Officials support ballot measure

Members of the Costa Mesa and Newport Beach city councils gathered at the Orange County Fairgrounds on Saturday in support of efforts to get a measure on the November California ballot to stop raids on city coffers to plug the state’s budget hole.

“Constant state raids on local government funds moves money out of our communities and to the black hole of state government,” Costa Mesa Mayor Allan Mansoor said at a drive at the fairgrounds on Saturday to collect signatures to get the measure on the November ballot.

Costa Mesa has had to cut about $20 million out of its annual budget because of slumping tax revenues, and faces another $9-million round of cuts this year, Mansoor said.

If the state were to borrow or divert much-needed tax revenue from Costa Mesa in the coming year, “it would kill us,” he said.

Newport Beach and Costa Mesa have both already given their formal endorsement to the proposed ballot measure, which would prevent further state raids on local government property tax funds.

With California facing another $20-billion budget deficit in the coming year, state officials could look to Newport Beach, Costa Mesa and other cities again to close some of the gap.

California voters approved Proposition 1A in 2004, which blocks the state from diverting local tax dollars, but still allows the state to borrow money from local governments. The proposed ballot measure would take away the state’s right to borrow any money.

“The state uses gimmicks to siphon money away from local cities,” Costa Mesa Councilwoman Wendy Leece said. “This is a way to stop them from taking money from our coffers.”

The coalition group Californians to Protect Local Taxpayers and Vital Services has already gathered about 550,000 of the 694,354 signatures it needs to get the measure on the November ballot. The group has vowed to collect 1.2 million signatures.

“Local governments have truly been balancing their budgets without the use of smoke and mirrors, and we wish our state legislature would do the same,” Newport Beach Councilman Mike Henn said.

Newport Beach is facing a $8-million budget deficit next year and is weighing everything from raising parking fees to switching off non-essential streetlights. Newport would have to dip into its reserves if the state tries to borrow money in the coming budget year, city officials said.

Newport Beach Councilwoman Nancy Gardner compared the situation to the fable of the Ant and the Grasshopper. In the story, the ant works hard to store food for the winter, while the grasshopper spends the summer singing, only to go hungry later.

“We have been very good ants, protecting our seeds and we need to protect ourselves,” Gardner said.