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• • . Resolution No. 3-04 A Resolution of the City Council of the Town of Los Altos Hills Endorsing Proposition 56 - "Budget Accountability Act" WHEREAS,Proposition 56, also known as the Budget Accountability Act, is designed to end the budget delays that have created a fiscal crisis in our state. The purpose of this measure is to enact a comprehensive reform of the State budget process designed to hold the Governor and Legislature more accountable to the People of California by producing more responsible and timely state budgets; and WHEREAS, after the Governor introduces the budget,the State Legislature and Governor have almost six months to complete the budget on time. However,the State legislature has not passed a budget on time since 1986; and WHEREAS,the State Legislature and the Governor face no consequences when they fail to meet the budget deadline imposed by the State Constitution. They can continue to collect their salary and expense allowances. They are not required to continue to work on the budget. In fact, they can even go on vacation; and WHEREAS, in order to hold elected officials accountable, voters are entitled to know how their tax dollars are spent each year and how their state representatives vote on the budget. Currently voters do not have easy access to this information; and WHEREAS, the two-thirds vote requirement to pass a state budget has contributed to persistent late budgets and deficits. Political party leaders refuse to compromise to solve the state's budget problem and have used the two-thirds vote requirement to hold up the budget; and WHEREAS, California, Rhode Island, and Arkansas are the only states in the country that require a vote of two-thirds or more of the legislature to pass a budget; and WHEREAS, party leaders threaten to punish state legislators if they refuse to vote the party line on the budget. Members of the Legislature should be accountable to their constituents, not to party leaders. Our elected representatives must be free to vote their consciences; and WHEREAS, California has faced large budget deficits and surpluses over the past ten years. Elected officials from both major parties have increased spending and cut taxes in good economic times, leaving the State with inadequate reserves when the economy turns bad. Saving money in a rainy day fund in good times provides a prudent reserve during economic downturns and states of emergency, which is essential for responsible budget management; and