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Honorable Governor Arnold Schwarzenegger Honorable Senate President Pro Tempore Don Perata Honorable Senate Republican Leader Dave Cogdill Honorable Assembly Speaker Karen Bass Honorable Assembly Republican Leader Mike Villines SUBJECT: Protect Transportation, Property Tax, Redevelopment and Other Critical Local Funds When Balancing the State Budget Dear Governor Arnold Schwarzenegger, State Senate and Assembly Leaders: I firmly believe that state transportation funds along with other critical local funds such as property tax and redevelopment revenues should not be used to balance the state budget. I kindly ask that Proposition 42 (2002) funding not be used in order to balance the state budget. The Southwest California region is relying on these funds in order to complete several transportation improvements and projects that are already in place. Furthermore, by transferring these funds to the general fund to help balance the budget would fly in the face of voters who approved Proposition 42 and later Proposition 1A (2006) which, as you know, helps to tighten restrictions on borrowing these funds. I understand that the legislature has targeted these funds for use to help balance the budget. The cities throughout the Southwest California region depend heavily upon these funds to ensure proper services and economic growth for the Southwest California region. The taking or borrowing of these funds at a time when not only our region, but the state as well, is experiencing an economic downturn would be detrimental to all cities that provide public services that we all depend on. I respectively ask that the Governor and the leaders of the State Legislature that are in discussion over balancing the budget to look towards other avenues when trying to balance the state budget. The SWCLC wants to let all parties involved in the State budget discussions to know the potential negative impacts to the Southwest California region if funds named above where to be used when balancing the budget. I am counting on you to find other ways to balance the budget instead of on the backs of California businesses and local governments who would be most impacted by the shifting of these funds.