HomeMy WebLinkAbout0384.094ti .• ; , _______ '''_,~,~,
July 21, 1994
H01IOAASI,E CI'f¥ COUNCIL
Palo Alto, california
Members of the Council:
M.l!'.Qrt in Brief
This is an informational report and no Council action is :requirp.d;
Although it appears at this time th'!lt: the 1994-95 StatQ budget
signed by Gover-nor l1"ilsol) will have minimal i,,-,pact on the City,
there is reason to be concerned about .... heth(!l" the budget agrocr-,ent
reached may be lire-opened tl in November 1994. staff wi 11 continuG
to update the council on State budget dcvelopnents throuC)h the
Monthly Financial Report.
stat.~et and 1~'Fris.q@.L..~_ttl'~
The budget adopted by the Legislaturo and signed by thO Ga .... ornor
has minim'a! fiscal impact for-cities. Ho .... ever~ the Budget bill V(ts
accompanied by a t'Trigger aill." The Triqgsl' Bill (senat.Q Bill
1230)' requires that the state Controller esti~ate the cash
condition of the State General Fund as of l~ovcmber 15, 1994 and
identify any shortfall in excess o( $430 ~illion. Tho Governor Is
required to submit legislation to addL"eSS the shortfall, should it:
occur. Such legislation must be passed and signed by the GOvernor
by February 15, 1995. If the legislation is not enacted, the State
Director of Finance will reduce all General Fund appropriations by
a percentage necessary to address tho amount of the shortiall.
It appears likely that, should either become necessary, tho
Governor's proposed legislation or-the action of the Director of
Finance would have some fiscal impact for cities, especially since
sizeable appropriations (e.g. Proposition 98 9uarantees and CJen~ral
obligation debt service) are not included In the appropr-iations
subject to the percentage decrease that the Director of Finance
would be obligated to make.
CMR:384:94 1
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Staff will continue to update the Council in the
Report as to deve.lopments ill the State Budget.
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R R~e6pec f"Uy sUbmitted,
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~rector o~. ~ nance
L,.A.~
J FL (rNG V ity Manager
CMR: 384 :94 2
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Mont.hly }'inancial
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