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9A Page 1 ;,r'3~,'$(~.. (~~~Ulr ..;:~ ~d;1HJ'!, l}tI.l1i~~jif~~V~ 3"if.:4l P-c-lI:$,(j' ti:~'k~ .fri<a.t Affl;!lf.t CtNfNi"..t!' nf~t'S PRIORITY FOCUS l ~ L E/~~JI- Ii ~ ~ II.. IN THIS ISSUE: Jan. 11,2008 Issue #2-2008 Page 6: Prop. 18 Proposed Goods Movement Guidelines Available U.S. Communities Offers Ufe-Saving Automated External Defibrillators Page 7: Save the Date: League Events Scheduled for NLC 2008 Congressional City Conference, March 10-12 Find a Bill, Legislators. Leg Committee, or Ask League Leg Staff GOVERNOR OUTLINES SOLUTIONS TO FILL CURRENT YEAR BUDGET GAP AND ADDRESS PROJECTED DEFICITS FOR FY 2008-09 Cuts Primarily to State Programs and Services: Local Property Tax and Prop. 42 Revenues Not Affected Gov_ Arnold Schwarzenegger released his proposed budget Jan. 10. He began by declaring a fiscal emergency and calling for "true reform" of the budget process to provide the state with a permanent solution to the systemic structural deficit. For more, see Page 2. .................................... SCHWARZENEGGER CALLS FOR PERMANENT SOLUTION TO BUDGET WOES IN STATE OF THE STATE ADDRESS Gov. Arnold Schwarzenegger in his annual State of the State speech Tuesday, Jan. 8, said that it is time for California to face its budget demons. He outlined a series of proposals, including a constitutional amendment, intended to provide permanent structural changes to stabilize the state's chronic budget imbalance between revenues and expenditures. For more, see Page 5. .................................... REPORT RELEASED ON PENSION AND RETIREE HEALTH BENEFITS State and local governments face a $118 billion shortfall in unfunded retiree health benefits according to a report released earlier this week by the Public Employees post-Employment Benefits Commission (PEBC). For more, see Page 5.