League of California Cities Launches WWW.CUTUPTHECARD.COM to Send a Message to State Leaders: Balance the State Budget

SACRAMENTO, CA, Jul 31 (MARKET WIRE) --
Go to www.cutupthecard.com to find out how much money the state of
California has taken from your city since 1991*. This interactive portal,
launched today by the League of California Cities, is loaded with
resources about the long term state seizure of city revenues and its
impact.

The Web site features:

-- A tool that lets visitors calculate how much the state has taken from
their city since 1991 and send a "debt statement" to their local
legislators;
-- Information about the state's history of seizing local revenues for
its own budget;
-- Statements by California Legislators;
-- Clips and statements from Gov. Arnold Schwarzenegger denouncing
borrowing from local government; and
-- News articles, editorials and video clips.

California cities can't afford to have the state once again seize
local revenues or transportation funds and still provide the same level of
critical services such as police, fire, and street maintenance. Cities
across California are facing many of the same budget challenges as the
state. The economic downturn has stalled sales and property tax revenues,
and rising energy costs are draining city coffers.

Cities don't have the option to borrow from any other level of government;
they just tighten their belts. If the state takes local revenues as a
budget solution, cities will be forced to tighten their belts even further
and Californians will suffer as a result.

League President and San Diego City Council President Pro Tem Jim Madaffer
held up a mock Bank of Local Government Credit Card at a press conference
on Monday, July 28, in his city, driving home the message that it is time
to cut the local government credit card up once and for all.

"The voters have told state leaders to stay away from local funds,"
Madaffer said. "Borrowing these funds will do nothing more than plunge the
state further into debt and worsen the state's structural deficit," he
said. "Lawmakers need to solve the budget crisis without relying on
further borrowing that would destroy local services."

Chris McKenzie, League of California Cities executive director, said that
www.cutupthecard.com was created to provide information about the budget
process and highlight the legislators who have said publically that they
do not intend to use local government revenues to close the budget
deficit. He also acknowledged the Governor's continued support for local
government and belief that the state can't keep taking local government
revenues.

"In recent weeks several legislators have assured the people of California
that they are not considering using local government revenues to balance
the state budget. We appreciate their understanding of the danger to the
state of doing more borrowing and the important function of cities in
providing the services our residents rely on such as police, fire,
transportation and much more," said McKenzie. "The Governor also has been
a big supporter of cities and an opponent of borrowing from local
governments to solve the state budget crisis. He has stated repeatedly
that the state budget should be balanced with state funds and the state
should not rely on local funds that are needed for critical local
services."

McKenzie added, "Senate President Pro Tem Perata and Assembly Speaker Bass
also have expressed similar sentiments, and we commend them for opposing
the politically expedient option of 'borrowing' from local governments or
transportation funds to fill the state's budget gap. It is refreshing to
hear these outstanding state leaders insist that the state finally face
its budget demons rather than shifting responsibility to local
governments."

California voters made it clear that they do not want the state using
local revenues to fund state government. Four years ago, 84 percent of
voters passed Proposition 1A to end the constant state seizure of local
revenues. Just two years later, in 2006, 77 percent of voters told the
Legislature to fix its own problems and protected transportation dollars.

The Web site, www.cutupthecard.com, was created as a forum to assist city
officials and residents in taking action to protect their local
communities from state raids. Founded in 1898, the League is an
association of California city officials who work together to enhance
their knowledge and skills, exchange information, and combine resources
so that they may influence policy decisions that affect cities. Its
mission is to restore and protect local control for cities through
education and advocacy to enhance the quality of life for all
Californians.

*This amount is the cumulative net loss through FY 2007-08 from
Educational Revenue Augmentation Fund (ERAF), net of Proposition 172
funds and Citizen's Options for Public Safety (COPS) funds.

Contact:
League of California Cities
Eva Spiegel
(916) 658-8228
Cell (530) 400-9068

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