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FOR IMMEDIATE RELEASE                                             Matt Szabo
June 9, 2009                                                              (213) 978-0741
MAYOR VILLARAIGOSA LEADS DELEGATION OF MAYORS TO
STATE CAPITAL TO PROTECT FUNDING FOR CRITICAL
SERVICES

Mayors return to Sacramento to meet with Governor and legislative leaders to
protect cities from effects of State borrowing and raiding of gas tax money

LOS ANGELES – Returning to Sacramento, Mayor Antonio Villaraigosa today
led a delegation of California mayors to the State capital to protect critical city
services as the State struggles to close a $24 billion budget deficit by borrowing
from local governments and raiding of local funds such as gas tax money without
repayment.
“There is a better way,” Mayor Villaraigosa said. “We come here as productive
partners ready to work together and offer viable solutions that ensure our
financial stability and chart a course toward more responsible fiscal stewardship.”
In May, Mayor Villaraigosa led a delegation of mayors to Sacramento to meet
with State officials and legislative leaders and offered to work as partners in
solving the State’s budget deficit while protecting city services.
In meetings today, the delegation emphasized two core principles. First, any plan
to withhold tax revenue from cities must be accompanied by a plan to return the
money to local government as soon as possible.
“Our willingness to sacrifice on the State’s behalf does not represent an openended
commitment or a blank check,” Mayor Villaraigosa said. “We must be sure
that our hard-earned tax dollars make their way back to taxpayers as quickly as
possible.”
Second, the mayors called for the State to minimize cuts to critical city services,
including police and fire departments, emergency responders, schools and road
repair.
Following the defeat of State Propositions 1A-1E and the widening State budget
deficit, the State is considering balancing its budget through various measures,
including borrowing up to eight percent of city and county tax revenues under
Prop 1A ($68 million from L.A.’s general fund revenues).
The Legislative Analyst’s Office (LAO) recently proposed repealing local gas tax
revenue from cities and counties without repayment – an impact of $57 million
used for road repair and street services. The LAO also called for suspending
Prop 42 payments which could result in fare increases for public transit, service
cuts or delays in major infrastructure projects.
“It is our duty to protect the central government services the people of California
demand, deserve, and fund at the store and at the pump,” Mayor Villaraigosa
said.
The Mayors met with Governor Arnold Schwarzenegger and legislative leaders of
both parties in an effort to ensure that budget balancing actions protect critical
city services.
The delegation included San Diego Mayor Jerry Sanders, Santa Ana Mayor
Miguel Pulido, Sacramento Mayor Kevin Johnson, and Fresno Mayor Ashley
Swearengin.
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