July 21, 2009
Contact: Kristine Guerrero (626) 716-0076 Jennifer Quan (626) 786-5142
Media Advisory: Los Angeles County City Officials Hold Press Conference 2:00 p.m. at the Hall of Administration to Condemn State Budget as Reckless and Irresponsible Ponzi Scheme
What: The state budget proposal being voted on by the Legislature later this week will put cities at grave risk. California’s legislative leaders and the Governor have agreed on a proposal to “balance” the state budget with illegal raids of local government gas tax and redevelopment funds, as well as a “loan” of local government property taxes that is unlikely to be repaid.
City officials will be speaking out publically to denounce this terrible budget and will explain why this budget can only be described as nothing more than a Ponzi scheme and the real impacts it will have on city services.
Where & When: Wednesday, July 22, 2009
Kenneth Hahn Hall of Administration
500 W. Temple St.
Los Angeles, CA
(At steps of front entrance on Temple)
Who: Judy Mitchell, President, League of California Cities and Councilmember, Rolling Hills Estates
Zev Yaroslavsky, Los Angeles County Supervisor, Third District
Michael Antonovich, Los Angeles County Supervisor, Fifth District
Antonio Villaraigosa, Mayor, City of Los Angeles (invited)
Jim Hudson, Police Chief, Alhambra and President, Los Angeles County Police Chief’s Association
BACKGROUND: Eighty four percent of voters passed Proposition 1A in 2004, preventing state raids of local government revenues. Seventy-seven percent of California voters passed a second Prop. 1A in 2006 to ensure state sales tax on gasoline is used only for transportation projects and improvements. These overwhelming votes should have sent an unequivocal mandate to Sacramento policymakers. However, the Legislature is talking about raiding local government as part of a borrowing scheme.
Borrowing local government and transportation dollars is bad fiscal policy. The money must be repaid in three years with steep interest, which will put the state further in the red. Additionally, even a short term deferral of these funds will derail critical public safety, transportation and transit services in communities throughout Los Angeles County. It’s a direct assault on the will of California voters, who have overwhelmingly passed measures to protect these funds from such raids and borrowing. ###