Sep. 3, 2008 ( delivered by Newstex) -- As the state tries to figure out this year's budget (already two months in), cities are concerned about legislators patching the state's red ink with funding that usually goes towards city services such as public safety and redevelopment funds. Addressing that could-be problem, the state's nine largest cities are sending letters to Gov.

Schwarzenegger and the respective Democratic and Republican leaders. Simply said, "Stop balancing the state budget on the backs of cities!" . Dear [leader]: We are writing to express our concern regarding several of theproposals being considered to balance the state budget. The mostsignificant of those concerns centers on proposals that would divertlocal revenue or remove reimbursements for services mandated by theState. We urge you to refrain from suspending, borrowing, or sweeping therevenue that cities depend on for critical operations, services andinfrastructure. Today's uncertain economic climate has placed severeburdens on our own budgets, and we have already made sacrifices throughour own budget process. If the State passes additional costs through tocities, our ability to deliver basic services, including providing forpublic safety, will be at risk. Proposals to permanently sweep funds from redevelopment agenciesthreaten to undermine one of the key tools that cities have to grow theeconomy. Since redevelopment funds are highly leveraged, and becauseagencies frequently bond against future revenue to assist in thedevelopment of the most catalytic projects, even a small redirection oflocal redevelopment dollars to Sacramento would worsen this ripple andour prospects for economic recovery. Finally, while we understand the need to discuss procedural reformsthat will help state government enact future budgets, using the policygoals contained in Assembly Constitutional Amendment 19 as a startingpoint for negotiations is shortsighted. Among other considerations, theprovisions of the amendment would statutorily eliminate the right ofcities to generate their own revenue and repeal the state's obligationto reimburse local governments for state mandated programs. If theseprovisions are enacted into law, we would be unable to make the tough,long-term decisions that were necessary to adopt our own budgets thisyear. We encourage you to examine and exhaust all other options beforeturning to cities through the policies described here to help solve thestate budget crisis. Sincerely, ALAN AUTRYFresno Mayor RON DELLUMSOakland Mayor GAVIN NEWSOMSan Francisco Mayor BOB FOSTERLong Beach Mayor HEATHER FARGOSacramento Mayor CHUCK REEDSan Jose ANTONIO R. VILLARAIGOSALos Angeles Mayor JERRY SANDERSSan Diego Mayor MIGUEL PULIDOSanta Ana Mayor Newstex ID: GOTH-0007-27866066

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