Stop the State Raid of Gas Tax Funds
LEAGUE BOARD VOTES UNANIMOUSLY TO CHALLENGE RAID OF LOCAL GAS TAX FUNDS
Bypass of Voter-Approved Ballot Propositions at Issue
The news media flocked as more than 100 city officials joined with the League of California Cities’ board of directors to announce the board’s unanimous vote to take legal action, if necessary, to challenge the constitutionality of a key component of the budget proposed by the Budget Conference Committee to seize $1.7 billion of the local share of the highway users, or gas, tax that is used to maintain local streets and roads. The press conference was held on Thursday, June 25, at the Sacramento Convention Center during the League’s policy committee meetings.
State leaders have proposed bypassing the voter-imposed restrictions to use local gas tax funds to pay off the state’s highway bonds and reimburse the state general fund—a questionable move that seems designed to give the appearance of having a balanced budget. The action comes as close to 130 have already passed resolutions directing their respective city attorneys to cooperate with the League, other cities and counties in pursuing litigation to have any raid of local gas tax funds declared unconstitutional and invalid.
Nielsen, Merksamer, Parrinello, Mueller & Naylor, LLP, a law firm specializing in ballot measure and election matters, concluded that in both 1974 and 1998 voters imposed restrictions on the state’s ability to use gas taxes for debt service on bonds and to divert local gas taxes for the state general fund. The opinion has been shared with all legislators, the Budget Conference Committee, and Gov. Arnold Schwarzenegger. It is online at www.cacities.org/HUTAopinion
Thursday’s press conference carried a simple yet strong message: DON’T KICK THE CAN DOWN THE ROAD!
The Sacramento Bee’s Capitol Alert shortly after the news conference posted “California cities vow to sue if state siphons gas tax funds” www.sacbee.com/1089/story/1977103.html. The League expects considerable coverage later Thursday and Friday based on press attendance at the event.
During the press event, League President Judy Mitchell was flanked by a very large group of city officials all holding “Save Your City” signs. President Mitchell told reporters that the Legislature should adopt a credible budget that is balanced with a realistic mix of state, not local revenues.
When she finished her remarks she passed Modesto Mayor and League Second Vice President Jim Ridenour a can labeled with Save Your City on one side and a quote from the Governor on the other side that read: "I urged the legislature to take this seriously and to not ... kick the can down the road, as they have done in the past but let's solve the problem." Fresno Bee, June 11, 2009.
Mayor Ridenour said that his city will literally go dark if gas taxes are seized because they will be forced to shut off 12,000 street lights. He told reporters that cities are not a state program but separate governments that have suffered the same drastic revenue losses as the state.
The Modesto mayor ended his remarks by giving the can to Clovis City Council Member Nathan Magsig. The council member explained to reporters how his county’s (Fresno) unemployment rate has skyrocketed to 15.4 percent and that the public works projects funded with gas tax are imperative to keeping folks working. He ended his remarks by urging the Legislature to reject these unconstitutional job killing proposals because the promised savings are illusory and will only cause widespread economic harm.
League Executive Director Chris McKenzie was the final speaker and summarized the League’s position.
Press present at the news conference included:
The Sacramento Bee
Capitol Weekly
KFBK-AM
KCRA-TV
Fox 40-TV
Public CEO
Capitol Television News Service
Capitol Public Radio also conducted a phone interview with Chris McKenzie following the news conference. The Riverside Press Enterprise is running a story on Friday, June 26.
Bypass of Voter-Approved Ballot Propositions at Issue
The news media flocked as more than 100 city officials joined with the League of California Cities’ board of directors to announce the board’s unanimous vote to take legal action, if necessary, to challenge the constitutionality of a key component of the budget proposed by the Budget Conference Committee to seize $1.7 billion of the local share of the highway users, or gas, tax that is used to maintain local streets and roads. The press conference was held on Thursday, June 25, at the Sacramento Convention Center during the League’s policy committee meetings.
State leaders have proposed bypassing the voter-imposed restrictions to use local gas tax funds to pay off the state’s highway bonds and reimburse the state general fund—a questionable move that seems designed to give the appearance of having a balanced budget. The action comes as close to 130 have already passed resolutions directing their respective city attorneys to cooperate with the League, other cities and counties in pursuing litigation to have any raid of local gas tax funds declared unconstitutional and invalid.
Nielsen, Merksamer, Parrinello, Mueller & Naylor, LLP, a law firm specializing in ballot measure and election matters, concluded that in both 1974 and 1998 voters imposed restrictions on the state’s ability to use gas taxes for debt service on bonds and to divert local gas taxes for the state general fund. The opinion has been shared with all legislators, the Budget Conference Committee, and Gov. Arnold Schwarzenegger. It is online at www.cacities.org/HUTAopinion
Thursday’s press conference carried a simple yet strong message: DON’T KICK THE CAN DOWN THE ROAD!
The Sacramento Bee’s Capitol Alert shortly after the news conference posted “California cities vow to sue if state siphons gas tax funds” www.sacbee.com/1089/story/1977103.html. The League expects considerable coverage later Thursday and Friday based on press attendance at the event.
During the press event, League President Judy Mitchell was flanked by a very large group of city officials all holding “Save Your City” signs. President Mitchell told reporters that the Legislature should adopt a credible budget that is balanced with a realistic mix of state, not local revenues.
When she finished her remarks she passed Modesto Mayor and League Second Vice President Jim Ridenour a can labeled with Save Your City on one side and a quote from the Governor on the other side that read: "I urged the legislature to take this seriously and to not ... kick the can down the road, as they have done in the past but let's solve the problem." Fresno Bee, June 11, 2009.
Mayor Ridenour said that his city will literally go dark if gas taxes are seized because they will be forced to shut off 12,000 street lights. He told reporters that cities are not a state program but separate governments that have suffered the same drastic revenue losses as the state.
The Modesto mayor ended his remarks by giving the can to Clovis City Council Member Nathan Magsig. The council member explained to reporters how his county’s (Fresno) unemployment rate has skyrocketed to 15.4 percent and that the public works projects funded with gas tax are imperative to keeping folks working. He ended his remarks by urging the Legislature to reject these unconstitutional job killing proposals because the promised savings are illusory and will only cause widespread economic harm.
League Executive Director Chris McKenzie was the final speaker and summarized the League’s position.
Press present at the news conference included:
The Sacramento Bee
Capitol Weekly
KFBK-AM
KCRA-TV
Fox 40-TV
Public CEO
Capitol Television News Service
Capitol Public Radio also conducted a phone interview with Chris McKenzie following the news conference. The Riverside Press Enterprise is running a story on Friday, June 26.
posted by City Manager @ 7:13 AM
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