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R4 -v QUOTESfrom page 8 ............................................... "Santa Clara County officials are feeling a bit of relief about the county's immediate future after Gov. Gray Davis revised his upcoming budget to lessen the financial blow to local jurisdictions." Sacramento Bee, 5/16/03, Lenders support budget — But experts say the state's real solution is structural change. "The lenders and Wall Street analysts who will play a key role in helping fill California's giant deficit called the governor's newly revised budget plan credible, but warned it lacks insurance that the.state won't burrow deeper into a budget hole in future years." San Francisco Chronicle, 5/16103, Davis says tax increase key to lowering state deficit Revenues would be used to repay bond debt. "Gov. Gray Davis paints a dire picture of what will happen if the Legislature fails to approve his budget plan quickly, including his proposal for a temporary half - percentage point increase in the state sales tax." The Santa Rosa Press Democrat, 5/16/03, Davis debt model criticized — New York used bonds to get out of '75 crisis, and city's still paying for it. "A New York City bond program, the model for Gov. Gray Davis' plan to finance part of the state's budget deficit, has been overtaken by the city's recent financial problems and may require the sale of new bonds to pay off the old ones." The Torrance Daily Breeze, 5/16103, Governor's budget calls for higher taxes, service cuts. "Saying the state's fiscal crisis has deepened in recent months, Gov. Gray Davis revised his budget Wednesday to seek higher taxes on tobacco, cars, consumer products and the wealthy, while also planning to borrow more than $10 billion to finance part of the state deficit." The Contra Costa Times, 5116/03, Budget Swing Votes Elude Harried Davis. "Gov. Gray Davis began meeting with opinion makers Thurs- day to rally support for his budget, but back at the Capitol lawmakers from both parties spurned the proposal and predicted the road to a new spend- ing plan could be long and rugged." The Merced Sun Star, 5/17/03, City gets mixed message on budget. "There's good news and bad news for the city of Merced. The governor's revised budget now calls for providing the city's general fund nearly $3 million that was expected to be lost as a result of California's budget crisis. But many other city funding sources are still expected to be cut, including more than $500,000 in Merced Redevelopment Agency funds." Riverside Press Enterprise, 5/17103, Cities' Agencies Would Feel Pinch — A Proposal to Shift Funds Would Mean Fewer Redevelop- ment Projects for the Area. "Financial demands in Gov. Davis' state budget proposal could hinder redevelopment efforts throughout the state and leave cities without the money to pay bond debts from past projects, agency leaders said Thurs- day." The Stockton Record, 5/18/03, Vehicle -Tax Plan Praised — Fee Hike Would Spare Drastic Local Cuts. "Under the governor's revised spending plan, Stockton leaders won't be talking about laying off police officers and firefighters as they had under Gray Davis' original, much harsher plan." Oakland Tribune, 5118/03, Crisis Imperils Local Bonds. "Gov. Gray Davis' aides are wam- ing the state's budget deadlock may clobber cities, counties, schools and other local agencies on a new fiscal front this summer — their ability to borrow for a spectrum of local needs." Los Angeles Times, 5/19/03, Lawmakers Work for a Budget Deal — Some Republicans are considering whether to seek a spending cap or other concessions to get a plan passed. "With Gov. Gray Davis' proposed state spending plan on the table, leaders of both political parties are quietly searching for compromises that would secure a balanced budget before California runs out of cash." Los Angeles Times, 5/19/03, Feds' Benevo- lence Doesn't Add Up for California Taxpay- Continued on Page 10 Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS /PAGE 9