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8A Page 3 these funds; however other lawmakers from both parties appear to be seriously considering this option. What's at Risk for Cities and Taxpayers If the Legislature Insists on Borrowing Notwithstanding the strong opposition of the Govemor and the Senate Pro T em , rumors persist that a package of multiple borrowing proposals will be offered as part of a budget package - perhaps in the next day or so. Any proposal to incur more operating debt by borrowing from a wide range of local govemment and other voter approved protected funds is fraught with interest rate and related securitization problems. The League was recently advised that the state would have to repay local agencies at a constitutionally set interest rate of 7 percent per year. However, a local agency that can't afford to wait for repayment by the state could be forced to securitize the state's repayment obligation, raising the cost to the state or the local agency (and taxpayers) by an additional 7-12 percent. The cost of securitizing receivables from the state has risen dramatically since the 2004 Vehicle License Fee (VLF) gap loan securitization because of the melt down in the bond insurance industry and turmoil in the municipal bond market. State's Economic Recovery At Stake If the Redevelopment ERAF Shift Occurs City officials understand that redevelopment may be Califomia's most important program for creating high quality construction jobs, making investments that help reduce greenhouse gas emissions, and in supporting the economic recovery that is so vital to the long-term fiscal health of our state government. The state reaps tremendous income tax, sales tax and property tax benefits from redevelopment projects. Reducing redevelopment funding is the political equivalent of a farmer eating his own seed com. You may be ravenously hungry, but you dare not eat it because you will have nothing the next year. What City Officials Can Do City officials should contact the Governor, (916) 445-2841, to thank him for his partnership with cities and his understanding of the important role cities play in providing public safety and other services to residents. Please acknowledge the Governor's his continued strong stance on protecting local government revenues that goes back to 2004 and the passage of Prop. 1A with 84 percent of the vote. City officials with concems about the RDA impacts should also share this with the Governor immediately. Phone instructions for calling the Governor: . Call (916) 445-2841 . Press #1 for English . Wait for the menu options . # 1 Address, Fax Number . #2 to voice an opinion on legislation . #5 to voice an opinion on hot issues . #6 to speak to a representative In addition, city officials should a(so contact their legislators and explain the likely impacts of budget cuts in their city (with specifics). Ask legislators to work with their colleagues and the Govemor to produce a budget that avoids borrowing and seizing local redevelopment funds that are critical to our state's economic recovery. 'ILG' Continued from Page 1... By 2012, naturalized adults, naturalization-eligible immigrants, and young-adult citizen children of immigrants could represent 7.7 million voters in California, or 29 percent of the electorate. Pastor, a professor in USC's departments of geography and American studies and ethnicity, will present 3