R-9868
F:\ATTY\MUNI\LAWS\JL\balanced budget res.doc
City Council Meeting June 24, 2003
Santa Monica, California
RESOLUTION NUMBER9868 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
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
1930s 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; and
1
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 budget could imperil local services; and
WHEREAS, the boards of directors of the League of California Cities, California
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, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY RESOLVE AS FOLLOWS
SECTION 1. The City Council urges the State Legislature to follow the balanced
budget principles set forth below when adopting the State Budget:
. Spendinq Cuts. Reduce the current estimated deficit through state spending
reductions, minimizing federal fund loss where possible.
. Short-term Borrowinq. Because of the amount of partisan gridlock, finance part of
the budget deficit over a period of up to 5 years through the issuance of short-
2
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,
. 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.
.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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MARSHA JONE MOUTRIE
City Attorney
~
Adopted ., appicwed ~ 24th day Pr June, 2e03.
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby
certify that the foregoing Resolution No. 9868 (CCS) was duly adopted at a
meeting of the Santa Monica City Council held on the 24th day of June, 2003, by
the following vote:
Ayes: Council members: O'Connor, Holbrook, Genser, Katz, Feinstein,
Mayor Pro T em McKeown
Noes: Council members: None
Abstain: Council members: None
Absent: Council members: Mayor Bloom
ATTEST:
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Maria M. Stewart, ity Clerk