HomeMy WebLinkAboutReso 2008-152 - State Budget Decisions
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RESOLUTION NO. 2008 - 152
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING OPPOSING FISCALL YIRRESPONSIBLE STATE BUDGET
DECISIONS THAT WOULD "BORROW" LOCAL GOVERNMENT,
REDEVELOPMENT AND TRANSPORT A TION FUNDS
WHEREAS, the State Legislature has 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 oflocal 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 percent margin of approval the voters of California approved
Proposition IA 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 the state deficit; and
WHEREAS, in 2006 by a 77 percent margin of approval the voters of California also approved
Proposition 1 A, 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 offiscal 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 justiJY 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
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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 Redding 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.
I HEREBY CERTIFY that the foregoing Resolution was introduced, read, and adopted at a
regular meeting of the City Council of the City of Redding on the 19th day of August, 2008, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Bosetti, Dickerson, Jones, Murray, and Stegall
None
None
None
LOd C~
DICK DICKERSON, Council Member
ATTEST:
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FORM APPROVED:
CONNIE ST
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