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SA Page 24 In accordance with the League bylaws, the League board nominating committee, chaired by Riverside Mayor and Past League President Ron Loveridge, is currently receiving applications from Interested board members to fill the First Vice President vacancy. The committee's recommendation will then be presented to the entire board of directors. State May be Uable for Municipal Bankruptcy Unles. Cities Oppose Assembly Bill Oppose AS 155 Now The Assembly Appropriations Committee staff analysis of AS 155 (Mendoza) raises a number of concerns and notably considers the state's liability a major factor in its conclusions. Sponsored by the California Professional Firefighters, the legislation would require local agencies contemplating bankruptcy to first obtain approval from the California Debt and Investment Advisory Commission (CDIAC) prior to filing for bankruptcy. According to the committee's analysis lhttD:/Iwww.leainfo.ca.aov/Dub/09-10/bIllJasmlab 0151- 0200Jab 155 eta 20090505 172112 asm comm.htmll, the state may be fiscally and legally liable because It gives CDIAC the broad authority to deny a municipality's access to bankruptcy, places conditions on bankruptcy filings, and recommends alternatives. The committee analysis highlights the valid concern of a potentially new state obligation. This Isn't the first time the Issue of substantial state liability has been rai~ed related to municipal bankruptcy. The League opposes AS 155 because the bill Is an unnecessary Intrusion Into what Is fundamentally a local government's fiscal decision, Cities don't take bankruptcy lightly; in fact it's often a decision of last resort. ' The Legislature should be focused on finding ways to balance its own budget instead of thwarting local authority to make fiscal decisions. Local govemments would be better served with a guarantee that their revenues are safe from seizure by the state. Not only does the state's taking of local revenues harm the fiscal health of cJtIes, it also puts vital public services. such as pollee and fire, at risk of being dramatically reduced. This bill Is currently on the Appropriations Suspense File. which means that it has a potential fiscal impact of more than $150,000. Bills on the Suspense FOe will be heard in committee the last week of May. If your city has not taken action, the time is now. This is a matter of preserving local authority and it Is vital that your city weigh In on this issue. Please send opposition letters to your legislator and to the office of Gov. Arnold Schwarzenegger. A sample letter can be found on the League's Web site at www.cacities.ora/billsearch. Enter liAS 155"'nto the search field to locate the fetter. City officials with additional questions can contad Natasha Karl, League legislative analyst at nkarl@cacities.oro or Dwight Stenbakken, deputy executive director at dstenbakken@.cacities.ora. Support Bill Promoting Sustainable and Livable Communities Through Grants The League is encouraging cities to send a letter In support of AS 596 (Evans). This bill would create a fund to Implement provisions enacted through S8 385 (2008). Specifically It would establish the Community Planning Grant and Loan Fund and authorize the Strategic Growth Council. upon appropriation by the Legislature to provide competitive grants and loans for planning projects that promote sustainable and livable communities. Local planning plays an important role in addressing climate change, providing affordable housing, and protecting important resources. However, there Is not ,a continuous source of funding to assure that local agencies have the resources to adopt, update, and Implement their 6