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The State of California Will Borrow $7.8 Million More From the City of Alameda

By Erica Madison

During a City Council meeting on Oct. 6, 2009, City Manger Ann Marie Gallant’s Staff presented a report on the Budget Taylor bill, which allows the State to borrow money every 10 years.

Although it hasn’t been passed by the Senate, the State of California is signing up agencies for the Budget Taylor Bill. This new bill provides more legal ways for the State of California to borrow money from Alameda City.

According to City Manger Ann Marie Gallant’s Staff, the State has already taken $2.2 million in property taxes under Proposition 1A. However, the Budget Taylor Bill will allow the State to take even more money from the City’s budget. The bill will allow the State to borrow money from property taxes and redevelopment funds, for a grand total of $7.8 million.

What’s enticing about this new bill, is the State will pay for all of the financing and the interest. Under Proposition 1A, Alameda City is not guaranteed to get all of its money back. Under the new Taylor bill the State promises to pay back 100 percent of the money borrowed within three years, including interest.

The Taylor Bill is a voluntary action, but the State has already signed 700 agencies. However, this is all speculation at this point. According to City Manger Ann Marie Gallant’s Staff, the bill is still waiting for one more Republican vote in the senate before the bill is passed.

Once the bill has passed , the City manager will return to the City Council on Oct. 20, with more details on the operation of the bill. At this time the council will vote, on whether they will join the program or not.

“We won’t come back and recommend it unless it’s in our best interest” said City Manager Ann Marie Gallant. “This would save us $5 to $7 billion dollars.”

Even though this plan allows the City to make more money, Mayor Beverly Johnson is not too happy about having to loan the State more money.

“This (Budget Taylor Bill) is, because the State refuses to balance its own budget.” Said Mayor Beverly Johnson.

The City manager couldn’t agree more.

“If the market was different and we were making money, this wouldn’t work.” Said Gallant.

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