Contact: Jessica Smart (209) 571-5125
No. 08-214
August 1, 2008

Modesto Mayor Jim Ridenour Will Cut Up the

Local Government Credit Card at Tuesday Press Conference

State Legislators Need to Balance the State Budget with State Funds

Not Borrow Local Government, Transportation or Redevelopment Funds

Modesto, Calif. — It’s time for the state of California to cut up the Local Government Credit Card. Modesto Mayor Jim Ridenour will host the mayors from the eight other cities in Stanislaus County to symbolically cut up Local Government Credit Cards at a press conference on Tuesday, August 5, to send a clear message to state lawmakers that borrowing local government, transportation or redevelopment revenues is irresponsible.

The Mayors of the nine cities in Stanislaus County are coming together in a unified stand against the State Legislature and their plan to take local tax dollars – deeming it fiscally irresponsible. The Mayors recognize the difficult fiscal decisions facing the legislature; however, they feel the legislature has other solutions at hand which do not create the need to take local property tax and transportation funds.

The quality of life in each California city is dependent on the services we provide such as police, fire, street and road maintenance and much more. Like many cities in California, Modesto is facing many of the same budget challenges as the state. The economic downturn has resulted in a decline in sales tax and property tax revenues. Rising energy costs have also drained city coffers. Already, Modesto has had to tighten its belt. When preparing its Fiscal Year 2008-09 budget, the City was forced to cut over $13 million in order to maintain a prudent reserve level. In addition to eliminating staffing at a fire station, 21 sworn police positions have been left vacant as well as an additional 35 employee positions that are funded through the General Fund. Many summer pool and park programs were eliminated as was funding for new equipment including emergency response vehicles and funding for the City’s tree preservation program. For the foreseeable future, we expect that the downturn in revenues will continue; as such, monthly evaluations will be conducted and it is anticipated that further reductions will be necessary to compensate for reduced revenues.

“While I recognize that Proposition 1A gives the state the ability to borrow property tax revenues when the Governor declares that the state faces a severe fiscal hardship, I do not believe that condition exists, said Mayor Ridenour. “Just as my fellow City Council members and I have faced and made hard fiscal decisions recently, the legislature should also act responsibly and balance the state budget through reductions in the state’s spending programs. Taking local tax dollars is fiscally irresponsible and deepens the state’s structural deficit.”

California voters have made clear that they do not want the state to borrow to close the massive deficit. Four years ago, 84 percent of voters passed Proposition 1A to end the reckless seizing of local revenues. In 2006, 77 percent of voters told the Legislature to fix its own problems and protected transportation dollars.

Modesto residents are encouraged to attend a press conference on Tuesday, August 5 at 2 p.m. in the Tenth Street Plaza located at 1010 Tenth Street to witness the cutting up of the Local Government Credit Card.

Mayor Ridenour wants the Legislature to do real budget reform, not shift its problems to the backs of California cities. Go to www.cacities.org to find out how much money the state has taken from Modesto since 1991.

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To contact the City of Modesto Public Information Office, 
call Jessica Smart at (209) 571-5125. Email: jsmart@modestogov.com