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Library Bond Bill to be Amended
TO: CLA Members/ Systems/ Network Contacts
FROM: Mike Dillon, CLA Lobbyist and Christina Dillon, CLA Lobbyist
RE: News From the Capitol
I. LIBRARY BOND BILL TO BE AMENDED TO INCLUDE PRIORITY FUNDING FOR "THIRD CYCLE APPLICANTS"
SB 156 by Senator Joe Simitian is a $4 billion library construction and renovation bond measure that is sponsored by the California Library Association. The measure recently passed the Senate Education Committee, and is currently awaiting a hearing in the Senate Appropriations Committee, scheduled for Monday, May 21.
CLA lobbyists and the CLA "Bond Task Force," Chaired by CLA Legislative Chair, Melinda Cervantes, have been actively engaging in strategy discussions over the last month with Senator Simitian and his staff. Specifically, the Senator has been approached by several legislators who are arguing that SB 156 should contain a set-aside or priority funding for the so-called "Third Cycle Applicants" who did not receive funding during the 2000 construction bond grant awards. These legislators include a key Republican who strongly supported the past library bonds, and a new Democrat legislator who indicated it would be difficult for him to support the bill without the set-aside for "Third Cycle" projects. Senator Simitian has weighed the issue, and, with the concurrence of the CLA Task Force, a determination was made to craft amendments for SB 156 that will assist eligible libraries from the 2000 bond. Specifically, the bill will be amended to:
- Include a $500 million set-aside to grant priority funding to viable and eligible Third Cycle "Outstanding" and "Very Good" projects that were not funded in 2000.
- Include language that will lift the state match cap from $20 million to $30 million to allow for inflation adjustments.
- Include an opportunity for library projects to recalculate their original application to allow for cost inflators, but the adjustments shall "not affect a change in the scope, scale, or quality of the project."
- The 2000 bond regulations would govern the administration of these funds.
- Any additional funds contained in the bond would be awarded on a competitive basis under new regulations developed by the Bond Board.
The CLA Task Force, as well as the Senator, felt that there were two other large issues that needed to be addressed in amendments, in addition to the above language. Amendments being incorporated into the bill will now give authority to the Bond Board to withdraw a grant award for noncompliance and award the grant to another applicant library jurisdiction. Lastly, the bill will also be amended to change the date of the ballot that the bond will appear on, from the 2008 Primary Election to the 2008 November Election.
II. GOVERNOR WILL RELEASE "MAY REVISION" OF BUDGET NEXT WEEK: FORECAST IS GLOOMY?
Governor Arnold Schwarzenegger is set to release the so-called "May Revision" of the Budget on Monday or Tuesday of next week. The "May Revise" is the annual document prepared by the Governor, his Administration, and Department of Finance, which makes adjustments to the Governor's January Budget. The document may revise revenue adjustments upward, downward, propose new projects, and even suggest that existing programs be cut.
This year's May Revise is much anticipated due to the fact that the legislature had received early warnings that tax receipts were coming in slower and lower than in previous years. A great deal of that slowdown in revenue is being attributed to the ever-declining housing market. However, on May 1, the San Francisco Chronicle reported that "surprisingly robust collections of personal income taxes [in April] have brightened the state's budget picture by $1.3 billion - easing concerns over a big shortfall next year." Assembly Budget Chair, John Laird offered, "The choice was between a difficult or an extremely difficult budget, and I think we've probably dodged the bullet this time." However, the rumblings out of the Governor's Administration are not as rosy, and it is rumored that the Governor may be proposing sizeable cuts when the May Revise is released. Sources say that that Governor continues to be concerned about the housing market slump, as well as certain revenue assumptions that he made in his January Budget that have yet to materialize.
We will keep you posted as developments surface regarding the May Revise.
Posted on May 11, 2007 3:06 PM | Permalink