California Mayors Urge Lawmakers Not To Borrow From Cities To Balance State Budget


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(Sacramento, CA)
Tuesday, June 9, 2009

Mayors of California’s largest cities are telling state lawmakers to keep their hands off of city revenues.  They’re reacting to Governor Schwarzenegger’s plan to borrow from local governments to help balance the state budget.

Capital Public Radio's Steve Shadley reports...

The governor’s revised budget proposes to borrow up to eight-percent in property tax revenues from cities and counties.  He’s also planning to reduce gas tax revenues the state shares with them.
Los Angeles Mayor Antonio Villaraigosa says he wants assurances that the loans aren’t risky... 
  
“This is a state that’s almost in receivership.  And so we want to know that they can pay us back.  How do they securitize that loan?”  
 
Villaraigosa says if the state borrows from the city of Los Angeles he may be forced to layoff an additional 14-hundred police officers.  Democratic Senate Leader Darrell Steinberg says instead of borrowing from the local governments, he’d rather tap into the state’s proposed budget reserve fund to avoid cutting some programs.   Governor Schwarzenegger says they have to work together to solve the 24-billion dollar problem and the state needs every dollar in his budget proposal.