Governor, cities group consider deal on budget Governor, cities group consider deal on budget (May 21, 2004)

State would take funds for two years, then no more

By Grace Rauh

After gathering more than 1.1 million signatures for a ballot initiative to protect local government revenues from the state's sticky hands, the League of California Cities agreed to a compromise deal with the governor.

Under the new plan proposed by Gov. Arnold Schwarzenegger, cities would pay the state a fixed amount over the next two years. Then it would become unconstitutional for Sacramento to siphon off local revenues without voter approval.

California city officials, including those from Mountain View, collected signatures this spring in support of a ballot initiative to safeguard local dollars from future state take-aways.

The league's original initiative, dubbed the Local Taxpayers and Public Safety Protection Act, calls for the state constitution to be amended to require voter approval before the state can touch local money. Unlike the governor's plan, the act does not provide a two-year window for the state to get its fiscal house in order.

Council member Mike Kasperzak, the city's delegate to the league, cast a vote in support of the new plan last week. The proposal calls for Mountain View to give the state roughly $2.8 million over the next two fiscal years.

"Most people are very excited that the governor was willing to talk to us. That we have been able to craft a solution, while painful for two years, really does provide the major goal that we wanted, which is considerable protection for local revenues," Kasperzak said from Sacramento.

Although the league's initiative has not experienced significant opposition from voters, it would be difficult to push through in November without the governor's support, Kasperzak said.

E-mail Grace Rauh at grauh@mv-voice.com

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