News

State budget plan to have big local impact

Danville to lose $3.1 million over two years

Legislators in Sacramento emerged from their weeks long discussions of California's multi-billion dollar budget shortfall with a plan to close down a $26 billion budget gap through a series of financial maneuvers and a raid on funds designated for California's cities.

At their Tuesday night meeting, Town Manager Joe Calabrigo broached the news of the budget settlement to the members of the Town Council and explained that the plan coming out of Sacramento is going to put a serious dent into the town's budget over the next two years.

Calabrigo said among the impacts on local governments are the loss of $1.7 billion from Redevelopment funds, $2.1 billion in property tax borrowing and $1 billion in transfers from local gas taxes.

Some of that money reportedly will come back to the town. The property taxes being "borrowed" are being reapportioned as allowed under Prop 1A. The proposition allows for the takeaway as long as they are paid back with interest by 2012/13.

All told, Calabrigo said he is estimating that Danville will lose $3.13 million over the next two years. "That's 12 1/2% of this year's current operating budget," he stated.

Calabrigo and town staff will be examining the data they are getting from the state and the California League of Cities in determining how solid the number coming out of Sacramento are.

"By the beginning of September, once all the deal points have been finalized, staff will be back before the council with some options for your consideration for changes to be made to the current years financial plan," he said.

He added that the town has done a good job of setting up their funds to weather the ongoing financial chaos, but with the state's economy in disarray, he is not confident that the worst is past yet.

"I don't have reason to be optimistic as I sit here before you," he said, "that this will be the last time we have this conversation as we sit here at the start of the 2009-10 budget year."

Council members expressed outrage over the state takeaways. "It's extraordinary," said Mayor Newell Arnerich. "This self inflicted mess."

Councilman Mike Doyle, a member of the League of Cities said he was in Sacramento over the weekend to discuss the budget and from speaking with other city officials he said the budget plan announced will spell doom for some of them.

"When they get this news today, alot of them are going to go bankrupt," he said. "It's a sin to allow this to happen to this wonderful state."

Comments

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Posted by Duffy
a resident of Danville
on Jul 22, 2009 at 8:05 am

This is perhaps a good opportunity to remind those on the Town Council whose political ideologies are less than Conservative that this State budget mess was created by idealistic Democrats.Don't let Danville become a microcosm of the State of California - live within your means ALWAYS!


 +   Like this comment
Posted by Rick
a resident of Danville
on Jul 22, 2009 at 8:14 am

Abso-friggin-lutely! Well put Duffy!


 +   Like this comment
Posted by Teacherman
a resident of San Ramon Valley High School
on Jul 22, 2009 at 9:25 am

Our Representatives on both sides of the aisle and Governor finally put ideologies aside and passed this dreadful budget so the wheels of California can begin turning (slowly) again. We have many tight belted years ahead of us. No doubt, the idea that California was an indefinitely growing economy which justified unprecedented Government spending over the past 10-20 years is now nothing more than a wishful thought. We can not continue to rely on the California Government to supply our intended standards of living.

That said, there things that the public do have a right to because they are the values we all share as Californians, mainly security, education, healthcare, and protecting our natural resources. Our government should continue to fund these critical securities with taxpayer money. Our police forces, urban and wildland fire departments, and border security keep our neighborhoods and roads safe and our property values stable, relative to the economic tide. Our children deserve the best. Because we ourselves have created this mess does not mean that our children have to live with our mistakes. Fund schools, teachers, and programs that teach them how to compete in a global economy and how the glory of California can be realized again with innovation, communication, and economic sustainability. Finally, our coasts, agricultural lands, mountains, and water are the body and blood of this great state. We should not sacrifice the very nature of our state for quick, uncertain economic gains.

Although this is a sad hour in Californian history, it is a chance for us to return to our core values as Californians. For 150 years California was the last great frontier with endless opportunities for economic success, spiritual renewal, and freedom of life. We should build on those values so that our children can realize the quality of this special place as we all did in our personal histories.


 +   Like this comment
Posted by Rick Pshaw
a resident of Danville
on Jul 22, 2009 at 6:11 pm

Teacherman seems to think he, and everyone else, has a right to health care. He probably is also completely in favor of the the Obama budget-busting health-care proposals. Go pick your "right to health care" off the tree you seem to think it grows on.

The rest of his post is antiquated liberal code-word twaddle. But one thing is for sure: he really wants to be certain that teachers are funded no matter what kind of economic mess we're in. Such self-centered candor is actually refreshing in a way.


 +   Like this comment
Posted by Alamo Resident
a resident of Alamo
on Jul 26, 2009 at 4:00 pm

Time to repeal Prop 13


 +   Like this comment
Posted by tracy
a resident of Danville
on Jul 27, 2009 at 9:07 am

Drill for oil!!!


 +   Like this comment
Posted by Rick
a resident of Danville
on Jul 27, 2009 at 12:33 pm

While drilling for oil might attain greater profit for us, the point is we don't want to waste more money, nor need more money to waste. Besides, in my humble opinion, drilling is shortsighted. Corporations are the only ones who gain from keeping our system petroleum based. It is a coservative notion to get rid of oil that ends up polluting our skies, so that our kids can't even play outdoors on certain days. It would be far worse if the corporate goons had their way. No, corporations are not run by true conservatives. It's they who import illegals to work for cheap, passing the illegals cost of living on to the American taxpayer. They outsource jobs and now they want to convince conservatives that drilling here is good. Yeah it's better than buying from those lunatics in the Mideast. However, solar, wind and hydrocell would be cheaper and cleaner than any oil ever could be. It would require the type of investment that we instead gave to the rat bankers and Fed who rule the world. The stimulus was not targeted enough. Like five percent of the money went to green energy development. Instead it went to propping up a multitude of flawed liberal spending programs.


 +   Like this comment
Posted by Native Daughter
a resident of Danville
on Jul 29, 2009 at 8:32 am

Rick, you are right that your opinion is humble, as it is long on jargon and short on facts. California used to be one of the largest oil producing states in the nation. We then had thousands of blue collar jobs, which funded the state coffers with income tax revenues which ably supported our public services, including schools.

With the elitist NIMBY mindset that has overrun our state, such jobs are considered beneath our dignity and are now "outsourced" to low tax, high living standard Gulf states (Texas & Florida)where all the smart Californians are outsourcing their skills and incomes.

This past year alone, over 100K manufacturing jobs left the state, resulting in lower income/sales tax revenues. If NUMMI folds, there goes another 5K middle class, blue collar (and yes, union) jobs, resulting in higher unemployment and ever declining tax revenues.

You can criticise the "greedy corporations" with all your heart, it takes jobs and money to support all the libs' pie-in-the-sky fantasies of government-based (and taxpayer subsidized) Nirvana.

Oh, and our air in the state is cleaner now than it was half a century ago when there were fewer people and cars on the road. Must be the result of the technologies developed by evil corporations.


 +   Like this comment
Posted by Rick
a resident of Danville
on Jul 29, 2009 at 12:39 pm

Dude, if you knew anything about me you'd know I'm certainly no lib. You're just plain wrong in your overall assessment. But as hardheaded as liberals can be, I found that corporatists are that much more. So I won't bother providing you a further line of reasoning


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