All that may be coming to an end soon. And what's more, cities will actually be getting back the money they have loaned to the state.

In mid-July 2006, Saratoga stands to get back nearly $738,000 the state will be borrowing from the city this year and the next, if Proposition 1A, on the ballot in November, passes, according to estimates from city officials.

Assistant City Manager Lori Tinfow said that with the measure, money borrowed after July 1 this year would be returned to local governments at the end of two fiscal years.

All this is happening because Gov. Arnold Schwarzenegger has reached an agreement with legislative leaders to protect local government, in the form of Proposition 1A.

Proposition 1A prevents the state from permanently taking away the local-government share of existing sales and property taxes and vehicle-licensing fees.

It will protect funding for fire, law enforcement and other essential services. Any service that is forced on local governments by the state will have to be funded by the state.

The state can borrow more money from local government only if money is needed during an emergency.

"This measure is going to solidify our budget. We will know what our budget is going to be," said Mayor Ann Waltonsmith. "If we do not have a measure, then the state can continue to take away money at will."

Waltonsmith said the city worked very hard to plan its budget and take care of problems. "But planning is extremely difficult when you do not know how much money you are going to have," she said.

She said the measure would be especially beneficial for a city like Saratoga, because the city is looking for more money to maintain its aging infrastructure.

Rebecca Elliott, regional representative for the League of California Cities, said that the league and local governments will now support Proposition 1A instead of Proposition 65, which was placed on the ballot earlier to try and stop the state from taking away money, due to the agreement between the governor and local governments.

Proposition 65 had qualified for the ballot after 1 million signatures had been collected from around the state.

Over the next two years, the state of California will receive about $1.3 billion from local governments each year. "This will be a constitutional protection so that the state cannot raid local governments again and again," Elliot said. "And the budgeting cycle will be much easier to plan."

Elliot added that Proposition 1A would make local government a partner in the state-budget process.