Mayors identify over $500 million of surplus state funds to balance state budget Urge Governor to return city taxpayers money RALEIGH - Last month Governor Mike Easley announced that he was withholding $209 million of local government revenues. Today, the mayors and city leaders in the Metropolitan Coalition met to further discuss this action. These local leaders have identified other options available to the Governor that they believe he should look to in order to balance the state budget as an alternative to holding city taxpayers money. The effort to identify other options instead of holding city funds was in response to the Governor's invitation at a meeting with local officials last month. He asked city and county officials to generate other ideas to balance the state budget without using these local revenues. "The Governor has held city taxpayers money – money used for basic services such as police and fire protection, garbage collection and street maintenance, Charlotte Mayor McCrory said after the mayors' meeting. "Our taxpayers have already paid this money and now many city services and projects will have to be reduced unless the Governor returns our city money." Mayor Allen Joines from Winston Salem, who along with Durham Mayor Bill Bell has studied other options said, "We have identified state surplus funds available to the Governor that we believe he should use, individually or in combination, to balance the state budget instead of using our city money. We believe these funds are available to the state now, maybe repaid with state revenues later." These surplus state funds or options include: State Tobacco Settlement funds – up to $200 million available Hurricane Floyd Funds – up to $150 million Highway Trust Funds – as much as $90 million surplus funds without impacting any road projects on the drawing boards. Governor's One North Carolina Fund – $14 million of new money for economic development Sale of State Property – as much as $30 million in Raleigh area alone. Shortened workweek for some state employees (those making over $30,000/yr) - $113 million for shortened workweek equal to six days for the rest of the state fiscal year. The mayors will be conveying their ideas to the Governor in writing. They hope to be able to discuss their ideas with the Governor and his staff in the beginning of May, after state officials have had a chance to carefully review the recommendations. "We certainly respect the difficulty the Governor faces in balancing the state budget. Local governments are taking dramatic actions to balance their budgets too," said Mayor Susan Kluttz from Salisbury. "In Salisbury we are looking at layoffs and reductions in critical services, in fact I have been told Asheboro is laying city employees off this week. We just don't want the Governor pass the state budget problem off to us while we are struggling with a recession - when we can least afford to handle it." City officials across North Carolina are taking actions to cover the Governor's withholding of local revenues. Nearly all are canceling or postponing important capital projects – many including police substations, fire stations. Cities are also canceling summer youth programs, reducing or eliminating payments to a variety of local service and non-profit organizations, such as chambers of commerce and homeless programs. Numerous cities are eliminating street resurfacing programs and right of way maintenance. 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 Raleigh Tuesday and today for meetings, including discussions with county and business leaders and to continue their work together to address the state's withholding of local funds. For more information, please contact : Beau Mills, Director NC Metropolitan Coalition www.ncmetros.org