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"pr to 41003 19;11:M Via Fax -> 9893785103 Daryl Parrish League of California Cities 1400 K Street, Suite 400 • Sacramento, California 95814 Phonw (916)658-8200 Fax: (916) 658-8240 www.cacities.om Page 081 Of 002 `-�nECE1VEQ ' ' } 2003 CITY OF COLT MAVpR-S OFFICE To Mayor and Council Members, City Managers, Officers of League Divisions, Departments, Policy Committees and Caucuses From John Russo, League President, City Attorney, Oakland Date. April 15, 2003 Subject: Strategies to Protect Local Services and Revenues Cc. Members, League Board of Directors On April 7 I sent a letter to all mayors and council members, asking that they appoint a delegate from 'heir cities to attend a special Membership Meeting in Sacramento on May 15. At that time delegates will be asked to consider one or more proposals prepared by the Board of Directors concerning the state budget and state -local fiscal reform. The purpose of this memo is to provide more information about the special membership meeting, and the additional activities the League has undertaken to achieve progress towards its goal of protecting local services and revenues, The Special Membership Meeting: A Unique Opportunity for Leadership Recent political polling by the League of California Cities and others indicates that the state's current fiscal crisis, coupled with voters' dissatisfaction with state leadership, create what could be a unique opportunity for the League to make significant progress towards its primary goal for 2003 — protection of local services and revenues from state budget cuts. Voters are highly distrustful of state leaders They want a resolution to the budget crisis. They understand and strongly support a balanced approach of cuts and revenues, particularly if those revenues are limited in term and dedicated to permanently addressing California's boom and bust budget cycle. They are also strongly supportive of pfoacting local revenues from state grabs such as the ERAF shift that continues to drain property tax revenues away from communities and into the state coffers. The League has called the special meeting because these factors provide an important opportunity to discuss a proposal to both balance the state budget and protect local revenues. Because of the natural shifting of public opinion that occurs over time, this opportunity may not be available to us in three months, six months, or in the future. The resolution that will be presented to the membership is currently being drafted. It is expected to consist of a set of principles for balancing the state budget and reforming the fiscal system. The legislature could incorporate these principles into legislation or the budget bill, and submit elements requiring constitutional amendment for voter approval at a special ballot measure election, possibly this fall.