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9A Page 12 judge. The bill is adamantly opposed by the League and other local government associations. It constitutes an unwarranted Intrusion into what is a very local decision. The League is opposed to AS 155 for the following reasons: Offers little In solutions to local fiscal crises and likely causes greater harm: AB 155 undermines the principal benefits of federal bankruptcy: the automatic stay of financial obligations and time to allow a debtor some "breathing space" to formulate" a debt restructuring plan. The state has no expertise on local finance issues. Bankruptcy judges have financial expertise that CDIAC cannot offer. CDIAC does not bring anything to the bankruptcy process that is not already present. Unlike other courts, bankruptcy courts are under the direction of judges trained in finance and bankruptcy. These judges are competent to render a decision about a local agency's solvency, the state is not. The bill turns a financial decision into a political decision. Sponsors say local governments will use bankruptcy to break union contracts-Slmply not true: Bankruptcy is not a decision that is made lightly. Bankruptcy judges are tasked with rendering a decision as to whether an entity is solvent, which requires a rigorous examination of a local government's fiscal condition. Only after a bankruptcy judge finds an entity insolvent may they proceed into bankruptcy. Furthermore, once in bankruptcy proceedings, a municipality must meet several tests in order to abrogate labor contracts. In other words, municipalities have the burden of proof in order to seek and receive abrogation of labor contracts. Bankruptcy Is not taken lightly by any locally--elected official: The decision to go into bankruptcy is a difficult decision under any condition. An agency teetering on fiscal viability does not take such decisions lightly; bankruptcy is a "solution" of last resort. Recent amendments are irrelevant and do not remove the League's opposition: The state cannot afford to be liable to a local agency's creditors in the event the CDIAC denies an entity's petition. By simply stating in statute that the state is not liable for its decisions, does nothing to relieve the state's potential liability. Assessing a fee for a mandated process is absurd during a time that an agency's financial obligations are expected to be met when they are unable to meet them. For these reasons, the League opposes AB 155 and asks that cities contact the member of the Senate local Government Committee and ask for their NO vote on the bill on July 8. SaveYourCity.net Reaches 500 Video Testimonial Milestone Opposition to State Proposals to Raid Local Funds Continues SaveYourCity.net reached a monumental milestone this week when the 500th video testimonial was loaded on the site. The site serves as a platform to tell polley makers how communities will be devastated if the state raids local Gas and Redevelopments funds. Local elected city and county officials, state legislators, members of labor and public safety groups as well as concerned citizens, have all recorded testimonials asking the Legislature to save California cities. Launched by the League in May, www.SaveYourCitv.netautomatically sends each video to the legislators of the person who made it and Gov. Arnold Schwarzenegger. More than 8,000 visitors have already flocked to the site, spending an average of four minutes watching videos and exploring the resources. The Web site also features an interactive forum where visitors can search for videos relevant to their local community, a form for groups wanting to join the Save Your City Coalition and a tool kit with fact sheets for how budget cuts will affect the affordable housing community, public safety, the environment, labor, builders and business. SaveYourCity.net has attracted considerable attention from the Legislature with a growing number of members making their own videos including: Senate Republican Leader Dennis Hollingsworth, Assembly Member Anna Caballero, Assembly Member Curt Hagman, Assembly Member Tom Berryhill. Sen. Jeff Denham. Sen. Dave Cogdill, Assembly Member Paul Cook and 5