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9-A-3 LOCAL UPDATE As reported last week in Priority Focus, city officials and their LOCAL coalition partners have conducted several Aditorial board briefings re- cently, explaining the risk to local services from various state budget proposals. A recent meeting with the San Gabriel Valley Tribune editorial board produced quick results, seen in the editorial which appeared in the paper July 12: California must be fair with VLF If auto owners are forced to swallow raises in the Vehicle License Fee, then this bitter medicine must be used to keep the patient alive. That patient, our local cities, should be able to function at current service levels. THE BUDGET CRISIS - SOME PRESS QUOTES Editorials The Los Angeles Times, 7/16103, Red Ink and Recalcitrance. "This long -term debt being used to paper over the Legislature's failures — that is the real problem . San Francisco Chronicle, 7/16/03, Budget Games Consume Capitol. "There are no ex- cuses left for lawmakers, only bills to pay. The shameless political posturing by both sides has frittered away any reasonable choices and left California facing years of balloon payments on backdoor loans. It's time for the governor and leaders of both parties to stop holding the state hostage before the financial disaster widens." Leave Our Community Assets Local, a lobby- ing group for cities and counties, has a point: They did not create the state budget deficit. They should not be `bailed out" by the state when the cities have reduced local spending at the same time the state Legislature has increased spending. The cities have been bailing out the state. "They say we will bail you out Bail us out of what ?" Covina City Manager Paul Philips told our editorial board. From 1982 to 2002, a period of 20 years, state general fund spending rose 21 percent. During the same 20 -year time period, cities reduced spend- ing by 9 percent. If the VLF is indeed restored in full to rates in force before cuts under Gov. Pete Wilson, that money legally must flow to cities. But because there is a delay in collection, the state is saying it may delay funding cities. leaving cities in that gap would be unfair and devastating to local services. The state must deal fairly with cities. Our Mission Restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians. San Diego Union Tribune, 7/16/03, Partisans Must Get a State Budget Done. "It's time for the grown -ups in Sacramento to get a budget done before the cash - strapped state, which is already running on empty, shuts down." Riverside Press Enterprise, 7115/03, Bud- get Deadlock Isn't Business As Usual. "Last year set the record for legislative deadlock on the budget, and these aren't business -as -usual times. The debt grows at an estimated rate of $20 million a day, and government is facing a shutdown." The San Jose Mercury News, 7115/03, Striking a Deal, Not a Solution. "A deal is not to be confused with a solution. A solution would set California on a solid financial foundation." San Francisco Chronicle, 7/15/03, Budgeting, Nevada - style. "The Nevada issues strike a familiar chord in Sacramento, where the two- thirds margin needed to pass the state budget is beyond reach in a partisan deadlock, and education funding is among the potential victims. Gov. Gray Davis let it be known he might go to court to em- power a simple Democratic majority to overcome the Republican minority's veto of any tax - hiking budget deal to address a $38 billion two -year shortfall." The Inland Valley Daily Bulletin, 7/14/03, Borrowing Plan Should Not Rest on Local Funds. "Once again, California lawmakers in a financial bind have their eyes on local government Continued on Page 5 Visit the League's Official Web Site-- www.cacities.org PRIORITY FOCUS /PAGE 3