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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO <br />RESOLUTION N0.2009-074 (1123) <br />RESOLUTION FIl~IDING A SEVERE FISCAL HARDSHIP WILL EXIST IF ADDITIONAL <br />LOCAL PROPERTY TAX FUNDS ARE SEIZED AND ADDITIONAL UNFUNDED <br />MANDATES ARE ADOPTED BY THE STATE OF CALIFORNIA <br />WHEREAS, the current economic crisis has placed cities under incredible financial <br />pressure and caused city officials to reopen already adopted budgets to make painful cuts, including <br />layoffs and furloughs of city workers, decreasing maintenance and operations of public facilities, <br />and reductions in direct services to keep spending in line with declining revenues; and <br />WHEREAS, since the early 1990s the state government of California has seized over $8.6 <br />billion of city property tax revenues statewide to fund the state budget even after deducting public <br />safety program payments to cities by the state; and <br />WHEREAS, in FY 2007-08 alone the state seized $895 million in city property taxes <br />statewide to fund the state budget after deducting public safety program payments, and an <br />additional $350 million in local redevelopment funds were seized in FY 2008-09; and <br />WHEREAS, the most significant impact of taking local property taxes has been to reduce <br />the quality of public safety services cities can provide since public safety comprises the largest part <br />of any city's general fund budget; and <br />WHEREAS, in 2004 the voters by an 84% vote margin adopted substantial constitutional <br />protections for local revenues, but the legislature can still "borrow" local property taxes to fund the <br />state budget; and <br />WHEREAS, on May 5 the Department of Finance announced it had proposed to the <br />Governor that the state "borrow" over $2 billion in local property taxes from cities, counties and <br />special districts to balance the state budget, causing deeper cuts in local public safety and other vital <br />services; and <br />WHEREAS, in the past the Governor has called such "borrowing" proposals fiscally <br />irresponsible because the state will fmd it virtually impossible to repay and it would only deepen <br />the state's structural deficit, preventing the state from balancing its budget; and <br />WHEREAS, the Legislature is currently considering hundreds of bills, many of which <br />would impose new costs on local governments that can neither be afforded nor sustained in this <br />economic climate; and <br />WHEREAS, state agencies are imposing or considering many regulations imposing <br />unfunded mandates on local governments without regard to how local agencies will be able to <br />comply with these mandates while meeting their other responsibilities; and <br />