CC Resolution No. 04-293
RESOLUTION NO. 04-293
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
SUPPORTING A STATEWIDE BALLOT INITIATIVE TO REQUIRE VOTER
APPROVAL BEFORE STATE GOVERNMENT MAY TAKE LOCAL TAX FUNDS
WHEREAS, state government annually seizes more than $5.2 billion local property tax
funds (ERAF) statewide, costing local governments more than $40 billion in lost revenues over
the past 12 years, including more than $800 million annually for cities, or $6.9 billion over the
past 12 years, thereby seriously reducing resources available for local public safety and other
services; and
WHEREAS, this drain of local resources has continued even during periods when the
state's budget has been overflowing with surpluses as well as during difficult economic times;
and
WHEREAS, the Governor's budget proposal for FY 2004-05 would increase the amount
of the ERAF property tax shift by $1.3 billion on a permanent basis, an increase of
approximately 25 percent over the current ERAF shift; and
WHEREAS, the current state budget appropriates local vehicle license fee backfill and
redevelopment property tax funds that are needed to finance critical city services such as public
safety, parks, street maintenance, housing and economic development; and
WHEREAS, the adopted FY 2003-04 state budget assumes an ongoing structural budget
deficit of at least $8 billion, and the Legislative Analyst estimates that full implementation of the
Governor's proposed budget for FY 2004-05, including passage by the voters of his $15 billion
deficit financing bond, would result in an ongoing structural deficit of $7 billion, continuing to
put city resources and services at risk in future years to additional state revenue raids; and
WHEREAS, the General Assembly of Voting Delegates of the League of California
Cities at its September 10, 2003, meeting voted to sponsor a statewide ballot initiative to
empower the voters to limit the ability of state government to confiscate local tax funds to fund
state government; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CUPERTINO that the City Council hereby expresses its strong support for the Local
Taxpayers and Public Safety Protection Act, also known as the LOCAL Initiative, a statewide
ballot initiative to allow voters to decide whether local tax funds may be taken, confiscated,
shifted, diverted or otherwise used to fund state government operations and responsibilities; and
RESOLVED FURTHER, that the residents of the City are encouraged to become well
informed on the initiative and its possible impacts on the critical local services on which they
rely; and
Resolution No. 04-29~
2
RESOLVED FURTHER, that the City Manager is hereby directed to send a copy to the
Executive Director of the League of California Cities.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 5th day of April 2004, by the following vote:
Vote
Members Qfthe Çi!y Council
AYES:
NOES:
ABSENT:
ABSTAIN:
James, Kwok, Lowenthal, Sandoval, Wang
None
None
None
ATTEST:
~r~t ~7Á
APPROVED:
a44-~47~
----Mayor, City ofC rtino