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Comprehensive Legislative Update 1-13-2012 (34 pages - 827Kb pdf document)CARPD Legislative Update Summary
- October 2011 Legislature in Interim Recess The 2011 legislative year ended at approximately 2 a.m. on September 10, with the Legislature scheduled to commence the 2012 legislative year on January 4, unless the Governor calls the Legislature back to address anticipated revenue shortfalls in the current state budget. The state budget was adopted with numerous overly optimistic revenue assumptions, including, but not limited to, $4 billion in new revenues this fiscal year and $1.7 billion from redevelopment agencies, the latter issue pending before the California Supreme Court. The California Redevelopment Association, League of California Cities and scores of individual cities have sued the state over the “taking” of $1.7 billion of redevelopment monies, arguing Proposition 22 prohibits the state from shifting any local revenues, including those from redevelopment agencies, for a “state purpose.” The Supreme Court has announced it will hear oral arguments this fall with a decision rendered on or before January 15, 2012. Should the state lose this case, add $1.7 billion to the state’s growing budget deficit. Additionally, it’s hard to find anyone in the Brown Administration or within the Legislature that believes the state will, in fact, realize $4 billion in new revenues this fiscal year. Given the state budget contains language that would require automatic and significant cuts to education and other state programs, the automatic cuts, or “triggers,” most certainly will be pulled in December or January 2012. Depending on the state’s revenues next year, the state budget requires additional “triggers” to be pulled at specified points during 2012, which has given some credibility to the rumors the Governor may call the Legislature back into session before January 4, 2012, to considered alternative to the first round of cuts should the “trigger’ be pulled in December. Stay tuned… PENSION REFORM Scores of pension “reform” measures were introduced this year, some containing modest reforms, while others were more comprehensive, including, but not limited to elimination of pension “spiking;” elimination of employees purchasing “air time;” increasing the retirement age; requiring employees to contribute more to their pension; and caps on the amount of a pension. In the final week of this year’s session, Governor Brown informed the Legislature that he will be releasing a revised list of his pension “reform” concepts and hinted that he may veto any of the pension reform bills that reach his desk, preferring to address the subject next year in “a comprehensive manner.” This caused numerous pension reform authors to place their bills on hold, making them 2-year bills and avoiding possible vetoes. Assembly Speaker Perez and Senate President Steinberg in responding to the Governor’s comments, have announced they will convene a pension reform conference committee in January and, as the Governor urged, to address the subject in a comprehensive manner instead of running numerous separate bills on the subject. Finally, in addition to legislative activity on the pension reform issue, there are a number of “reform” initiatives pending, including a number that have been cleared for circulation. Too early to determine if any will obtain the necessary signatures to qualify for next year’s ballot, or if the sponsors of these initiative have the financial ability to qualify the measures, let alone fund a ballot campaign that will certainly be strongly opposed by a coalition of labor and education interests. We will keep the CARPD membership current on the status of those initiatives that have been filed and/or qualified for the signature gathering phase of the initiative process. LEGISLATION OF INTEREST
The bills cited above represent only a small number the CARPD Legislative Committee reviewed this year. After the Governor has completed signing and voting the bills before him, I will prepare a final legislative report reflecting the final status of all 2011 bills of interest to CARPD.
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CARPD California Association of Recreation & Park Districts, P.O. Box 22671, Sacramento, CA 95822 916-446-2098 | 800-773-7275 | Fax 916-446-6095 | calrpds@aol.com © 2012 All Rights Reserved |
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