CC Resolution No. 04-401
RESOLUTION NO. 04-401
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
SUPPORTING PROPOSITION lA, A CONSTITUTIONAL AMENDMENT TO
REQUIRE THAT LOCAL TAX FUNDS REMAIN WITH LOCAL GOVERNMENTS
WHEREAS, state government has for many years annually seized 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
\J
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, an historic agreement was reached with the Governor, the State Legislature
and the coalition of local governments; and this agreement in the current state budget approval
provides for a constitutional amendment, Proposition IA; and
WHEREAS, Proposition lA is an initiative that will prevent the State Legislature from
taking and using funds originally committed to local governments; and
WHEREAS, Proposition lA also requires the state to reimburse local governments for the
cost of programs and services it mandates cities, counties, and local governments to provide and
that if the state fails to reimburse, the mandate must be suspended; and
WHEREAS, Proposition 1 A allows for flexibility in the event of a future state emergency
to borrow local government funds, only if the Governor declares a fiscal necessity and 2/3 of the
legislature approves and that all borrowed funds be repaid with interest within 3 years;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CUPERTINO that the City Council hereby expresses its strong support for Proposition lA, a
constitutional amendment to ensure that local tax funds may not be taken, confiscated, shifted,
diverted or otherwise used to fund state government operations and responsibilities except in the
case of a future declared fiscal necessity and that any borrowed funds be repaid with interest
within three years; and
RESOLVED FURTHER, that the City Manager is hereby directed to send a copy of this
resolution to the Executive Director ofthe League of California Cities.
ItesoluÚon No. 04-401
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PASSED AND ADOPTED at a regular adjourned meeting of the City Council ofthe City
of Cupertino this 7th day of September 2004 by the following vote:
Vote
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Members Qfthe Q!y Council
Kwok, Lowenthal, Sandoval
None
James, Wang
None
Gt'Ru5~~
~~ City Clerk
APP~~
Vice-Mayor, City of Cupertino