Wednesday, May 20, 2009

No Local Taxes to State

[ From: "Voters Reject 5 of 6 Ballot Measures, Sending Clear Message to Legislators
Californians say no to cuts and new taxes, and the Santa Barbara City Council says no to local property taxes being moved for state use," By Lara Cooper, Noozhawk, 05.20.2009 ]

... Five out of six items on the ballot failed — statewide and in Santa Barbara County — with the exception of a measure that would prevent elected legislators and officers, including the governor, from receiving pay raises while California is running a deficit...

While voters were trickling into the polls Tuesday, the Santa Barbara City Council unanimously passed a resolution expressing its disapproval with state talks to borrow from local governments. The state is allowed to borrow local property taxes in dire financial situations, but can borrow only 8 percent of those taxes and only for three years. The amount the state would like to borrow amounts to $2.3 million, which represents about 2 percent of the city’s $107 million General Fund.

In solidarity with 120 other cities, Santa Barbara went on record agreeing with the League of California Cities, which has opposed local funds being moved for state use.

Unanimous discord was heard from all of the council members.

“Sacramento needs to wake up and do their job just like we do at the local level,” Councilman Grant House said. Borrowing without assurance of being paid back plus interest is not in the city’s best interest, he said.

Councilman Das Williams said Californians asking for no taxes and no cuts was not the answer. “We have to do one or the other,” said Williams, a 2010 Assembly candidate.

“They need to fix their own house,” Councilwoman Iya Falcone said in disagreement. “Balance your own budgets with your own money.”

Now that the items have failed, California faces a $21 billion budget gap. If the measures had passed, the deficit would have closed slightly to $15 billion.

Gov. Arnold Schwarzenegger already has been talking about myriad cuts to address the gap, including cuts to education, borrowing $2 billion from local governments, drilling for oil off the Santa Barbara coast and transferring state inmates to county prisons.

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