CC Resolution No. 03-133 RESOLUTION NO. 03-133
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTI~NO
URGI1NG THE CALIFORNIA LEGISTLATURE 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
WHERAS, 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 Califomia 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
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, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CUPERTINO, CALIFORNIA, that the following balanced budget principles be supported in
the upcoming budget process:
· Spending Cuts. Reduce 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.
Resolution No. 03-133 Page
· 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.
Multi-Year spending 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 at a regular meeting of the City Council of the City of
Cupertino this 7th day of July 2003, by the following vote:
Vote
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
Chang, James, Kwok, Sandoval, Lowenthal
None
None
None
ATTEST:
City Clerk