Business Wire
May 14, 2009

Led by Mayor Dennis Donohue, the Salinas City Council, in a unanimous decision May 12, 2009, voted to oppose any attempt by state officials to balance California’s budget using city revenues.

Salinas Mayor Donohue said, “I am appalled the state would consider using the emergency provisions of Proposition 1A to 'borrow' money from California cities. This is an abuse of power at the expense of already weakened cities. Let the state put its own house in order first!”

Donohue said, “The anticipated impact of the state withholding our tax revenues would be an estimated $4.8 million dollars. There is no question it would lead to immediate layoffs including police and fire. There is no doubt in my mind that any officer of state government who supports this kind of confiscatory policy does so at the risk of their political career.”

Continuing, Donohue said, “I will not endorse candidates for state office, be it Governor, State Senator or State Assembly unless there is a clear commitment to address Pension Reform, Prison Reform, and excessive regulations that hamper economic development. Here in the City of Salinas our employees contribute to their benefits packages and we will keep reviewing that element of compensation in order to better manage those costs.”

Finally, Donohue concluded, “I do support the passage of the six fiscal measures before us on the state ballot next Tuesday with the proviso that the State acts decisively to prepare to address its structural issues. This will anesthetize the patient before surgery but will not be a cure.

As California residents we need to recognize part of the reform needed includes the fiscal impact of the referendum process which reduces some near term financial flexibility on the part of the legislature. What’s more, I especially support the call for a Constitutional Convention and suggest we consider starting over, literally and symbolically in Monterey, the state’s first capitol and site of the original constitutional assembly in 1849.”