The City of Daly City balances its budget each and every year.

We have already dealt with the local economic downturn. We live with 45 less staff in order to balance our current 2003/2004 budget. We only get 20 cents of every dollar paid by residents in property tax. We have lived within our means to provide services to the community, and our financial house is in order. (See the list of staff the City has already cut--Exhibit 1)

The State of California already takes $3 million of our local tax dollars this year, and has taken in excess of $40 million of local tax dollars away from Daly City since 1981.

The State of California does not fund cities, and does not fund Daly City. We fund our services to residents from our own local taxes. When the State takes our local funds it is taking local revenues directly from services that we could otherwise provide for the residents of Daly City. (See the revenues the State has already taken--Exhibit 2)

The State of California does fund Counties and School Districts. In the media and public discussions of State finances, it often sounds as if the State funds cities too, but it does not. What the State continues to do is to take local funding to fund State programs.

The Governor has proposed that an additional $1 million be taken from Daly City as a share in helping to resolve the State’s financial crisis.

We and other cities have already been sharing “the pain” in excess of $40 million taken since 1981, and in the continuing loss of $3 million for this fiscal year.

The State Bond measure to be voted on in March is important to Daly City. Its failure could lead to the State attempting to further seize local funds to pay for State expenses.

Exhibit 3 shows examples of programs and services which could be at risk if the City experiences more revenue losses. The magnitude of the $1 million to $4.5 million dollar losses cannot be absorbed by the City without cutting programs and services to basics only.

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