California Voters Reject Ballot Propositions; Library Budget Cuts To Follow
With massive budget deficit, state to borrow $2 billion from local property tax revenues
Lynn Blumenstein -- Library Journal, 5/21/2009
- All PLs, other services, affected by proposition failures
- State to borrow local property tax revenues
- New state budget timing undetermined
California public libraries are about to suffer more cutbacks, as voters
The scope of the budget crisis reaches into all areas of public life, as elected officials may have to suffer an 18 percent pay cut. The state may have to commute prison sentences, eliminate health insurance for poor children, and reduce aid to community colleges. The current system of governance is seen as insupportable and backing for overhauling the state constitution is growing stronger.
Impact on libraries
"Unfortunately, this was not a surprise," Kathy Gould, chair, California Library Association legislative committee, told LJ. Every type of public library will be directly affected, said Gould, who directs Palos Verdes District Library (PVDL).
County, municipal, and independent district libraries all are funded with varying amounts of property taxes. Now, for the first time, the state will invoke Proposition 1A, passed in 2004, which enables it to borrow up to eight percent of local property tax revenues twice within ten years, and can gives the state up to three years to pay back the funds.
PVDL, for instance, 88 percent funded by property taxes, stands to lose another $500,000 out of its $6.5 million budget, said Gould. It already has reduced service hours and the materials budget, she said, and now will have to renegotiate staffers’ labor contract.
Proposition particulars
As expected, about two-thirds of voters nixed five out of six propositions. (The only one that passed vetoes legislator pay hikes during budget deficit years.) Money would have been borrowed from lottery, mental health care, and early childhood health care and education funds. Higher taxes would have increased contributions to a "rainy day fund" to help stabilize state spending from year to year.
Fiscal aftermath
California’s fiscal year begins July 1 but the reality is much more complicated. The state is operating under a temporary budget because last year’s budget wasn’t finalized, explained Gould. A 17-month budget cycle began in February 2009. That budget was predicated on the assumption that the propositions would pass. Worse, the state has received less revenue than projected.
The ramifications of Proposition 1A, however, won’t be felt until a new state budget is passed and it’s difficult to predict when this will happen. "There is a sense of urgency," said Gould, who noted that, while a budget is needed for cash flow must be maintained, passage of a budget or tax increases requires a two-thirds majority in the state legislature.
