2008-085-The Borrowing Of Seizing Of Local Government Redevelopment And Transportation Funds To Finance State OperationsRESOLUTION 2008-085
A RESOLUTION OF THE TOWN OF LOS GATOS OPPOSING THE BORROWING
OR SEIZING OF LOCAL GOVERNMENT, REDEVELOPMENT, AND
TRANSPORTATION FUNDS TO FINANCE STATE OPERATIONS
WHEREAS, in 2004 by an 84% margin of approval, California voters approved
Proposition 1 A to prohibit the use of local government funds by the State government to finance
its budget; and
WHEREAS, in 2006 by a 77% margin of approval, California voters also approved
Proposition lA, which provides similar protections to transportation funding for state and local
transportation projects, including important street maintenance and public transit programs; and
WHEREAS, the Proposition lA ballot measures allow the State to borrow local
govermment funds in the event of a "severe state of fiscal hardship," which must be repaid in
three years with interest; and
WHEREAS, on July 1, 2008 the California State Legislature failed to meet its
constitutional budget deadline; and
WHEREAS, the state legislature is considering enacting the Proposition lA provision
which allows the State to borrow or seizing local government, redevelopment, and transportation
fiends to balance the State budget; and
WHEREAS, the Governor and the Legislative Budget Conference Committee
recommended a balanced budget that does not rely on "borrowed" local government property
tax, redevelopment tax increment and transportation sales tax funds; and
WHEREAS, borrowing local government, redevelopment, and transportation funds
would further deepen the State's existing structural deficit and jeopardize local government and
public safety services, transportation projects, community revitalization programs, and
infrastructure maintenance.
NOW, THEREFORE, BE IT RESOLVED that the Los Gatos Town Council hereby
opposes the borrowing or seizing of local tax funds, redevelopment tax increment and
transportation sales tax funds by the state government to finance state operations.
BE IT FURTHER RESOLVED that the Town Manager is hereby directed to send this
resolution to the Government and State Legislators.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 4t~' day of August, 2008 by the following vote;
COUNCIL MEMBERS:
AYES: Steve Glickman, Diane McNutt, Joe Pirzynski, Milce Wasserman, and Mayor
Barbara Spector
NAYS;
ABSENT:
ABSTAIN;
ATTEST;
CLE I I~ THE TOWI`~1 OF LOS GATOS
LOS GATOS, CALIFORNIA
,baQ `fp ~.'
R C9~~T- OWN OF LOS GATOS
~1TOS, CALIFORNIA