Media Advisory: League of California Cities Holds News Conference June 25, 2009 on Illegal State Seizure of Local Gas Tax Funds

Market Wire, June, 2009

What:   The Budget Conference Committee approved Gov. Arnold
        Schwarzenegger's proposal to seize almost $1 billion in
        local gas tax revenues to help give the appearance of a
        balanced state budget. This seizure is unconstitutional
        according to legal analysis prepared by Nielsen, Merksamer,
        Parrinello, Mueller & Naylor, LLP, and shows that in both
        1974 and 1998, voters imposed restrictions on the state's
        ability to use gas taxes for debt service on bonds and to
        divert local gas taxes for the state general fund.

        The opinion has been shared with the Governor, members of the
        Legislature and all Budget Conference Committee members. The
        opinion is posted on the League's Web site at
         www.cacities.org/HUTAopinion .

Where:  Sacramento Convention Center, West Lobby
        1400 J Street, Sacramento

When:   Thursday, June 25, 2009, 10:30 a.m.

Who:
        --  Judy Mitchell, president, League of California Cities and
            Rolling Hills Estates mayor
        --  Chris McKenzie, League of California Cities executive director
        --  Jim Ridenour, League of California Cities second vice president
            and Modesto mayor

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.

Contact: Eva Spiegel (916) 658-8228 Cell: (530) 400-9068