FRA Eye on Finance Newsletter
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BALLOT MEASURE TO PROTECT VITAL SERVICES

 

 IN THIS ISSUE:

 Water Districts Deserve Strong Credit Ratings

 School Districts Can Now Go Long with the Government
 Code

 Is Now the Time for School Districts to Get Their Fix?

 Ballot Measure to Protect Vital Services

 Overview of Arbitrage

 Coming Soon from D.C.

 School G.O. Election Deadlines

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  BY JIM FABIAN, PRINCIPAL
 

On Tuesday, October 20, 2009, a coalition of local governments and advocates for transportation, business, labor and public safety filed an initiative ballot called the “Local Taxpayer, Public Safety and Transportation Protection Act” with the California Attorney General’s Office “AGO”. The coalition is working to have the ballot measure placed on the statewide ballot for November 10, 2010.

The purpose of the “Local Taxpayer, Public Safety and Transportation Protection Act” is to: 1) Close loopholes to prevent the taking of local taxpayer funds currently dedicated to cities, counties, and special districts and revoke the State’s authority to borrow local government property funds or divert local redevelopment funds. 2) Prevent State borrowing, taking or redirecting of the State sales tax on gasoline (Proposition 42 funds) and Highway User Tax (HUTA) on gasoline funds that are dedicated to transportation maintenance and improvements.

The AGO is expected to provide the coalition with the Official Title and Summary in late November 2009 and then it can proceed with the grass-root task of collecting approximately one million signatures needed to qualify the measure for the November 2010 ballot. Information about the filing of the initiative and future updates will be available at the League of California website www.cacities. org. The urgency of the initiative will become more apparent when the Governor releases his proposed FY 2010/11 budget in January with estimates of the structural deficit to $14.0 billion and the future taking of local revenues once again subject to the annual state budget
process.

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