HomeMy WebLinkAboutAgenda Statement 1983/08/16 Item 17 COUNCIL AGENDA STATEMENT
Item 17
Meeting Date 8/16/83
:M TITLE: Resolution 435-/ - In opposition to subsidization of State Government operations
at the expense of local services and programs
EMITTED BY: City Manager /1 (4/5ths Vote: Yes No X )
ECOMMENDATION: Adopt resolution recommending to the Governor, members of the State
Legislature, and the City's local legislative delegation that:
1 . the State Legislature take action to suspend the AB 8 deflator
for the remainder of FY 1983-84, effective October 1 , 1983;
2. restore the $617 million in subvention cuts that normally would
be directed to the cities; and
3. oppose a proposed local option sales tax.
\CKGROUND AND DISCUSSION
you are aware, the State has adopted a budget in which the AB 8 deflator would come
tto effect on October 1 , 1983, placing the City in the position of reverse bail-out. The
ity would be forced to subsidize State operations at the expense of vital local services
id programs. If the State budget remains as it is currently approved, the City's 1983-84
idget would have nearly $1 ,000,000 less revenue than originally projected, basically
trough the reduction after October 1st of certain State subventions, such as motor vehicle
t lieu, cigarette and business inventory taxes .
appears the cities and counties have become pawns in a partisan fight between the State
!gislature and the Governor. Some members of the majority party leadership of the Legis-
tture have recommended a local option sales tax to make up for local government's lost
tbventions . The problem with this is that the cities and counties would be forced to increase
to sales tax and take the heat for the fact that the State can't balance its budget.
to other problem s the le that the
uniformtsalessatax throughout years,
a system evert to a systete m wher
try from region to region and from town to town.
the other hand, the Governor cut legislative programs to the tune of %17,000,000, which
tuld be used to restore the cities subvention cuts if modification to the State budget
!re enacted by the State Legislature. This certainly would be the preferable action, but,
this point, there is a stand-off between the Legislature and the Governor, with
tcal government caught in the middle.
a meeting Tuesday, August 9, at the City of San Diego City Hall , 13 of the County's
i cities, including Chula Vista, were represented by their Mayors, or Vice Mayors, at
Lich time they signed a letter to the
for�edrtorsubsidize Legislature
operationsnatttherebpense
tat local governments should not be
that
' vital local service programs. e increasedmStatezexxpendituressbeyond thel,cgurrent
is totally a inappropriate to finance
es
idget by drastically reducing city and county subventions and instituting g a localnsaletions:
tx. The letter concluded, "To this end, we strongly urge you
1 . Suspend the AB 8 deflator for the remainder of FY 1983-84, effective October 1 ,
and restore the $600 million in subvention cuts.
m A-113 (Rev. 11/79)
Page 2, Item 17
Meeting Date 8/16/83
2. Oppose the local option sales tax.
abscribed August 9, 1983. "
its represented only the individual views of the oMaiors and icenea involv
iseduin this
eting. The purpose of this report and
)r this position by the Chula Vista City Council .
Legislature this
andsthetlocalslegeslativetdelel be
of
•ansmitted to the Governor and members
Ition in order to demonstrate the opposition of local government to the action that has
yen taken and may be taken by the State.
[SCAL IMPACT
ie State budget, as presently adopted, would mean a loss of nearly $1 million in revenue
its fiscal year to the City.
)G:mab
47/2-t441-t'L-4.-
by the City Counc,11 of
, rnia
China Vista, CU Eii��/J
Dated
7A I