Less than a week after t he League released a legal opinion from a prominent local law firm which concluded that the proposed seizure of almost $1.7 billion in city and county motor vehicle, or gas tax funds, to help close the state's budget deficit is unconstitutional, 67 cities immediately passed resolutions authorizing the city attorney to cooperate with the League, other cities and counties in pursuing litigation to have any raid of local gas tax funds declared unconstitutional and invalid. There are an additional 30 cities poised to take this same action in coming weeks with many more expected.

67 Cities Pass Resolutions to Cooperate with Litigation Against the State

The legal opinion, prepared by the law firm of Nielsen, Merksamer, Parrinello, Mueller & Naylor, LLP, notes 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 concludes that any seizure of these funds would be a violation of the 1974 Proposition 5 and is therefore unconstitutional.

First proposed by Gov. Arnold Schwarzenegger in the May Budget Revise, the Joint Budget Conference Committee approved the raid on June 11 by a party-line vote.

The illegal seizure of local gas tax funds will force some cities to eliminate part or all of their street maintenance operations. Other cities will cut back in other areas, including police and fire services, to pay for basic street repair and maintenance. This proposal puts the safety of all Californians who use the local streets and roads that make up the more than 80 percent of the state's road system at risk.

Beyond the immediate public safety concerns that would result from the loss these funds, are the environmental impacts of this proposal. Reductions in street sweeping and worsening road conditions will increase water pollution runoff to nearby streams, vehicle idling times, greenhouse gas emissions, and respiratory problems for vulnerable populations like children and the elderly.

The League has shared the legal opinion with all legislators, the Budget Conference Committee, and the Governor. A copy of this opinion has been posted on the League's Web site.

A sample resolution can also be found on the League's Web site .