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<br />8A <br />Page 3 <br /> <br />offered any budget solutions, only objections. He said that the two sides are "now at loggerheads" <br />with an impasse. <br /> <br />Sen. Cogdill released a response countering the Senate Pro Tem's "loggerhead" statement. He <br />said that the budget impasse is because "the Big Four" have not met in two weeks and that the <br />Republicans have in fact proposed ideas to close the budget without raising taxes. <br /> <br />To Borrow or Not to Borrow <br /> <br />To borrow or not to borrow is one of the on-going budget questions being debated. The League <br />launched www.cutupthecard.com last week as a vehicle to communicate that the state needs to <br />close its deficit without borrowing local government revenues. <br /> <br />Five more press conferences across the state in the past week have provided an opportunity for <br />city officials to stand up publicly and cut up the "Local Government Credit Card." The message <br />continues to resonate as more and more cities pass resolutions urging the Legislature to draft a <br />budget that does not rely on borrowed money. <br /> <br />This week, the presidents of three local government associations, the League, the California <br />State Association of Counties (CSAC) and the California Special Districts Association (CSDA) <br />sent a joint letter to the Governor and members of the Assembly and Senate. The letter reiterated <br />the organizations' strong opposition to borrowing Propositions 1A (property taxes) and 42 <br />(transportation) protected revenues. <br /> <br />The joint letter is available on the League's Web site at <br />www.cacities.oro/resourcefiles/27103.JointLocaIAssn Letter Auo52008.pdf. <br /> <br />The Governor has repeatedly said that he is against borrowing and that it is wrong to use local <br />government or transportation revenues to fix the state's deficit. He reinforced his position at his <br />Aug. 6 press conference once again. <br /> <br />"Because we have gone through this before, just as recently as 2003, when both parties were <br />there at a standoff and they could not move forward. And one said we won't raise taxes, the other <br />one said we won't make cuts and we won't and we won't. And what happened? They borrowed <br />and they took money and stole money left and right. And now they just kicked that can down the <br />alley and now we have the same problem again," said the Governor. <br /> <br />He continued: "And I think it is important to not go in the direction of borrowing again, because <br />that's what they have done in 2003; they have borrowed their way out of it. And I have said that <br />borrowing is not the solution for ongoing programs, we cannot borrow for ongoing programs. I <br />think it is not a good thing to do." <br /> <br />The Governor's press conference is available on his Web site at htto:llqov.ca.QOv. <br /> <br />Senate Republican Leader Dave Cogdill (R-Fresno) however said this week that borrowing local <br />government and transportation revenues is still on the table. In an interview with KQED's John <br />Myers, broadcast on the California Reporl on Aug. 6, the senator acknowledged that Republicans <br />might be willing to borrow from voter protected local government and transportation funds. He told <br />Myers that such borrowing would have to be accompanied by a "strong plan" to repay the money. <br /> <br />The California Reporl is available online at www.californiareport.orQ. <br /> <br />What's Next <br /> <br />During the Governor's press conference, he announced that he will not sign any bills until a <br />budget is passed. In fact, the Governor told reporters that he would veto any bill sent to him. This <br />has caused quite a stir in the Capitol. There are some ways that the Legislature can delay <br />sending the Governor bills. It is not yet clear what the fate will be of legislation that is going to be <br />sent to the Governor or has been sent to him. <br /> <br />3 <br />