LEGISLATIVE ALERTS LEGISLATIVE ALERTS are the means by which the League instantly communicates the necessity of the involvement of city and town officials, your involvement, in the legislative process. Each ALERT will explain what a legislative bill does or what the issue is about, the impact on cities and towns, and who to communicate your positions to via your phone calls, letters or e-mails. When a LEGISLATIVE ALERT is prepared, a flashing icon will appear on our web-site's home page to alert the membership that their actions are needed on a bill or legislative issue. Clicking that icon will bring the member to this page where copies of the ALERT can be downloaded. Please remember that if legislators don't hear from you, they will assume that you don't really care or that it's a "League issue", not a municipal one. It is imperative that you speak out! Don't minimize the impact of your involvement. You really can make a difference! GOVERNOR'S PROPOSED 2004 BUDGET AND FISCAL RECOVERY PLAN REQUIRES MAJOR REDUCTIONS IN STATE AID TO CITIES AND TOWNS General Aid General Revenue Sharing (Article 16, Section 1.) Freeze of the distribution percentage at 2.6% in 2004 thru 2010. 2004 loss @ $3.2 million. 2005 loss @ $8 million; 2006 loss @ $17 million; 2007 loss @ $24.4 million; 2008 loss @ $34.9 million; 2009 loss @ $44 million; 2010 loss @ $54 million. Cumulative loss 2004 - 2010 @ $185.5 million. Continued phase-out of local Inventory Taxes with no continued State reimbursement beyond FY2002. 2004 - 2008 loss in Inventory Tax reimbursements @ $25 million. Motor Vehicle Excise Phase-Out (Article 13) Freeze the CPI adjustment on the assumed increase in local tax rates which were frozen at the December 1996 levels to FY2008. 2004 loss @ $3.3 million. 2005 loss @ $9.2 million; 2006 loss @ $15.7 million; 2007 loss @ $23.3 million; 2008 loss @ $31.4 million. Cumulative loss 2004 - 2008 @ $82.9 million. PAYMENT IN-LIEU-OF TAX PROGRAM (Article 16, Section 2.) Fully fund PILOT at the statutory 27% level. 2004 aid increased by $3.5 million. Enabling authorization to allow several cities and towns to impose property taxes or require other payments in lieu of taxes from "private non-profit institutions of higher education". BEACH PARKING FEES (Article 15) Eliminate the local share (27%) of daily beach parking fees to the host municipalities saving the state approximately $511,716 in FY2004. Four (4) communities received shared parking fees for the 2002 beach season–Charlestown ($32,524); Westerly ($198,830); South Kingstown ($24,442); and Narragansett ($255,919). Net loss to four eligible communities @ $500,000. EDUCATION AID (Article 9) FY2004 Education Aid virtually frozen at $740.9 million: total FY2004 increase of $900,000. Local maintenance shall remain in an amount not less than total local contribution in prior fiscal year, but prior year's level shall be reduced by savings attributable to teacher retirement savings. Estimated savings to local employers due to 2% increase in school teacher contributions: $9.5 million. Any surplus in state or local funds appropriated for educational purposes shall not affect a city or town's requirement to fund schools at prior year's level. The school housing aid share ratio shall be increased by four percent (4%) in Cranston, East Providence, Newport, Providence, Warwick, Woonsocket and the Chariho regional district upon the transfer of state ownership of regional career and technical center buildings located within those communities. School districts, not municipalities, may apply for reimbursement for school construction costs. Only those projects undertaken by the school committee and located on school property are eligible for reimbursement. Facilities with a combined school and municipal use or operated jointly with a non-profit agency do not qualify for reimbursement. Interest on school construction financing no longer reimbursable unless bond is approved by voters before June 30, 2003 or issued by municipal building authority before June 30, 2003. Reimbursable school projects shall exclude bond insurance costs, demolition costs, purchase of furniture, fixtures or equipment unless the project is supported by a general obligation or lease revenue bond.