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CITIES TAKE FIRST STEPS TO ADDRESS REVENUE TAKING BY THE STATE

RALEIGH, NC: At a news conference today, member mayors of the North Carolina Metropolitan Coalition announced the formation of two task forces to address Governor Easley's announcement to hold back more than $200 million in revenues from local communities. These revenues come from taxes and fees on utility franchises, alcohol sales, and inventories and are collected by the State on behalf of cities and counties to then be returned to each local government on a regular schedule. The next payment, which Easley is threatening to escrow, is due in mid March.

If implemented as currently proposed, Easley's plan could result in severe cutbacks affecting every one of the state's 526 cities and 100 counties.

"If these revenues are taken away from us, there is no doubt that our public safety and our public health and welfare as well as our fiscal health will be compromised in every corner of North Carolina," said the Coalition's president, Charlotte Mayor Pat McCrory. "In some communities, police officers and firefighters may have to be laid off. In other places, it might be the men and women that give us safe, clean drinking water or treat our sewage or collect garbage."

Cary Mayor Glen Lang raised concern over local jurisdictions' good credit. "If our savings accounts are wiped out or if lenders believe that the State can come in at any time and steal them away, local governments won't be able to borrow the money needed to build schools or widen roads or expand water treatment plants.

The Coalition's new Special Budget Task Force will, within the next 30 days, review the State government budget to identify ways for the Governor to balance the budget without taking the local governments' money. Members of this group include Durham Mayor Bill Bell, Winston Salem Mayor Allen Joines, Salisbury Mayor Susan Kluttz, Hickory Mayor Rudy Wright, and Carrboro Mayor Pro Tem Alex Zaffron.

The Coalition's new Legislative Task Force will work on the long-range issue of developing concrete ways for local governments to be assured of getting revenues from the State from year to year. This group will be chaired by Raleigh Mayor Charles Meeker and includes Greensboro Mayor Keith Holliday and Chapel Hill Mayor Kevin Foy. Mayor Meeker said, "We have got to find a way to prevent the state from impounding our revenue in the future."

Today's action comes after a 90-minute meeting yesterday with Easley set up by the Coalition's 19 big city mayors and also included leaders of the NC League of Municipalities and the NC Association of County Commissioners. Last night and earlier today, the Coalition also met with State Treasurer Richard Moore and Senate Majority Leader Tony Rand as well as the secretaries of the departments of Commerce, Transportation, and Environment and Natural Resources.

Established in 2001 and comprised of 19 of the largest cities in North Carolina, the North Carolina Metropolitan Coalition was formed by the municipal mayors to encourage the continued development of the urban areas in North Carolina as livable, environmentally sound, and economically viable centers. Members of the NC Metropolitan Coalition were in the Triangle Wednesday and today for a previously scheduled session to continue work on priorities for the state's coalition of cities. See www.ncmetros.org.