Governor's State Budget Proposal

Governor Brown released his budget proposal for the State for Fiscal Year 2011 - 12 on January 10th.  The proposal contains a wide range of spending reductions that realignments that will impact many of the services of all levels of government.

Of particular note to the city, and most cities statewide, is the proposal to "disestablish" redevelopment agencies.  Such agencies were established after the voters approved a constitutional amendment in 1952 allowing tax increment funds to be utilized to fund redevelopment projects and pledged for repayment of bonds.

The Sebastopol Community Development Agency (CDA) is considered a redevelopment agency under state law and would thus be "disestablished" should the Governor's proposal be eventually approved by the voters.  The purpose of redevelopment agency is to allow a greater amount of property tax dollars remain at the local level to be reinvested in identified redevelopment areas.  City staff provided a report entitled CDA 101 in January of 2010 which you can read here.

The CDA receives approximately $2,000,000 annually in tax increment revenue.  Projects that have been undertaken or funded by the CDA are the police headquarters, downtown plaza, Petaluma Avenue Homes, Sequoia Village, Hollyhock, various facade improvements to numerous businesses and other projects.

There is much in the Governor's budget proposal that citizens will have concerns with and I suggest that you take some time and give it a thorough review.  While the process is only beginning, the state has, for many years, avoided making the tough decisions it needs to make to get its fiscal house in order.  Fundamentally, from my perspective as a City Manager, they should do so without drastically impacting the way in which cities have been funded, managed and delivered services, however, as a realist when it comes these things, unfortunately, such a desire has always been unrealistic.

As details emerge on how some of the Governor's proposals would actually be implemented, staff will prepare more formal reports for the City Council's consideration.