Escrow of Local Government Revenues SUBJECT:Escrow of Local Government Revenues A Letter Sent to Mr. Franklin Freeman & Mr. John Merritt, Senior Assistants to the Governor: Dear Sirs: Last month the members of the North Carolina Metropolitan Coalition met with Governor Easley, you and other senior members of his administration. We discussed the Governor's decision to escrow certain local government revenues as part of his actions under a declaration of a fiscal emergency. The mayors and other elected officials sincerely appreciated the opportunity to share their thoughts and concerns with the Governor and hope to keep these important lines of communication open during this critical period in North Carolina's history. They support the Governor's goal to come out of this challenging time stronger and better – growing and better prepared for the future. The purpose of this letter is to follow-up on that meeting. Since that time, the mayors established a special committee to help the full Coalition better understand the state budget crisis and develop ideas and proposals for the full Coalition to consider in response to this difficult time. Following a meeting of the special committee, the full Coalition met on March 20 to discuss the current situation. At that meeting, the Metropolitan Coalition's full Board of Directors made a series of findings and recommendations (attached). While the Board recognizes, and respects, the difficult situation the Governor faces, they reiterate their opposition to his decision to escrow critical municipal revenues. It is the Coalition's position that the state budget crisis should be solved using state funds, not critical local revenues. Further, the Coalition finds that there are more appropriate funds available to the Governor, which he should consider in lieu of the escrowed municipal revenues. In response to the Governor's offer to consider all ideas, the Coalition Board has developed a list of potential alternatives to the escrow of local funds (attached). They ask that we consider these, and other options, during the course of our weekly senior level intergovernmental meetings. Finally, in order to continue the important collaborative process begun when local leaders met with the Governor, the Coalition Board of Directors would like to request an opportunity to meet with the Governor during the first week of May in order to review the situation. Together we can develop successful solutions to the challenges we face in North Carolina face, in the short and long term. Sincerely yours, Beau Mills, Director For more information, please contact : Beau Mills, Director NC Metropolitan Coalition www.ncmetros.org