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9. A -/0 M4YR f=pa9e9 00090060608 IADf =Pa9et . *000 to preserve our local services," said Riverside Mayor and League First Vice President Ron Loveridge. "But we also need a commitment that the state will cwn- tin:ie to provide cities and counties with the VLF bacidiill during the time it takes to restore the VLF." Transportation Funding. The May Revision does not "take" the sales tax on gasoline dedicated to repair local streets and roads by prior legislation and Proposition 42. It does, however, modify a proposal in the Governor's January budget to suspend payment of these revenues to local governments, and instead diverts these funds to the state general fund. The January proposal was to suspend $1.145 billion from the sales tax on gasoline earmarked for local trans- portation projects. The May proposal instead would provide sufficient funds to meet the cash require- ments of projects that received allocations prior to December 2002, an amount pegged at $207 million. The remaining $938 million is suspended, becoming a loan to the state general fund that is to be paid back in later years. Public Libraries. The May Revise eliminates $14.7 million in Public Library Foundation funding to offset the restoration of library Transaction Based Reimbursements. Structural Reform Essential for League Support The League plans to urge legislators and the administration to support a legislatively- sponsored ballot measure to strengthen constitutional protec- tions for local revenues, as the price of League support for a budget package that includes temporary tax increases to pay for long -term borrowing to finance the debt, or "contributions" of local revenues to help balance the state budget. (See "California City Delegates Pass Resolution on State Budget ".) "Our core belief is that the legislature and gover- nor must make long -tens structural and fiscal reform a top priority to prevent the future raiding of funding for local services," said League Executive Director Chris McKenzie. "We know the voters are with us. We hope that these state leaders will heed the will of the voters and take this opportunity to implement some real fiscal reform that protects local services." For more details on the Governor's May Revision, visit the League website at www.cacities.org /budget. PALE 10 /PRIORITY po= Scheduled to coincide with the May 14 release of Governor Davis' May Budget Revise, over the two days LAD participants heard from high- ranking state officials, lobbied their legislators in dozens of special meetings, hosted a legislative reception and rallied at a highly successful State Capitol Press conference. As the state scrambles to cover the budget shortfall, LOCAL members carried the message to legislators that, as League President John Russo remarked "We're not here just fighting for dollars or turf, we fighting for something precious: local democracy and the ability to serve the people of California." Opening Session Praises Coalition —Takes Governor's Budget to Task The LAD event opened May 14 with a packed ballroom of coalition members, who watched highlights of the Governor's press conference announcing his May Budget Revise, and heard reactions to it. (For details on the impacts of the budget proposal on local services, see article on "May Revise Proposal Shows Promise. ") Speaking to the spirit of the LOCAL banner, "Many Faces, One Voice," John Russo declared, "We really are a team. All of us working at the local level are doing the people's work —work that really matters." Senate Republican Leader Jim Bruits echoed McKenzie's sentiments, calling on Governor Davis to bear in mind that "stealing from local govern- ment is not a spending reduction." He additionally pointed out that the Governor's budget proposal allows for an $8 million structural deficit to remain in place, and called for moratoriums to be placed on legislation that drives jobs out of California or increases burdens on local government. The meeting was adjourned to free up the afternoon for the visiting delegates to lobby their representatives. A reception was held at the Sheraton in downtown Sacramento that evening, celebrating the LOCAL coalition and offering an opportunity to mingle with legislators and city officials from every corner of the state. The Continued on Page 12 Visit the Iengue'a Official %b Site-- www.cacities.c¢g