CC Resolution 10199
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RESOLUTION NO. 10199
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
URGING THE CALIFORNIA LEGISLATURE TO USE A BALANCED APPROACH IN
ADOPTING THE STATE BUDGET
WHEREAS, the State of California is facing the worst budget crisis since the 1930's
Great Depression, threatening the ability of state and local government to deliver essential
services and threatening the long-term fiscal health of state and local government; and
WHEREAS, counties and cities are in the midst of approving their own operating and
capital budgets for the 2003-04 fiscal year and cannot adequately make decisions about the
funding of local government services until the state budget is finalized; and
WHEREAS, the State of California is facing a $38 billion deficit, and dramatic measures
must be taken to reduce spending and protect state and local services; and
WHEREAS, the city and county officials of California understand the interdependence
of the fiscal condition of state government and local government;
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WHEREAS, the financial condition of the State of California is so serious that it is
incumbent upon state leaders to both cut spending and enact temporary increases in revenues
to avoid making future generations of Californians pay for the budget deficit; and
WHEREAS, local officials have already taken measures to reduce local spending, but
the failure to adopt a balanced State budget could imperil local services; and
WHEREAS, the boards of directors of the League of California Cities, State Association
of Counties, and California Special Districts Association have endorsed a set of principles
calling for a balanced approach to managing the state budget deficit.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Campbell
that the following balanced budget principles be supported in the upcoming budget process:
. Spendina Cuts. Reduge the current estimated deficit through state spending
reductions, minimizing federal fund loss where possible.
. Short-Term Borrowing. Finance part of the budget deficit over a period of up to 5
years through the issuance of short-term debt instruments, secured by temporary taxes
that are dedicated solely to retiring the short-term debt.
. Revenues for Deficit Reduction. Adopt a set of tax increases dedicated solely to
retiring the short-term debt and the remaining structural deficit.
. Reserve. Require a prudent reserve that could be accessed during economic shortfalls.
. VLF Covenant. Keep the VLF covenant made to local governments by activating the
VLF trigger or continuing the state General Fund revenue backfill.
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Resolution - State Budget
July 2003
Page 2
. Local Government Reductions. Limit the local government share of overall budget
reductions to a one-time amount not to exceed the proportion of state subventions to
local governments as a percentage of the state general fund budget.
. Multi-Year SpendinQ Limitations. Limit the growth in State spending during the
repayment of the short-term debt. Expenditures would be limited to population growth,
inflation and mandated caseload increases. Available funds over the limit would be
dedicated to debt retirement.
. Local Revenue Protection. In the Constitution, prohibit the Legislature from taking
local government revenue or shifting costs to local governments unless (1) the
Governor declares a fiscal emergency, and (2) the legislature approves by a 2/3 vote,
and (3) the amount taken or shifted is fully reimbursed.
PASSED AND ADOPTED this 24th day of June 2003, by the following roll call vote:
AYES:
Councilmembers: Kennedy, Burr, Furtado
NOES:
Councilmembers: None
ABSENT:
Councilmembers: ~'Jatson, Dean
APPROVED:
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Daniel E. Furtado, Mayor
ATTEST:
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Anne Bybee, City Clerk