CALL TO ACTION -- Budget Deal Catastrophic For Cities: Relies On Enron Style Accounting

FROM THE LEAGUE OF CALIFORNIA CITIES 

URGENT!!

Our League members in the Capital literally emailed 5 minutes ago, that there are Democratic members that have some concerns about the local government take in the proposed budget and that "it's blowing up." We need your calls into your Legislators offices ASAP. (see talking points below)

And if you get any feedback you can share, our lobbyists would find that very valuable.

Thank you for you help with this.

  _____ 

Subject: CALL TO ACTION -- Budget Deal Catastrophic For Cities: Relies On Enron Style Accounting

Importance: High

This may be our last chance to stop the horrific budget deal the Governor and legislative leaders have come up with. Our League lobbyists are telling us that some legislators are concerned about the cuts to local government, BUT THEY NEED TO HEAR FROM YOU. PLEASE CALL TODAY, AND ASK OTHERS TO CALL, AS WELL!

Budget Deal Catastrophic For Cities:

Relies On Enron Style Accounting                                    

The Legislature is expected to vote TODAY on a budget package that will put cities at grave risk. The plan, put together by the Governor and legislative leadership earlier this week, attempts to close California's $26.3 billion deficit with what can only be described as Enron-style accounting gimmicks.

The budget provisions include unconstitutional grabs of local gas tax and redevelopment funds as well as a Proposition 1A loan of property taxes to give the appearance of a balanced budget. The League has not seen actual budget language yet.  However, all indications suggest that the current budget proposal:

1.    Recklessly borrows $1.9 billion of local property taxes

2.    Illegally takes $2 billion of local gas tax (HUTA) funds

3.    Illegally takes $1.7 billion of local redevelopment funds

These "budget solutions" are nothing more than illegal and reckless Enron style accounting gimmickry that threatens vital city services to the tune of $5.4 billion.

California is at a crossroads.  The Legislature needs to enact an honest, balanced state budget that respects the will of the people, not a budget full of bad debt and illegal gimmicks.

Take Action NOW to

SAVE YOUR CITY!

ACTION:  What you can do TODAY.

1.    CALL YOUR ASSEMBLYMEMBER AND SENATOR and tell them that enough is enough.  It's time that they reject the current budget proposal and adopt a real budget solution that doesn't break the law and mortgage our children's future by recklessly borrowing and stealing from local government.

Legislators are scheduled to meet with their caucuses at 12 p.m. TODAY (July 23).  Please call them between 9 a.m. and 12 p.m.

2.    FORWARD THIS CALL TO ACTION TO PEOPLE WHO CARE ABOUT PROTECTING CITY SERVICES AND URGE THEM TO DO THE SAME. This may be our last push before the Legislature votes on the budget so please MAKE IT COUNT!

TALKING POINTS:

Reject borrowing.  It is fiscally irresponsible and reckless to borrow from local government. Cities simply cannot afford to bail the state out of its chronic budget mess and the state is incapable of paying the loan back, plus interest, when it matures in three years. 

Reject the illegal gas tax take.  Taking $2 billion of local gas tax funds that are used to repair our streets and traffic signals, power our street lights and reduce traffic hazards is not only reckless, but illegal.  More than 180 cities have passed resolutions authorizing their city attorneys to assist with a lawsuit.  Make no mistake about it, cities are ready and will go to court the day after the budget is signed to block this unconstitutional raid.

Reject the illegal redevelopment take.  Robbing cities of their local redevelopment funds that are used to remove blight, build affordable housing and revitalize communities is not only wrong, but blatantly and recklessly disregards what the courts have already determined is unconstitutional.  The California Redevelopment Association has vowed to once again take swift legal action if redevelopment dollars are taken.

 

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Ben Wong

League of California Cities

Regional Public Affairs Manager

Los Angeles County Division - Executive Director

P. O. Box 2336

West Covina, CA 91793-2336

213-300-VOTE (-8683) Cell

213-559-8989 Fax

916-658-8200 Phone

 <mailto:bwong@cacities.org> bwong@cacities.org

 <http://www.cacities.org> www.cacities.org

 

Working together to restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians