HomeMy WebLinkAboutReso 146-08 State Budget Borrow Funds
RESOLUTION NO. 146 - 08
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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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, eighty four percent (84%) ofthe voters in California approved Proposition
1A 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, seventy seven percent (77%) of the voters in California approved another
Proposition lA, 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 carryout 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
WHEREAS, the Legislature should balance the State budget with State revenue and respect the
overwhelming support of voters for not using local property taxes, redevelopment tax increment and
transportation sales tax funds to fund 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
Reso No. 146-08, Adopted 8/5/08, Item 5.1
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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 - by balancing the State budget with State funds.
NOW, THEREFORE, BE IT RESOLVED that the City of Dublin 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.
BE IT FURTHER RESOLVED, that the Mayor is authorize 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
legislator's steadfast opposition to further borrowing or seizure of these funds.
PASSED, APPROVED AND ADOPTED this 5th day of August, 2008, by the following vote:
AYES: Councilmembers Hildenbrand, Oravetz, Sbranti, and Scholz and Mayor Lockhart
NOES: None
ABSENT: None
ABSTAIN: None
ATTEl]
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City Clerk
Reso No. 146-08, Adopted 8/5/08, Item 5.1
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