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Runner Commends Governor

Governor’s Proposal will Equal Millions for Local Governments in the 17th Senate District

 


(SACRAMENTO) --- Senator George Runner (R-Antelope Valley) commends Governor Arnold Schwarzenegger on his decision to pay city and county governments nearly $600 million in debt the state owes them – half the amount due to them next year for vehicle license fee revenues they failed to receive two years ago.



 

“Using new one-time revenues to invest in one-time expenditures like repaying local governments is the fiscally responsible thing to do,” said Senator Runner.


 


In Governor Schwarzenegger’s May Revise he proposes an early repayment of $593.4 million to cities and counties which is approximately half of the 2003 vehicle license fee (VLF) gap loan. 


 


Runner continued, “The Governor’s proposal reduces the state’s debt while providing a real boost to local governments that can use this funding for local priorities that will improve city services and stronger communities.” 


 


In 2003-04 budget year, cities and counties did not receive VLF backfill payments for a period of time early in the year while the VLF “trigger” was pulled and before the new Schwarzenegger administration was able to reverse the Davis Administration’s decision to increase the car tax.  This became what is no referred to as the “VLF gap loan” that is required, by statute, to be repaid on August 15, 2006.  The Governor’s proposal to pay half of this obligation early gives locals a strong influx of immediate funds to allocate to local priorities that have been stalled or deferred by lack of revenue during recent years.


 


Attached is an estimated city and county breakdown of the estimated amount each will receive under the Governor’s May Revise budget proposal.


 




Senate District 17 – VLF Repayment for Cities and Counties


 


Over $5.6 million dollars for Senate District 17 cities and


nearly $130 million dollars for Senate District 17 counties.


 


Local Government Breakdown Estimates


 


Los Angeles County                                            $102,355,234


 


Lancaster                                                              $1,068,750


Palmdale                                                               $1,078,696


Santa Clarita                                                          $1,380,959


 


 


San Bernardino County                                      $18,799,682


 


Adelanto (not in SD 17)                                         $164,452


Apple Valley                                                          $415,037


Hesperia                                                               $575,217


Victorville                                                             $614,575


 


 


Ventura County                                                   $8,116,013


 


Fillmore                                                                $124,551


Santa Paula                                                           $248,450


 


 


Source: League of California Cities