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FOR
IMMEDIATE RELEASE
GOVERNOR
FAILS TO MAKE VLF PAYMENT TO BERKELEY -- MAYOR BATES LOOKING AT LAWSUIT
OPTIONS
Governor
Schwarzenegger appears to violate the law by reneging on December Vehicle
License Fee payment. Sudden mid-year cut puts Berkeley’s fire, police and other
services at risk. Berkeley, CA –
Following Governor Schwarzenegger’s decision to withhold most of
Berkeley’s Vehicle License Fee (VLF) funding, Mayor Tom Bates announced
that Berkeley will be forced to make immediate cuts to balance its current
budget. Earlier this week,
the State provided Berkeley only $107,808 of the $331,717 it was owed for
the month of November and announced it may not pay the City anything next
month. Based on current
projections, the City of Berkeley may have to cut as much as $3 million
more from its current year budget. Next year, the City faces an estimated $15 million deficit,
including a $4.6 million in reduced VLF funds. Not only does this
break Governor Schwarzenegger’s promise to protect funding to local
governments, it also appears to violate a law that guarantees the State
provide local governments with the VLF or replace it with other state
funding. Berkeley Mayor Tom Bates
is working with the City Council and City staff to prepare for these
emergency cuts and is also asking the City Attorney to look into legal
action if the Governor does not reverse this policy.
The Council will review budget balancing options at its meeting on
Tuesday, December 16th. “I
am absolutely outraged that the Governor would make these unilateral cuts.
Cities throughout the state rely on this funding to pay for police,
fire, and other important services,” said Mayor Tom Bates.
“If the Governor does not change his position on this, I am
asking our City Attorney to examine our legal options to compel the State
to release this vital funding.” # # #
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