SAN DIEGO, CA -- (Marketwire) -- 05/27/09 -- League of California Cities President Judy Mitchell will join San Diego Mayor Jerry Sanders and dozens of other California mayors and council members at San Diego's Fire Station 35 located at 4285 Eastgate Mall on Thursday, May 28 at 11 a.m. to speak out against a proposed state raid of local property taxes and transportation funding to help balance the state's $24 billion budget deficit.

Since 1991, state officials have taken more than $10 billion in local property taxes to meet state obligations, currently costing cities more than $900 million each year. Now state officials are considering forcing local governments to "loan" the state $2 billion in local property tax revenues as well as seizing $750 million in the local share of the gas tax to help close the state's budget deficit. These types of actions to fund today's budget is part of what got California into its budget mess in the first place and only deepens the deficit. The League says it needs to be stopped if California is to ever have a responsible budget.

Gov. Arnold Schwarzenegger has consistently said that it is fiscally irresponsible to borrow to meet the state's budget obligations and he knows how devastating the impacts would be on cities if the state seizes local property tax revenues or takes valuable gas tax funds to meet the state's obligations. The proposal to divert the local share of the gas tax to pay off the state's highway bonds would kill local infrastructure projects and rob communities of valuable jobs -- the classic "anti-stimulus" proposal.

Growing numbers of high level state elected officials are denouncing borrowing to fix that state's budget gap including Treasurer Bill Lockyer, State Controller John Chiang and Senate Republican Leader Dennis Hollingsworth.

"The League is working on every level to protect vital city services for the millions of Californians who live in cities. Asking local governments for a bailout of the state's budget is like making a sub-prime loan to a borrower who has a terrible credit rating and can't afford his daily expenses. Robbing communities of gas tax funds that have been used for years to repair local streets is short-sighted and will harm both the state's economy and the state's revenues. This is bad policy from the start and California's cities shouldn't be forced to continue rescuing the state from its self-inflicted financial misfortunes," said League President and Rolling Hills Estates Mayor Judy Mitchell.

The mayors and council members at Thursday's news conference in San Diego will emphasize how their cities are already in fiscal distress and that forcing cities to loan the state money now will have real dire consequences for public safety and other vital services. Cities have been making tough budget cutting decisions such as employee layoffs and furloughs, reduction of public safety services, project delays and program reductions.

"We want our state leaders to hear loud and clear that taking our local property tax and gas tax revenues will mean more layoffs, fewer police officers, few fire fighters, fewer potholes filled, fewer programs to keep our youth engaged, shorter library hours and more. Cities have to balance their budgets and can't shift the burden on to someone else's shoulders. It's time for the state to bear the burden of its budget mess and leave cities to provide the services our residents rely on us to provide," said League Executive Director Chris McKenzie.

To date, more than 150 cities have declared a state of severe fiscal hardship. These actions reflect the impacts that the stagnating economy has had on California's cities due to serious declines in local tax revenues.

The League launched www.SaveYourCity.net this week as an interactive Web portal for mayors, council members and concerned members of the public to tell policy makers how communities will be devastated if the state takes the $2 billion from local governments. The Save Your City Facebook page gives fans the latest updates on the campaign and network with others who are concerned about the devastating impact a state raid of local property tax revenues would have on their city services.

Established in 1898, the League of California Cities is a nonprofit statewide association that advocates for cities with the state and federal governments and provides education and training services to elected and appointed city officials.