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LCF officials: 'Here we go again'

January 10, 2004

Robert Chacon

Incensed La Canada Flintridge City Council members will travel to

Sacramento on Sunday to talk to legislators about Gov. Arnold

Schwarzenegger's proposed budget.

Part of Schwarzenegger's $99.1-billion budget proposal, which he

announced Friday, is a shift of $1.3 billion in property taxes from

local governments to pay state expenses.

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Councilmen David Spence and Anthony Portantino, Mayor Stephen Del

Guercio and City Manager Mark Alexander will be in Sacramento through

Wednesday attending the annual California Contract Cities Assn. state

legislative tour, during which officials from cities that contract

for municipal services get face time with state legislators.

"We will deliver the message that cutting from local governments

will be funneled from critical services, and this is not fair,"

Spence said.

City officials were surprised that the governor proposed taking

money from cities after recently ordering the state to restore

roughly $4 billion in vehicle-license fees that were lost when he

rescinded the tripling of the car tax. The rescission was his first

action as governor shortly after taking office in November.

"The feeling we get is pretty much, 'Here we go again,' "

Alexander said. "The state is trying to deal with its fiscal crisis

on the backs of local governments."

The city does not know how much of the 7% it gets in property

taxes paid by the city's residents will be stripped. For its 2003-04

fiscal year, the city estimated it will receive $1.6 million from the

property taxes.

"There is still a lot of work to be done to find out about the

direct consequences of the governor's budget," management analyst Ann

Wilson said.

Money from property taxes goes into the city's general fund, which

pays for Los Angeles County Sheriff and Fire department contracts,

sewers and street improvements. The city budgeted $17.3 million for its 2003-04 general fund.

During several meetings with legislators next week, officials will

ask them to consider alternatives to siphoning money away from city

coffers.

Legislators need to consider shaving away layers of a top-heavy

state bureaucracy instead, Spence said.

"The state could save millions of dollars by contracting out for

many of its services and forcing private enterprises to compete for

its business instead of maintaining expensive departments," he said.

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