As Election Day draws increasingly near, it’s now the final push to get Proposition 22 passed this November, and local government officials have united this campaign season under the motto “Fight Back” to encourage voter support against state raids. The Local Taxpayer, Public Safety and Transportation Protection Act, which would block the state from taking, borrowing or diverting local government revenues, has proven to be all the more imperative in light of the economic downturn, as state raids of local funds have exacerbated the plight of cities and counties along with the decrease in sales and property tax revenues. All of which has resulted in severe cutbacks for cash-strapped local governments across the state when it comes to local police, fire, parks, libraries, street and road repair. Taxable sales have dropped significantly due to the recession and with fewer homes being built, new property tax revenue has diminished for cities. At a recent press conference, Lieutenant Governor Abel Maldonado noted the importance of keeping local funds local, stating “Sacramento, do your job, balance your books and leave local government alone.”
According to a report released by the National League of Cities, as it currently stands, cities have made their deepest cuts in at least a quarter of a century. The fiscal health of local governments is apparent in the stat that 87% of city finance officers said their cities were worse off financially this year than last year. Just last month alone, government agencies in California shed 37,300 workers, which is reportedly the biggest payroll cutback for cities and counties since at least 1990. And experts and officials contend that even more cuts are ahead for the Golden State. The LA Times reports:
“Cities across the state have taken stringent measures to balance their budgets, said Eva Spiegel, a spokeswoman with the League of California Cities. Oakland laid off 80 police officers and delayed pothole repairs. Fullerton laid off 14 police officers and three firefighters, cut library hours and closed restrooms at several parks. Oceanside laid off 28 police officers and three firefighters, closed a swimming pool and a recreation center and eliminated the city Bookmobile. ‘Decreasing sales tax revenues and decreasing property tax revenues mean that a lot of cities have had to do some belt tightening,’ Spiegel said.”
While critics of the initiative have dismissed it as another case of “budgeting by ballot box,” supporters have pointed out that such fiscal reform is needed specifically because trust in state government’s fiscal prudence has been eroded. We recently featured a guest piece at CityNews from San Pablo Council Member Leonard McNeil, who succinctly wrote that “Opponents to Prop 22 ignore the impending disaster for major community revitalization projects in California, are blind to the undermining of future borrowing ability because redevelopment agencies would forever be vulnerable to state legislative actions, and turn a deaf ear to blight continuing unabated, driving down property values on top of the mortgage foreclosure crisis. The state legislature has made fiscal decisions that erode voter confidence in state government and undermined the relationship between levels of government. There are myriad ways to effectively address the state budget crisis. However, taking funds that are legally obligated to local government cannot be included as a viable and responsible alternative.”
For more on Proposition 22, see here.
(Cross-posted at CaliforniaPropositions.org)