HomeMy WebLinkAboutRES NO 118-08RESOLUTION i i g -Q8
A RESOLUTION OPPOSING FISCALLY IRRESPONSIBLE STATE
BUDGET DECISIONS THAT WOULD "BORROW" LOCAL
GOVERNMENT FUNDS, THUS PLACING AN ADDITIONAL ECONOMIC
BURDEN ON LOCAL MUNICIPALITIES.
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 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 state deficits; 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 does not constitute a "severe state of fiscal hardship" and
therefore 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
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WHEREAS, it is time for the state of California to deal with the budget deficit in a
straightforward way, and balance the state budget with state funds.
NOW, THEREFORE, BE IT RESOLVED, that the City of Bakersfield 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 unwavering 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.
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
City Council of the City of Bakersfield at a regular meeting thereof held on JUL 3 0 2008 ,
by the following vote:
AYE
ES:
ABSTAIN:
ABSENT:
APPROVED JUL 3 0 2008
COUNCILMEMBER CARSON BENHAM, WEIR, COOCH, HANSON, SULLIVAN, SCRIVNER
COUNCILMEMBER YI.QkJ2..
COUNCILMEMBER_Y~Crl~lk_,
COUNCILMEMBER I~uZYv2.~
gs~. CITY CLERK and EX 10 of the
Council of the City of a ersfield
HARVEY L. HALL
MAYOR of the City of Bakersfield
APPROVED AS TO FORM:
VIRGINIA GENNARO
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By:
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City Attorney