Budget Agreement Preserves Important Partnership with Local Government; City, County Leaders Appreciate Timely, Responsible Action.

SACRAMENTO, Calif. -- The California State Association of Counties and League of California Cities Have Released the Following Statement in Response to the Budget Agreement Reached Between the Governor and Legislative Leadership.

California county and city officials expressed their appreciation to Governor Schwarzenegger and the legislative leadership today for crafting a timely, bipartisan budget agreement that preserves the critical role local government plays in the everyday lives of California's 35 million residents.

Local government leaders are especially appreciative of the Governor's efforts and legislative leadership's continuation of the important partnership with local government that began last year through the historic passage of Proposition 1A.

Proposition 1A was the local government-sponsored constitutional amendment passed by almost 84 percent of California voters last November that limited the state's ability to take or borrow local funds. Prop. 42 was passed in 2002 by 69 percent of statewide voters. It dedicated the sales tax on gasoline to transportation projects including repair and maintenance of local streets and roads.

Based upon initial information, it appears that a strenuous effort was made by state officials to protect local government services within the confines of available state funding. The League and CSAC will respond to more details of the agreement as they become available.

Greg Cox, CSAC President and San Diego County Supervisor, said, "We are especially pleased with the decision to fully fund Proposition 42 -- a strong statement on the necessity to invest in our deteriorating transportation system. More than $250 million of this funding stream is dedicated to maintaining and improving our critical local streets and roads network."

Pat Eklund, League of California Cities President and City of Novato Council Member, commended the legislative leaders and Governor for agreeing to pay off all the $1.2 billion vehicle license fee loan to counties and cities a year early.

"This is a win-win for the state and local governments," Eklund said. "It's a savings for taxpayers because it wipes this debt off the state books and it provides funds for important local services like law enforcement, firefighting and vital health services."

The decision not to reduce In-Home Support Services is also praised by county officials. This allows our IHSS workers to continue providing a valuable service that ultimately saves our counties and state money.

The League and CSAC realize that the daunting task of eliminating the state's deficit is arduous, painstaking and, at times, unpopular. We support the swift passage and signing of this budget. And, as a partner to the state in the delivery of services to all Californians, local government looks forward to continue to work with the Governor and Legislature to find a solution to our long-term fiscal challenge, while maintaining the quality of life for our citizens.