City of Stockton News Release

Connie Cochran
Public Information Officer

(209) 937-8827
connie.cochran@ci.stockton.ca.us

FOR IMMEDIATE RELEASE : Tuesday, May 19, 2009

Council Resolution Opposes State Seizure of Local Property Taxes

(Stockton, CA)  - The Stockton City Council took emergency action this evening to place a Resolution on the agenda that opposes the State of California plan to seize local property taxes. The Resolution passed unanimously, 7 – 0.

“We have already severely reduced programs and services, implemented furloughs, provided early retirement, eliminated positions, and issued layoff notices to dozens of employees, including 55 police officers, “said Mayor Johnston. “Such action by the state would more severely impact our budget, and we already have a $30 million deficit coming into the 2009-2010 fiscal year.”

The City of Stockton has lost $88 million in property tax to the state since the early 1990s and $9.9 million in redevelopment funds in fiscal year 2007-2008. In 2004, voters chose to protect local revenues through the passage of Proposition 1A. On May 5, the state announced that they would borrow from cities, counties and special districts to balance the state budget, in addition to imposing or considering other unfunded mandates.

The City of Stockton is currently experiencing a budget crisis, which has impacted vital services, such as public safety. Property tax is large component of the City’s General Fund budget. The state’s proposal would reduce City revenues by an approximately $5 million per year, until it is paid back. A loss of this magnitude would further erode essential services, including police fire, parks, libraries and street and tree maintenance.

The City Council opposes the borrowing or seizure of local funds, property tax, redevelopment funds, and Proposition 42 transportation sales tax, urging the state to suspend any such action until the economy improves, passing a Resolution to formalize opposition. The Resolution states that, should the state “borrow” $2 billion in local property taxes, the City of Stockton would experience severe fiscal hardship.

For additional information and a copy of the Resolution, please visit www.stocktongov.com, or, call (209) 937-8459.
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