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April 11, 2008
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Prepare for a 'slimmer' economy
By Sylvie Belmond belmond@theacorn.com

While the county, local cities and school districts prepare to trim programs in anticipation of fiscal shortages caused by the economic downturn and predicted state budget cuts, local legislators say they're working to minimize impacts on local residents.

Overspending, fraud and unnecessary duplication of services must be purged before other measures are considered, said Assembly members Cameron Smyth (RSanta Clarita) and Audra Strickland (R-Thousand Oaks.)

Everybody is going to feel some pain this budget cycle, but vital services such as law enforcement, fire protection, foster care and school funding should be protected from cuts wherever feasible, they said.

Both Strickland and Smyth oppose tax increases to bail the state out of the anticipated $16billion budget deficit. Additional taxes would cause more hardship on families and won't solve the fiscal crisis, Strickland said.

The state budget should be handled like family finances, Strickland said. When funds are sparse, people must eradicate nonessential expenses and root out waste to maintain what's important.

Strickland recently drafted a bill that proposes to end public benefits for adult illegal immigrants. That alone could save between $5 billion and 10 billion dollars per year, she said.

The Assembly members said they're also concerned about lack of accountability. A California performance review by the governor when he came into office showed that 25 percent of the state-owned fleet of vehicles could not be located. "This means that 17,000 cars were not accounted for, and that's just a few million dollars, but if this occurred throughout the bureaucracy it's a problem that must be addressed," Strickland said.

Smyth said, "I would agree that the first step to closing our budget gap is to look at the results of the performance review and act on some of those recommendations and findings."

Releasing 22,000 prisoners early to save money also is a bad idea, said Strickland.

Smyth agreed, saying, "If the governor wants to release prisoners, he should deport the 20,000 inmates who are not residents of this country back to their countries of origin before releasing prisoners into our community."

Brian Levy, president of the Simi Valley/Moorpark Democratic Club, said, "Anytime there has been an overall downturn in the economy, everyone suffers, including our local and state budgets."

Schools, fire protection, police, foster care and environmental protections should be the last things considered for budget cuts, he said. "Most of these things cost more later on if neglected, so investments need to be made even if it means some deficit spending now," he said.

Levy also believes the current tax system is unfair to the working class. "The tax burden should be shifted from the masses that work for their money and spend most of it to survive to the few who use the bountiful resources and valuable infrastructure of the state and country to enrich themselves while avoiding paying their fair share," Levy said.

In regards to the root cause of the problem and proposed solutions, Levy said he's concerned that elected officials are using rhetoric to gain support. "I'm all about defining the problem, but representatives don't say what they actually will do to solve the fiscal problem," he said.

State legislators could learn a few lessons from local government, said elected leaders in Ventura County. Local officials are more accountable because they see their constituents on a daytoday basis, said Simi Valley Councilmember Barbra Williamson.

"It's time for state and federal representatives to start thinking about the people they represent like we have to do in the community," Williamson said.

"It takes thoughtfulness and creativeness to sit down with the budget and find out what you need and don't need," she added.

Simi Valley Councilmember Glen Becerra said the state should cut spending in anticipation of revenue downturns, not afterward.

Simi Valley has been fiscally conservative for years, and city officials save funds for rainy days, he said, adding that the city doesn't use one-time revenues for ongoing projects.

Strickland agreed. Many new programs created during surplus years can't be funded in the long term, so the state must reprioritize to make ends meet, she said.

Cities also have other concerns.

Moorpark Councilmember Roseann Mikos said municipalities rely on property and sales taxes for general funds, but that source of revenues is decreasing because home values have gone down and people make fewer purchases.

Janice Parvin, another Moorpark council member, said, "We have to seriously look at our future as a city." In addition to diminishing sales tax income, Moorpark also is losing income because residential and commercial developments have been stalled or stopped. The city is not getting developer fees like it has in recent years, Parvin said.

Moorpark Assistant City Manager Hugh Riley said, "Everybody is feeling the pinch, and Moorpark may need to not only defer projects but maintenance in some areas. Eventually this will hit home in terms of services."


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