Governor Holds Back Local Money Today: Cities & Towns Across North Carolina Cut Projects and Services RALEIGH, NC –. The money didn't show up today and our cities and towns are feeling the pain. For many years, March 15 was the day that North Carolina's cities and towns have received their municipal franchise tax payments. But because of state government budget woes, Governor Easley has escrowed this year's March payment of $45 million, along with several other state collected local revenue payments, in case they are needed to balance the state's budget. Some cities and towns are laying-off employees due to the loss of funds. Asheboro will lay off 15 of its 309 employees next week – 2 from the police department. NC Metropolitan Coalition Vice Chairman, Greensboro's Mayor Keith Holliday commented, "Our cities are getting a double whammy – first we had to adjust our budgets and services because property and sales taxes are down due to the recession, now we have to cover the Governor's withholding of revenues the state collects for us. Many of us are canceling important projects, dipping into savings and reducing services just to make it through the end of our budget year on June 30." But local governments are not sitting still. On March 20th, the mayors and elected officials in the NC Metropolitan Coalition will meet in Raleigh to respond to the challenge by generating ideas as alternatives to withholding local funds in order to balance the state budget. "We will continue to bring our cities together and work to find a solution to the ongoing problem we face - we can't have our local governments dragged into the state's budget crisis every year," said Coalition Chair, Charlotte Mayor Pat McCrory. " We respect the challenges the Governor faces this year, but we have to put a stop to this practice of holding back on local government money. Local government exists in the same economy as the state and we provide basic services to the same citizens – holding our funds is just passing the buck." The payment the Governor is withholding today used to be collected at the local level as compensation by utilities to cities and towns for the use of municipal right-of-way. The utility taxes are now collected at the state level in order simplify and standardize the rate and collection process. But because the revenue passes through the state, the Governor was able to escrow the funds as part of his effort to meet his obligation to balance the state's budget at the end of the year. The utility franchise tax is often the third most important tax revenue for cities and towns after the local property and sales taxes and provides funds for such critical functions as garbage collection, police and fire protection and road maintenance. "We are facing the second year the Governor has withheld local funds, so we are beginning to work on next year's city budget with a weary eye towards the state collected revenues," said Mayor Harper Peterson of Wilmington, " We just don't know what to expect from state government anymore – and this is in the face of our own revenue problems stemming from the recession." 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 will be meeting at the Albert Coates Local Government Center at Lane and Dawson St. in Raleigh on Wednesday, March 20 to discuss the budget situation. There will be a press availability at the conclusion of that meeting, at approximately 2:00pm. For more information, please contact : Beau Mills, Director NC Metropolitan Coalition www.ncmetros.org