Group files initiative to block state from borrowing local funds

Sacramento Bee Capitol Alert, 10/20/09

A coalition of representatives for local governments and the transportation and public transit sectors has submitted an initiative to the Attorney General's office that seeks to block the state from borrowing or redirecting local government funds.
The proposed initiative, the "Local Taxpayer, Public Safety, and
Transportation Protection Act of 2010," would ban the state from taking, borrowing or redirecting gas tax and Highway User Tax (HUTA) funds, other public transit funds and funding used for public safety and emergency response services.
The July budget revision included a plan to borrow $2 billion from local governments, with the stipulation that the funds would be paid back with interest by 2013. A proposal to shift about $1 billion in local gas tax revenue for state use was rejected by the Assembly in the final hours of the July budget vote-a-thon.
Proponents of the proposed initiative slammed lawmakers for using "loopholes in the law" and "legally questionable tactics" to secure the funds.
"These raids are having a significant and negative impact on the vital services that all Californians rely upon, including layoffs of local police and firefighters, delayed 911 emergency response times, and cuts to health care, parks, libraries, public transit and road safety maintenance and community improvements," League of California Cities Executive Director Chris McKenzie said in a statement.
The coalition has asked the Attorney General to prepare a title and summary for two similar initiatives. If the group decides to go forward with gathering signatures to qualify the measure for the 2010 ballot, it will choose one of the two measures, according to a press release.
In related news, a redevelopment group filed a lawsuit today to block the state's plan to shift $2.05 billion from local redevelopment funds over the next two years. The Bee's Loretta Kalb has the scoop on the lawsuit here.