Ukiah Daily Journal

Legislators approve rural grants

Thursday, July 11, 2005

The Daily Journal

SACRAMENTO -- State legislators on Thursday approved a budget deal that includes $500,000 for law enforcement grants for rural counties and early repayment of a $1.2 billion loan to cities and counties.

Berg, D-Eureka, is a member of the Assembly Rural Caucus and has fought for law enforcement funding every year since she was elected. The $18.5 million budget item provides $500,000 for each of the 37 counties with large rural areas.

"Every program is in danger when the state faces a budget deficit," Berg said. "So I'm very happy that we have once again kept the faith with the people who live in rural areas."

In 2003, then Gov. Gray Davis sought to eliminate the rural public safety grants as a part of his plan to close a $38 billion deficit.

Berg and fellow Rural Caucus members insisted that the money was restored and last year, Gov. Arnold Schwarzenegger offered a budget plan that would have also stripped rural counties of law enforcement funding.

"This is money for basic, bread-and-butter public safety services," Berg said. "We need to do everything we can to ensure that people in rural areas, whether in Humboldt, Lake, Mendocino, Trinity or Del Norte counties, have good law enforcement to protect them."

Budget Loan Repayment

Another budget item was also approved to deliver $1.8 million to Mendocino County, $1.25 million to Lake County, $2.6 million to Humboldt County. $576,000 to Del Norte County, $273,000 to Trinity County and $9.7 million to Sonoma County.

"There weren't very many bright spots in this budget, but this was one of them," Berg said.

At issue is $1.2 billion, known in budget terms as the Vehicle License Fee Backfill, which was withheld from cities and counties in the summer of 2003 as part of efforts to close a $38 billion budget deficit.

In 2003, cities and counties were receiving about $ billion of state funds annually to compensate for local revenue that was lost when lawmakers reduced the car tax. The state withheld payment for nearly four months and the $1.2 billion included in this year's budget is to repay the debt.

Cities within each county will also receive a cash infusion as a part of the budget item.

The debt was due to be repaid in the 2006-2007 fiscal year, but legislative leaders agreed to speed up the repayment process and return all of the money ahead of time in the current fiscal year.

"When I came into office, the state was facing a $38 billion deficit, and everyone has had to help shoulder that burden," Berg said. "Cities and counties have certainly had to do their share, and now we're able to repay them for a significant sacrifice."

Berg had hoped to deliver more money for schools and health care, but voted for this year's $117 billion spending plan as, "the best that could be done in the current fiscal climate."

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