Davis Challenged With Aid Bill

A two bill package that would give $500 million in aide tocities and counties is awaiting Gov. Gray Davis' signature, a directchallenge by the Legislature to either commit more than Davis would liketo local governments or veto popular programs such as libraries androads. Davis will most likely sign one of the bills, officials state,disbursing a one time grant of $212 million to cities, counties andspecial districts. Local government officials assert the grant isinsubstantial, and more of the state surplus could have been given tolocal governments as compensation for the state property tax grab in the1990s. The second bill would freeze how much property tax the statecould take from local governments, freeing nearly $300 million a year tolocal governments. Local officials, however, are doubtful Davis willpass the measure.