The state budget Gov. Arnold Schwarzenegger signed Monday
included a $620,000 surprise for Hollister and $1.5 million for San
Benito County.
Hollister – The state budget Gov. Arnold Schwarzenegger signed Monday included a $620,000 surprise for Hollister and $1.5 million for San Benito County.
The money is part of $1.2 billion in Vehicle License Fees that the state withheld from counties and cites in the summer of 2003 in an effort to fill a nearly $40 billion state budget deficit.
According to City Manager Clint Quilter, the city was expecting to receive $310,000 in deferred VLF fees this year and the other half of the money in 2006-07. But he was glad to hear that the Hollister would be receiving the full $620,000 this year.
“We were happy. Anytime you get the money sooner you’re better off,” Quilter said. “I’m happy the state made good on its promise.”
The VLF money will be a welcome economic boost for City of Hollister, which recently sold two properties to ward off a $3 million budget deficit this year. Late last month, the city sold the vacant Fremont School and Fire Station No. 1 properties for $3.2 million to the Hollister Redevelopment Agency.
Quilter said there are no definite plans for the VLF money yet and it will be used to bolster the city’s general fund. But, he added, the one-time boost won’t solve the structural problems with the city’s budget.
The unexpected money is good news for San Benito County as well. The county is set to receive $1.15 million in deferred VLF money, according to Finance Director Dan Vrtis. To avoid a budget $2.6 million deficit, the county budget was recently balanced by dipping into the county’s $14.5 million reserves.
“It’s a nice thing to go into budgetary with,” Chief Administrative Officer Susan Thompson said. “This will help us mitigate that (deficit), if that’s what the board wants us to do.”
Thompson said she is not yet sure what her recommendation for spending the money will be.
“It’s wonderful news,” said Supervisor Don Marcus. “Any time the state comes through with reimbursing the county for money owed it’s excellent news.”
The state budget for the 2005-06 fiscal year avoids the borrowing that has plagued the state in recent years and does not raise taxes. It sets money aside to pay off some of the state’s debt and increases funding to most programs, including $3 billion more for schools and $1.3 billion for road projects.
“This budget is the result of a lot of hard work and a lot of compromise,” Schwarzenegger said. “It is an instrument of good for California.”
The Associated Press contributed to this report
Luke Roney covers politics for the Free Lance. Reach him at 831-637-5566 ext. 335 or at [email protected]
