WE HAVE BALANCED THE STATE BUDGET

Yes, the City of Laguna Beach has helped bail out our Sacramento leaders who are simply unable to manage their finances in a prudent way. Based on the best information available (since the State budget negotiations occur behind closed doors!), our City of 25,000 is in the pot for about $3 million. That equals $120 for every Laguna resident.

There will be a one-time abrogation of $2 million in property taxes. There will also be a loss of $1 million in gasoline taxes. While this is intended to be $500,000 per year for two years, the likelihood is that this rip-off will continue in the future as the State remains unable to balance its budget without accounting gimmicks and usurping money from other governmental agencies.

Fortunately, City Councilmembers in Laguna Beach had the foresight to reserve money in recent periods of economic prosperity. While the pernicious State cuts will delay needed capital improvements, the City should be able to continue most basic services for the immediate future by using reserves.

In September, the staff will return to the Council for a significant revision of the capital improvement program. At that time, specific changes will be recommended to excise $3 million from our street paving program and other capital projects.