Thursday, July 07, 2005
By The Times-Standard
SACRAMENTO -- The compromise budget that state lawmakers approved this week included a repayment to cities and counties totaling $1.2 billion.
The money is repaying the state's use of vehicle license fees.
For Humboldt County, that translates to $2.6 million; for Del Norte County, it's $576,000. Cities in those counties will also receive money under the repayment plan.
"There weren't very many bright spots on this budget," said Assemblywoman Patty Berg, a Eureka Democrat. "But this was one of them."
The license fee backfill was withheld from cities and counties in the summer of 2003 as part of an effort to close a $38 billion state budget deficit.
The debt was due to be repaid in the 2006-2007 fiscal year, but legislative leaders instead agreed to speed up the repayment and return all of the money ahead of time.
"When I came into office, the state was facing a $38 billion deficit, and everyone has had to help shoulder that burden," Berg said in a press release. "Cities and counties have certainly had to do their share, and now we're able to repay them for a significant sacrifice."
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