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Friends of the Fourth
District:
On behalf of the Board of Supervisors for the County of Los Angeles,
I would like to announce our support of the compromise local
agreement negotiated by the Governor, legislative leaders and
representatives of local government. With this new agreement,
California's counties, cities and special districts will now have
the long-term fiscal protection that they need while allowing the
State to borrow revenues from local governments in times of fiscal
crisis.
In order for this budget to be an effective long term solution, we
encourage voters to approve a constitutional amendment that will
provide fiscal flexibility for the State in times of crisis, while
assuring revenue stability for local governments and protecting
essential services. If the amendment is approved by voters in
November, the State will be able to borrow revenues from local
governments during fiscal emergencies with a two-thirds vote of the
Legislature and the Governor's signature. Borrowing can only take
place twice during a ten year period and the second loan will only
be issued after the first is repaid.
The purpose of the budget solution is to create a fiscal partnership
between State and local governments. That partnership is exemplified
in the willingness of local governments to contribute $1.3 billion
of local revenue to the State's budget solution over the next two
years in recognition of our fiscal interdependence.
In return for their contribution, local governments simply seek
formal recognition of this interdependence and the assurance that in
the future, when similar assistance is required during a State
budget crisis, it will not be undertaken lightly and local
governments will be assured of repayment as State finances improve.
Since the budget has been a crisis in California for so long, we are
excited an agreement has been reached. After the last 30 years of
uncertainty, local governments can be assured of stable revenue in
order to plan effectively for future budgets. With this joint
solution we can ensure that California will never reach such a
fiscal crisis and local governments will be protected at all times
in the future.
Should you have any questions about this, or any other issue, please
feel free to contact my office at
(213) 974–4444.
DON KNABE
Supervisor, Fourth District
County of Los Angeles
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