California Governor Arnold Schwarzenegger proposed a $125.6 billion budget for 2006-2007. He plans to increase spending on education and transportation and cut funding for some welfare and health programs, while not increasing taxes. Arcadia Mayor John Wuo agrees that California needs to make substantial investments in the state infrastructure.
Many San Gabriel Valley cities are seeing an increase in property tax revenues in the 2009-2010 fiscal year, namely San Marino, Arcadia, Bradbury, Alhambra and South Pasadena. Arcadia's property tax revenue is expected to be $3,359,282.80 compared to $3,294,314.77 in 2008-2009. Other cities' figures are given. In the average city, property taxes make up 11% of the city budget.
In this ailing economy, San Gabriel Valley property values have dropped significantly, as reflected in the county's home assessments. The county property roll is at $1.1 trillion, a nearly 1% decrease compared to 2008. Homeowners will have smaller tax bills but cities are having to reduce services and employees as they lose businesses, sales tax revenue, and property tax revenue. See a chart of Los Angeles County Assessor's Office property values report showing Arcadia and neighboring cities. Arcadia is a city whose 2009 value increased 2.2% compared to last year.
Arcadia would lose $1.2 million in revenue during the next two years under a California State budget plan proposed by Governnor Arnold Schwarzenegger. Also, a dog park at Eisenhower Park would open.
The state's budget crisis could mean that Arcadia Unified School District will suffer a shortfall of an estimated $2.3 million in the 2008-2009 fiscal year. Figures for other local school districts are included.
Governor Arnold Schwarzenegger appointed Thomas L. Willhite, 50, of Arcadia to the State Court of Appeal for the Second District. Willhite has also been a Superior Court judge and a Los Angeles Municipal Court judge.
Thousands of Arnold Schwarzenegger supporters came out to see him at the Los Angeles County Arboretum on his campaign tour in the special election to recall Governor Gray Davis. Voters have chosen Arnold Schwarzenegger to replace Gray Davis as governor of California.
Arcadia City Manager Bill Kelly is skeptical about the way the State of California balanced this year's budget. The State promises to pay cities back for sales tax to be used to pay off $10.7 billion in loans. The maneuver, known as the "triple flip" will take half of the cities' sales tax revenue for the next five years, and pay it back out of property taxes now earmarked for schools. Arcadia will lose 25% of its vehicle license fee reimbursement, around $750,000. Arcadia is in good shape this year and next, primarily because of a healthy reserve fund. After 2004-2005, unless some solutions are in place, the city could face some hard times.
The jobless rate in Los Angeles County jumped to 8.4% in October. Countywide, unemployment was up 33,000 in October to 415,000 people. Among San Gabriel Valley cities, Baldwin Park, El Monte and Montebello have the highest numbers of unemployed. A chart shows unemployment in other cities. Arcadia has 1,300, or 4.6% unemployed.
State Controller Steve Westly formally announced his candidacy for governor in 2006 election. He is the second Democrat to announce his intention to unseat Governor Arnold Schwarzenegger. State Treasurer Phil Angelides is also running.
Public employees' retirement and pensions are costing cities up to 25% of the city budget. In March, CalPERS announced its stock portfolio had lost 39.8%. Costs for retirees are ballooning and El Monte and West Covina budgets have been hit hard from the recession. Arcadia, which had the fourth highest pension costs of the 24 cities surveyed, spent $6.7 million last year for its 357 current employees and retirees. The city's general fund budget is $46 million.
Senator Bob Margett told Arcadia City Council that California is facing a $15 billion deficit in the 2003-2004 fiscal year and cities could be targeted for revenue transfers.
Since state lawmakers have reached a budget deal. West San Gabriel Valley cities will receive monies to be used for road repairs and transit improvements. Arcadia will receive $237,931 in 2005-2006. In the past two years, these funds were withheld by the state to cover budget shortfalls.
County home prices were up slightly in April after more than 1.5 years of declines, according to the California Association of Realtors. Arcadia's median home price was $689,090 in April, down 8% from a year ago. A chart shows figures from other local cities.