California Gov. Arnold Schwarzenegger, wants to invoke a 2004 law to force municipalities to loan the state 8% of their property tax revenues.
Administrators of already cash-strapped cities and counties said the loans would force even deeper cuts in services. Fewer cops and fire engines would be on the streets, they said, and parks and libraries would be closed more often. And some local governments would be forced to lay off workers to keep their budgets out of the red, they said.