Governor Provides Funding for Counties, Cities

Dec. 18, 2003

Press release from the Office of the Governor

Gov. Arnold Schwarzenegger today exercised his executive branch power to ensure that scheduled payments will be made to cities and counties.

"I was elected by the people of this state to lead; since the Legislative leadership refuses to act, I will act without them," said Gov. Schwarzenegger. "We must protect the people in this state and give the cities and counties the money we owe them. "

Flanked by law enforcement, fire personnel, and supervisors, the governor
today announced his decision to invoke mid-year budget authority granted
to the governor by the Legislature. Section 27 of the 2003 Budget Act
allows the governor to spend approximately $2.7 billion for local governments
over the balance of the current budget year.

The section also gives the governor new authority to redirect up to 5 percent of a specific appropriation item into another category. Schwarzenegger invoked this new authority to redirect nearly $150 million in current-year spending to provide funds to local governments.

The governor also announced that the Department of Finance has informed
him that revenue receipts and projections through the end of this fiscal year will be $1.8 billion higher than anticipated.

"I support local governments here today just as I did when the mayors of the state visited the Capitol weeks ago," said the Governor. "I had the responsibility to correct the error of the previous administration. "

This action upholds the governor's promise to provide local governments with the funds for essential local services -- including fire and police services.