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<br />9A <br />Page 10 <br /> <br />Mayor Ridenour said that his city will literally go dark If gas taxes are seized because they will be <br />forced to shut off 12,000 street lights. He told reporters that cities are not a state program but <br />separate governments that have suffered the same drastic revenue losses as the state. <br /> <br />The Modesto mayor ended his remarks by giving the can to Clovis City Council Member Nathan <br />Magsig. The council member explained to reporters how his county's (Fresno) unemployment <br />rate has skyrocketed to 15.4 percent and that the public works projects funded with gas tax are <br />imperative to keeping folks working. He ended his remarks by urging the Legislature to reject <br />these unconstitutional job killing proposals because the promised savings are illusory and will <br />only cause widespread economic harm. <br /> <br />League Executive Director Chris McKenzie was the final speaker and summarized the following <br />points about the proposed seizures of local funds for the state budget: <br /> <br />. They will undermine investor confidence; <br />. They are illegal; and <br />. They will kill jobs. <br /> <br />The press conference was well covered with representatives from both print and electronic news <br />outlets including: <br /> <br />. The Sacramento Bee <br />. Capitol Weekly <br />. KFBK-AM <br />. KCRA-TV <br />. Fox 40- TV <br />. Public CEO <br />. Capitol Television News Service <br /> <br />Capitol Public Radio also conducted a phone interview with Chris McKenzie following the news <br />conference. The Riverside Press Enterprise is running a story as welf on June 26. <br /> <br />'Budget Continued from Page 1... <br /> <br />While the redevelopment bill, S8 80, passed the Assembly, the scope of the bill has been <br />reduced from the previous three-year $1.050 billion proposal to a one-year hit of $350 million. <br />The language in the bill contains provisions that try to work around the recent successful lawsuit <br />by California Redevelopment Association (eRA), and collect $350 million from redevelopment <br />agencies for the FY 2008-09. Gov. Arnold Schwarzenegger has already vowed to veto these <br />money-raising bills, because they do not represent a complete solution to the state's budget <br />problems. <br /> <br />Attorneys are just beginning to review the language of S8 80. eRA however contends that this <br />action would still be unconstitutional. Many cities have adopted resolutions expressing strong <br />opposition and concerns about the proposed redevelopment fund take. Cities rely on these funds <br />as an important economic development tool and the loss of these funds amounts to an "anti- <br />stimulus" action by the state at a time when one of the most important things government can do <br />is promote job growth and stability. <br /> <br />The Senate and Assembly are meeting Friday. Senate President Pro Tem Darrell Steinberg (D- <br />Sacramento) says he is committed to working every day until the state has a budget. <br /> <br />Next Steps <br /> <br />Negotiations between the Democrats and Republicans appear to be far apart with no budget <br />compromise yet In sight. As developments occur, the League will communicate with our members <br />about the actions city officials can take to help protect local funds from a state budg~t raid. <br /> <br />3 <br />