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<br />9A <br />Page 1 <br /> <br />; \.\. LEAGUE C. <br />~~. c:rfTE"S I <br /> <br /> <br />Advocate Weekl <br /> <br />, ...... , J.'. iii <br /> <br />IN THIS ISSUE: May 15t 2009 <br />Issue #18-2009 <br /> <br />Page 6: California Cities Begin Declaring State of Severe Fiscal Hardship <br />Page 7: Local Government Associations Plan State Governance Reform Summit <br />Page 8: CalPERS Board Debates Methods to Ease Economic Pressures on Employer Contribution Rates <br />Bill Could Double local Government Costs for Public Safety Personnel with Cancer <br />Page 9: Apply for Funding from the Neighborhood Stabilization Program <br />Register Now for Energy Efficiency and Conservation Block Grant Webcast <br /> <br />LEAGUE OF CALIFORNIA CITIES OPPOSES PROPOSED SHOTGUN "LOAN" OF <br />CITY FUNDS TO BAIL OUT THE STATE BUDGET <br />Proposal is Reckless and Threatens Californians' Public Safety <br /> <br />Just as mayors and city councils statewide slash city budgets and reduce services to deal with <br />the worst economic crisis in decades, they learned Thursday that state leaders may try to coerce <br />local governments into providing a forced $2 billion bailout of the state budget if the May 19 ballot <br />measures fail. The May Revise option released by Gov. Arnold Schwarzenegger on Thursday, <br />May 14, containing that bailout, or "loan," essentially forces cities to rescue the state from its <br />financial quagmire and would cripple city services. To take money from cash.strapped cities now <br />amounts to a profound "anti-stimulus" action by the state. For more, see Page 2. <br /> <br />.................................... <br /> <br />SUMMARY OF MAY BUDGET REVISE PROPOSALS <br /> <br />The League has examined both of the May Budget Revise proposals released by Gov. Arnold <br />Schwarzenegger on Thursday, May 14. The proposals are contingent on the outcome of the May <br />19 special election. Originally scheduled for release May 28. the Governor moved up the May <br />Revise to May 14 because he wanted voters to understand the dire choices facing the state <br />budget. For more, see Page 3. <br /> <br />.................................... <br /> <br />GOVERNOR CALLED URGENT MEETINGS WITH CITY OFFICIALS <br />TO DISCUSS IMPACT OF BORROWING <br /> <br />Earlier this week, Gov. Arnold Schwarzenegger held roundtable meetings with approximately 50 <br />city officials to discuss Propositions 1A.F and the impact of their failure on state and local <br />services. League President and Rolling Hills Estates Mayor Judy Mitchell joined the Governor at <br />the meeting he held on Monday in Culver City. Tuesday. the Governor held a meeting in San <br />Jose which included Campbell Council Member Dan Furtado and Brisbane Mayor Sepi <br />Richardson. (See the full list of who attended below.) Chris McKenzie, League executive director. <br />also participated in both meetings. The League endorsed the May 19 special election ballot <br />propositions on April 6 to help prevent a deeper state fiscal crisis and to enact some long-term <br />state budget reforms. For more, see Page 4. <br />