The following press release was issued by Mayor Kevin Johnson's office Friday:

Mayor Johnson to Ask City Council to Declare “State of Fiscal Crisis”

Move Designed to Help Prevent State from Raising City’s Depleted Coffers

SACRAMENTO -- Sacramento Mayor Kevin Johnson will ask the City Council on Tuesday to declare a "State of Fiscal Crisis" because of the city's deepening budget woes.

Sacramento will join more than 100 cities in the state that already have or plan to declare a fiscal crisis. These actions by communities statewide follow a recommendation by the state's Department of Finance to borrow $2 billion in local property taxes to meet the state's budget shortfall, a move Mayor Johnson said he opposes.  

“Siphoning off local property taxes at a time we need every penny will further devastate our community and hurt everyone in our city,” said Mayor Johnson. "The state should keep its hands out of the city's pockets."  

In a deal struck in the early 1990s, the state began to tap local property tax revenues from California cities. The loss of these billions of dollars has left the city in a precarious position, even before the economic downturn drastically cut funds available to the city for services.  

According to Mayor Johnson, the city faces a budget deficit of at least $50 million. Property tax revenues have dipped an additional $7 million since mid-year, putting the city in dire fiscal straits. Barring additional concessions from labor unions, the city will need to unfund as many as 387 full-time positions as part of an overall plan to cut labor costs, services, supplies and maintenance.