July 2, 2004
| TO: | CLA Members/ Systems/ Network Contacts |
| FROM: | Mike Dillon, Lobbyist Christina Dillon, Lobbyist |
| RE: | NEWS FROM THE CAPITOL |
LOCAL GOVERNMENT "DEAL" IN JEOPARDY: ALTERNATE PROPOSAL BY DEMOCRATS OFFERS LITTLE PROTECTION AGAINST FUTURE RAIDS
After eight days of silence, local government representatives were called to meet with representatives from the Governor's office yesterday afternoon. What they heard was not good news. Within the last 24 hours, an alternative proposal has surfaced, generated mostly by a small group of Democrat legislators and staff, which will offer little, to no protection for local government. Specifically, constitutional protection of local government revenues, as originally envisioned, would no longer be provided. Instead, while the total amount of property taxes within each county would be protected, the Legislature, at a future time, could change the mix in how those property taxes are allocated to agencies within the county. Furthermore, it would allow the Legislature to pass a bill in each House with a two-thirds vote to borrow the money, with a so-called "promise" of full repayment in future years. The alternate measure, ACA 9, also negatively impacts cities, counties, and redevelopment agencies by not protecting them with respect to the vehicle license fee and sales tax.
The Senate was prepared to take up ACA 9, as proposed to be amended, before noon today, until Senator Brulte, the former Republican Minority Leader rose to inquire when the body "might have the chance to vote on the Governor's original plan. We never had a chance to vote on it. But I'm told it's dead. I want to know who killed it?" Senate President pro Tem bellowed from the rostrum, "I did!" and promptly called a Democratic caucus. Meanwhile, through the lunch hour, several of the groups represented in the Governor's deal met to discuss their opposition to the new proposal and strategize about how to defeat the measure. We have been engaged in the discussions surrounding the special district component of the deal. The exemption for independent special district libraries and so-called "orphan libraries" remains part of the package. It should be noted that the alternative plan would also require a 10% property tax contribution from dependent special districts, so the protection we put in place exempting libraries becomes even more valuable in retrospect.
High level discussions will likely continue throughout the day as the local government piece is all that remains in order for the Budget deal to be resolved. In the meantime, legislators are being bombarded with calls, faxes, and e-mails from cities, counties, and special districts. At 2:30 today Senator Burton announced that the Senate would likely adjourn until 4 p.m. on Monday or come back in on Tuesday to deal with the Budget bill, depending upon negotiations. He then announced that ACA 9 would be heard in the Senate Constitutional Amendments Committee today at 3 p.m. We will keep you posted as details develop.