HomeMy WebLinkAbout0551.000~' .... '., . . .
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October 16, 1990
THE HONORABLE CITY COUNCIL
PALO ALTO, CALIFORNIA
.bJ!olpt.loll :Bm:uessinq Opposition to state Budlget Actions 6:U'
supportlD9-~. 'Repeal of 88 2557
Members of the Council:
The state Budget for fiscal year 1990-~1 vas balanced by allowing
counties to cha~e cities for t",·o key services: booking prisoners
into county jails and collecting property taxes~ Passage of Senate
Bill 2551 shifted city revenue to cQunties in order to backfill
state funding cuts for counties.
The enactment of SB 2557 constitutes bad public policy~ The
leqis~ation emerged from the budget conference committee, having
never been considered by a policy committee in either house of t,he
Legislature. The actual language of S8 2557 was not available
until aft~h the bill was approved by the Legislature. The concept
underlying S8 2557 pits cities against counties. Counties are an
ara of the state while cities are not. Senate Bill 2557 requires
cities to finance state/county 'Programs for which they have no
authority or responsibility. It also constitutes double taxation
for city residents# who are paying again for services which are
countywide responsibilities currently financed by the county
general fund ~
The Leaque of California citi~s has laul'1.ched a lnajor statewide
effort called Operation Budget Freedom. The real answer to the
problem is finding an adequate, long-term funding source for cities
and counties and this will involve coalitions between the League
and representatives of schools, counties, and special districts ..
For the short term, the L.eague is encouraqinq a strong local
grassroots campaign to seek repeal of SB 2557 and has asked all
cities to adopt the attached resolution ~xpressin9 Council
opposition to the 5tate budget actions and supporting the repeal of
SS 2557.
CKR;S51:0
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page Two
~ge.D.4.tlon
Staff recommends that Council adopt the attached rcsulution and
direct that copies be sent to t_he Governor, Senator MClrgan,
Assemblyman Sh~rr, the League,. and the local media.
Respectrully 5ubmitted~
At.taohment
om:551:0
Resolution No.
RESOLUTlON OF THE COUNCIL OF THE CITY OF PALO ALTO
EXPRESSING OPPOSITION TO STATE BUDGET ACTIONS ~~D
SUPPORTING THE REPEAL OF S8 2557
WHEREAS, after the longest budqet stalemate in california's
his~ory~ the Governo~ and California Legislature finally enacted a
1990/91 budget pacxaqe that shifts sta.te and cO"..lnty costs to
cities, and diverts city revenues to finance stat~/county
responsibilities; and
WHEREAS.. cO\a\ties are al"'. administrative arm of thE state
with responsibilities for carrying out statp-proqra!:ls, 'While cities
are in a different business of providinq local municipal services
which are deterained locally and have no responsibility or
authority for ad.inistering state or county programs; and
WHER£AS, the Governor and California Legislature have shifted
state and county financial responsibilities to cities; and
WHE!L~, all 457 cities in California balanced their budgets
only to find their budqets were subsequently thrown out of balance
by co~t shifts and revenue losses designed to balance the Dudqet
of the state: and
WHEREAS, the. actions in the State budget p;!ckage 'Wel'e enacted
:by passage of $8 2557, 'Which (1) directed counties to charge
cities, sch.ool districts and special dist.ricts .for the county
function of administerinq the property teur; (2) authorized counties
to charge cities for booking prisoners arrested by city employees;
and (3) allowed counties to retain property tax revenues that
should otherwise go to 90 -No and Low Tax Cities·; and
WHEREAS, these. shifts of city revenues to counties ",ere
specifically enacted to replace cuts ir: state revenue for counties
that should have funded state responsibilities carried out by
count ies; and
WHEREAS~ the Governor and Califcrnia Leqislature have avoided
their financial responsibiliti~s by enacting measures that are poor
publiC' policy f which rob troll one local qovernment to finance
another, and result in no real 801u~ion to the continuing financial
probleas facing all levels of qovern~ent in California} now
THEREFORE BE IT RESOL'VE'D, that the Council of the Cit.y of Palo
Alto does hereby support the repeal of SB 2557 and the protection
of cities from the state budqet process; 3nd furthermore support
alternatives that viII provide adequate long-term fundinq for
cities and counties.
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INTRODUCED AN 0 PASSED:
AYES:
NOES:
ABSE.'IT:
ABSTENTIONS:
ATTEST: APPROVED:
city Cl.erk ----Mayor
APPROVED AS '1'0 FORM:
-City Manager
city Attorney