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FOR
IMMEDIATE RELEASE
BERKELEY CITY COUNCIL AUTHORIZES LAWSUIT TO RECOUP LOST VLF FUNDING Berkeley was forced to make $4.7 million in mid-year cuts after State failed to make required VLF payment. Lawsuit seen as insurance policy if Governor fails to make promised payments. Berkeley, CA - In move designed to hold the State’s feet to the fire, the Berkeley City Council unanimously voted today to authorize the City to join a lawsuit to recoup lost Vehicle License Fee (VLF) payments owed to cities and counties. Earlier today, Governor Scharzenegger used emergency powers to make budget reductions. The savings have been directed to cities and counties to make up for the lost VLF funding. Meeting in a special executive session, the City Council voted to authorize the suit to protect against the Governor reneging on this latest promise. “I am encouraged that the Governor is taking action to provide this vital source of funding. However, several times he has promised to provide this money but then failed to do so,” said Mayor Tom Bates. “Until our funding is provided in full, we will continue to prepare legal action.” Last week, the State provided Berkeley only a fraction of it was owed for the month of November and announced it may not pay the City anything next month. Following that sudden mid-year cut, the City Council was forced to make $4.9 million in emergency budget reductions. Those reductions included cuts to police and fire. By voting to sue over the lost revenue, the City is in good company - more than a dozen cities and counties have already officially authorized lawsuits. # # #
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