HomeMy WebLinkAbout2008-055 RESOLUTION NO. 2008-055
9M A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, 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 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 lA and sent a loud and unambiguous message to state leaders that they should stop
err.
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 carry out 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,
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,
ur
City of Atascadero
Resolution No.2008-055
Page 2 of 2
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 Atascadero 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
rr.r of these funds.
On motion by Council Member O'Malley and seconded by Council Member Luna, the foregoing
Resolution is hereby adopted in its entirety by the following roll call vote:
AYES: Council Members Beraud, Clay, Luna, O'Malley and Mayor Brennler
NOES: None
ABSENT: None
ADOPTED: August 12, 2008
ATTEST: CITI'Y TA CAD RO
Marcia McClure Torgerson, C.M.U. M
rennler, Mayor
City Clerk
APPROVED AST ORM:
•• Brian Pierik, City Attorney