NEWS
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DAVIS "HANDS OFF" PROMISE HAILED
Sunnyvale, CA (01/16/02) -- Following Governor Gray Davis' promise to protect the city
share of Vehicle License Fees during tight budget times, the City of
Sunnyvale's Mayor Fred Fowler joined city officials from across the State in
praising Davis for committing to protect this vital source of city general fund
revenues.
During a keynote speech on Wednesday (12/19/01) to
city officials attending the League of California Cities Annual Conference in
Sacramento, Davis promised, "I will not balance this budget on the backs
of local government. I will fight to
see you receive funds from the vehicle license fee to provide important
services."
The Vehicle License Fee (VLF) is a major source of
general fund revenue for cities throughout the State. In light of a projected $12.4 billion State deficit, cities
throughout California are expressing concern that the State will hold back some
of the funds that help balance local budgets each year.
“This is good news for cities who are struggling to
balance budgets impacted both by increased homeland defense costs and a very
rough economy," said Long Beach Mayor Beverly O'Neill, president of the
League of California Cities.
Fowler said, "These are funds cities use to pay
for police and fire, emergency response, and other essential services.” This year, local governments are expecting
$3.7 billion in State payments from vehicle license fees. “If the dollars are reduced, the potential
loss for Sunnyvale would mean about $4.5 million a year, which would threaten
our ability to provide public safety, road maintenance, libraries, and parks
services,” said Fowler.
Until three years ago, vehicle license fees went exclusively to cities and counties to fund local programs. In 1999, the State reduced the VLF fee paid by motorists, but promised to use State funds to make up the difference. Local officials have been worried that, in light of the current deficit projections, the State would break that pledge.
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