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League Participates in Capitol Weekly, University of California Conference on Redevelopment

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League Participates in Capitol Weekly, University of California Conference on Redevelopment Mar. 25, 2011 Issue #31 IN THIS ISSUE: Page 3: League Officers Advocate for California City Priorities in Washington, D.C. Page 4: Senate Select Committee Meets to Review Lessons from Japanese Earthquake and Tsunami Who is the City Attorney’s Client? LEAGUE PARTICIPATES IN CAPITOL WEEKLY, UNIVERSITY OF CALIFORNIA CONFERENCE ON REDEVELOPMENT In an effort to keep the public engaged in the redevelopment debate, League Executive Director Chris McKenzie and Riverside Mayor Ron Loveridge participated in one of two panels at the Capitol Weekly and University of California sponsored conference on redevelopment Thursday in Sacramento. For more, see Page 2. GOVERNOR SIGNS GAS TAX SWAP CLEAN-UP BILL Prop. 42 Maintenance of Effort Requirements Clarified On Thursday, Gov. Jerry Brown signed AB 105, the transportation trailer bill that included the Gas Tax Swap clean-up. Without this bill, revenues from the “new” Highway Users Tax Account (HUTA) would have been in jeopardy beginning in November 2011. For more, see Page 3. REGISTRATION NOW OPEN FOR PROPOSITION 26 UPDATE WEBINAR Register By April 1 The League of California Cities will host a webinar on Wednesday, April 6, from 9 – 10:30 a.m. to update city attorneys and local officials on Proposition 26. When it passed in November 2010, the measure created the latest chapter in the continuing effort to limit local government’s ability to raise revenue without first going to the voters for approval. For more, see Page 3. ‘Redevelopment’ Continued from Page 1… Panel one included moderator Anthony York, Los Angeles Times political reporter, Assembly Member Chris Norby, Steve Shea, budget advisor to Sen. Darrell Steinberg, Julie Spezia, Housing California executive director, and Mike Madrid, owner, Madrid & Associates. Panel two, in addition to McKenzie and Loveridge, featured Carroll Wills, communications director, California Professional Firefighters, and Marianne O’Malley, director of general governments, Legislative Analyst’s Office with moderator John Myers, KQED Sacramento bureau chief. The first panel debated the merits on redevelopment which included references to “The Mermaid Bar” (Dive Bar) in downtown Sacramento, which has been repeatedly mischaracterized as a frivolous example of redevelopment, despite the fact that it wasn’t a redevelopment project. When asked about the prospect of eliminating redevelopment now but then recreating it in some new form in the future, Madrid resoundingly responded, “If we’re going to take something down and then rebuild, then we should first look across the street,” referring to the State Capitol. Proposition 22 was noted several times throughout both panel discussions, with specific reference to whether or not the initiative only further complicated the budget process. During the second panel, in response, McKenzie noted that it was an “intentional complication” aimed at stopping the state from raiding redevelopment funds for the third consecutive year and was approved by an overwhelming majority of voters. “We saw this coming,” he said. Loveridge, speaking as the only elected official on the panel, provided insight into the reality of redevelopment at the local level. He reminded the audience that the core function of a city is as an engine of economic prosperity which funds the core services cities provide. “It makes no sense to me to take away the tool cities have to create economic prosperity,” said the Riverside mayor “If there is no money in the treasury, then you can’t pay for core services.” The mayor emphasized that redevelopment is much more than the luring of big business as many opponents contend. He pointed out that in Riverside the abolishment of redevelopment would mean the end of a new childcare center. At the end of the discussion, McKenzie illustrated the varied response of California cities and redevelopment agencies when he drew the analogy that the Governor’s redevelopment proposal was synonymous to pointing a gun at the head of cities. “They have a right to defend themselves,” he said. The California Redevelopment Association (CRA) has been working diligently to defend cities and redevelopment agencies. They have offered the Administration an alternative proposal, which provides significant funding to schools, avoids the unconstitutional provisions of the Governor's proposal, and continues local redevelopment's contributions to reviving the state's economy and supporting hundreds of thousands of jobs. The League board of directors voted last week to support the proposal (http://www.cacities.org/index.jsp?zone=locc&previewStory=28439) and has been working with CRA and other coalition partners (http://www.protectourlocaleconomy.com/sites/default/files/REDEV%20Coalition%20List%203.18. 11.pdf) to help the proposal gain traction in the Legislature. While Thursday’s conference served to reiterate the League’s position on elimination, it also opened the discussion on reform and illustrated the extreme complexity of the debate. As this redevelopment debate continues in the Legislature, and in the public sphere, the League will continue to report on this issue. _____________________________________________________________________________ 2 ‘Gas Tax Swap’ Continued from Page 1… As city officials will remember, the Legislature and Gov. Arnold Schwarzenegger approved a Gas Tax Swap in March 2010 that exempted gasoline from sales tax, and increased the gas excise tax, or HUTA. The swap had no net effect on the amount of city HUTA revenues, but did allow the state some flexibility in using HUTA revenues to pay state bond debt service. However, with the passage of Propositions 22 and 26, some clean-up legislation was required to re-enact the Gas Tax Swap and allow the state to use weight fees rather than the excise tax to pay for transportation-related bond debt service. The legislation also contains provisions clarifying that the new HUTA funds are not subject to the requirements and restrictions applicable to the former Prop. 42 funds, including maintenance of effort requirements. _____________________________________________________________________________ ‘Prop. 26’ Continued from Page 1… The League’s City Attorneys’ Department is sponsoring the webinar to educate cities on questions of interpretation and application. Municipal finance law experts, Betsy Strauss, special counsel to the League of California Cities and Mark Mandell, Esq., of Mandell Municipal Consulting, will lead the webinar. Registrants will be able to participate from any location with phone and internet access. Advanced registration is required. The cost is $50 and the registration deadline is April 1. The League is a State Bar-certified minimum continuing legal education (MCLE) provider. This webinar is approved for 1.5 hours of MCLE credit. Those requesting MCLE credits must register as an individual. For more information and to register online, please see the League’s event calendar at www.cacities.org/events. _____________________________________________________________________________ League Officers Advocate for California City Priorities in Washington, D.C. The League’s officers and over a hundred other California city officials traveled to Washington, D.C. last week for the National League of Cities (NLC) Congressional City Conference. Focusing on NLC’s priorities, California city officials advocated for the passage of a comprehensive transportation reauthorization, sustained funding for critical grant programs, and protection of existing local revenues. The conference, held March 12-16, covered a range of topics including lobbying strategies, public safety, transportation reauthorization, and disaster response. On Thursday, March 17, attendees heard from First Lady Michelle Obama on her Let’s Move! nationwide initiative and the link between obesity issues and economic issues. The League’s officers, President Jim Ridenour, First Vice President Mike Kasperzak, Second Vice President Bill Bogaard and Immediate Past President Judy Mitchell, lobbied heavily for California’s cities’ federal priorities. Meetings included: Sen. Barbara Boxer (D-Calif.) chair, Senate Environment and Public Works Committee; Congressman David Dreier (R-Calif.) ranking member, House Rules Committee; Chris Thompson, chief of staff to Sen. Dianne Feinstein (D–Calif.); Katie Wheeler Mathews and Brian Turner, deputy directors, Gov. Jerry Brown’s Washington office; and Meetings with the U.S. Department of Housing and Urban Development, U.S. Department of Transportation officials and others. The League’s federal priorities are posted on the website at www.cacities.org/federalpriorities. _____________________________________________________________________________ 3 Senate Select Committee Meets to Review Lessons from Japanese Earthquake and Tsunami The Senate Select Committee on Earthquake and Disaster Preparedness, Response and Recovery convened on Monday, holding the first in a series of hearings to review the lessons learned for California from the Japanese earthquake and tsunami. In the lengthy review of current and potential threats of seismic activity in the state and response capabilities, the California Emergency Management Agency acting Secretary Mike Dayton commended his colleagues and local agencies for their response and on-going preparedness levels. Panelists included representatives from the U.S. Geological Survey, American Red Cross, Department of Public Health, Natural Resources Agency, PG&E, Southern California Edison, and the California Energy Commission. Select Committee
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