AgdaPkt 2008-11-10 Clsd and Reg - Laserfiche WebLink

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8A Page 2 'Special Session' Continued from Page 1... While the details are still emerging, the Governor has announced his intention to call the special session to begin on November 5-the day after the election. The current legislature will serve in office until November 30, giving them just a few precious weeks to address a budget gap in the current year that is reportedly approaching $10 billion. The new legislators will be sworn in December 1. Earlier this week the Governor met with the Education Coalition to begin the dialogue with those organizations that have a direct stake in the state general fund. In that meeting, the Governor outlined the difficult economic position of the state and the lack of alternatives to deal with the problem. He also indicated that all organizations with a stake in the budget would likely have to take a share of the cuts that must be made and that new revenues (such as his sales tax proposal) would be needed. The Governor followed that meeting with a statement on Wednesday in which he described the situation as a "state of emergency. which required that all services be "on the table" for reduction, including law enforcement, prisons. health and education. Private briefing sessions with stakeholder groups, including one with transit advocates on Thursday and tocal government today, included similar statements. These public pronouncements by the Governor signal a very difficult, potentially long and painful budget debate that will likely result in serious cuts to the current 2008-09 budget and perhaps even deeper cuts when constructing the 2009-10 budget. Cities are once again at risk during these budget debates, whether in the form of reductions in public safety subventions (e.g., COPS and Booking Fees) or potential "loans" of local property taxes or transportation revenues. As you know, borrowing local funds will only deepen the local budget crisis and increase the state structural budget deficit. It also will delay the economic recovery and put our citizens' safety at risk. As the frontline troops in attacking the mortgage foreclosure crisis that is at the root of our economic problems, cities use their local property tax revenues to keep citizens safe and transportation and redevelopment funds to make infrastructure investments that are critical to the state's economic recovery. Most city officials believe it would destructive to force cities to bailout state government during this time of crisis. If fact, it will dig a deeper hole, lead to greater community blight and loss of property values where foreclosures have occurred, and put citizens and neighborhoods at risk. City officials are urged to call their legislators immediately and make these simple points. supported by local examples. . City Revenues Are Declining. City revenues are declining and cities have already made deep budget cuts and are preparing to make deeper ones_ Many cities have eliminated positions, including police and fire positions. . Cities Are At the Front Line tn Attacking the Foreclosure Problem. With a variety of resources cities are leading the way in helping convert foreclosed homes to affordable housing, keeping neighborhoods safe and attractive and helping stabilize declining property values. . A Local Government Bailout of the State Will Delay the Economic Recovery! If local government revenues are used to bailout the state budget, cities will not be able to keep neighborhoods safe, assist with the safe of foreclosed properties, and make the economic and infrastructure investments that help create jobs and economic growth. Redevelopment agencies are key partners of the state in promoting the economic recovery and have already lost $350 million to the state that could have been used to support the economic recovery. City officials are urged to deliver these messages as soon as possible. It is critical that the state budget crisis not be allowed to deepen the local budget crisis. It needs to be contained and dealt 2