CITIES, COUNTIES BENT ON PROTECTING REVENUES.

Byline: Troy Anderson Staff Writer

As Gov. Arnold Schwarzenegger and lawmakers get to work today on the state budget crisis, they face increasingly militant cities and counties intent on protecting their tax revenues.

Cities and counties, including Los Angeles County, are considering backing a constitutional amendment for the November 2004 ballot to prohibit the state from taking revenue away from local governments or forcing them to provide services unless the state also provides the dollars.

Los Angeles County Chief Administrative Officer David Janssen said Monday that he will decide later this week whether to recommend that the Board of Supervisors support the measure known as the ``Local Taxpayers and Public Safety Protection Act.''

After Schwarzenegger signed his first executive order Monday, repealing the car tax, Janssen said the county stands to lose $526 million in the next nine months if Schwarzenegger does not find ways to replace the lost revenues.

``I'm concerned about the Legislature because at one point, Sen. John Burton, D-San Francisco, said he wouldn't support backfilling local governments,'' Janssen said, referring to the state Senate's presiding officer. ``There are two issues: Will the Legislature support the governor? And number two, where will the money come from?

``We'll find out in the next couple of days what is going to happen. We've been holding our breath for a couple of months and now we'll see.''

Schwarzenegger delivered on his campaign promise to repeal the tripling of the car tax and said he intends to protect local governments by finding another source of funds.

If Schwarzenegger is unable to get the Legislature to agree to reimburse cities and counties for the $4.5 billion the higher car tax would have generated annually, the county supervisors will have to look at making $700 million in annual cuts in the $1.4 billion in discretionary funds they have control over.

The California Association of Counties and the California League of Cities drafted the proposed constitutional amendment that seeks to make it more difficult for the state to reduce or redirect property and sales taxes and vehicle license fees.

Troy Anderson, [phone]

troy.anderson(at)dailynews.com