signals and street lights at 4th and "P". There are also street lights mid-block between "T" and "R" and "R" and "P". In addition, no warrants have been satisfied for safety lighting in this area. In addition to street lighting, a school crossing flashing beacon for the crosswalk at the intersection of R Street and 4th Street was requested. The school crosswalk is located about 615 feet from the traffic signal pedestrian crossing at P Street and 4th Street, and about 680 feet from the 4-way stop sign controlled pedestrian crossing at T Street and 4th Street. This exceeds the minimum spacing requirement of 600 feet for the flashing beacon warrant. The crossing at R Street is part of the route to school and more than 40 school pedestrians use the crossing, as required by the warrant thresholds. The critical approach speed (85th percentile) on 4th Street is 36.85 miles per hour, which meets the warrant threshold minimum speed of 35 miles per hour. The last criterion of the warrant is that the traffic volumes through the crossing area exceed 200 vehicles per hour, during the same hours the students are going to and from the school. Traffic Engineering has no data on the hourly traffic volume at this specific location. The Traffic Engineer will schedule an hourly traffic count during the school time when most students are coming to school or leaving for home. Because of the school winter break period and scheduling of available traffic engineers, the study will be performed in about 6 to 8 weeks, weather permitting. G:\GROUPDA~Referrals~003\CC Mtg 12-10\654 - GS Traffic.doc