Posted on 02/18/2008 9:43:20 AM PST by NormsRevenge
SACRAMENTO – With every budget proposal, Gov. Arnold Schwarzenegger repeats his mantra.
“I will not raise taxes on the people of California because they are already paying enough taxes,” Schwarzenegger said last month as he unveiled his plans to attack a potential $14.5 billion budget gap.
Nearly three weeks later, he reiterated that pledge. Speaking to newspaper publishers, Schwarzenegger said, “Raising taxes is out of the question because you can't tax your way out of this problem.”
Yet, by substituting fees in lieu of taxes, Schwarzenegger proposes to reach into the pockets of motorists, disabled Medi-Cal recipients and homeowners for at least $761.5 million.
Among those is a new $11-per-year assessment on vehicle registration fees that would raise $385 million annually to put an additional 120 California Highway Patrol officers on patrol and improve communications systems.
“These funds will not go into a general fund black hole,” promised Lt. Scott Howland, the CHP's liaison to lawmakers.
Democrats, who control both houses of the Legislature, could adopt new fees on a simple majority vote without Republican support. In contrast, a two-thirds vote – requiring some GOP backing – is necessary to raise general taxes.
Schwarzenegger's pursuit of fees is part of a 2008-09 budget that also proposes a 10 percent across-the-board cut. But he also has resisted raising fees to protect some popular programs, notably parks.
The Republican governor's administration rejects criticism that he is disguising taxes as fees.
Finance Department spokesman H.D. Palmer said “a fee is a levy on a specific industry or group that finances a service or a benefit to that industry or that group. A tax is a broad-based levy – like those on personal income or sales – to finance general government purposes. What we are talking about here are fees.”
Senate President Pro Tempore Don Perata, D-Oakland, said the governor “has been all over the field” when it comes to juggling the budget. He said that the state must “make economies” in spending but also that there needs to be a new look at how taxes and fees are raised. He said Sacramento must recognize that the public has more confidence in local leaders when it comes to spending and taxes. He said local governments should be given more revenue-raising authority – and the responsibility that comes with it.
“We're going to have to look at making it easier for local governments to raise specific fees for services because they're never going to be able to get the money from the state,” Perata said.
Republicans are not convinced. Additional fees – even for law-enforcement programs – should be a last resort, they say. The focus should be on restraining spending, GOP lawmakers say.
“I'm not particularly thrilled with the idea. . . . It's irresponsible for the Legislature to increase fees to cover these gaps caused by the state spending too much,” said Assemblyman George Plescia, R-San Diego.
Under Schwarzenegger's proposal, property insurance premiums would increase about $10 annually to bring in $125 million for fire protection, and college students would have to write bigger checks to pump a combined $234 million into the budgets of the California State University and University of California systems.
Schwarzenegger's budget also could squeeze the blind, aged and disabled who receive Medi-Cal medical coverage. To recoup what the state has to pay the federal government for lower-income Medi-Cal Part B recipients, the governor proposes to bill them $96.40 monthly. About 56,000 Californians who earn between $1,120 and $1,620 per month could be affected.
The governor also proposes greater hits in some obscure accounts, primarily to cover increased cost-of-state operations.
Among those: Businesses that sell alcohol would be charged an additional $15 for Alcoholic Beverage Control Board operations. Companies would have to absorb higher workers compensation charges of about 69 cents for every $1,000 in premiums. Separately, 1,200 companies with higher than usual injury rates could be billed as much as $7,500 more for special inspections.
Politics aside, the $11 vehicle registration fee for more CHP officers is not without risk. Draws on the motor vehicle account have exceeded revenues by 10 percent. A projected $230 million deficit could grow as new car sales slump and demands, such as contract-required pay raises for officers, climb, according to a Finance Department memo.
“It is anticipated for some time that the motor vehicle account would need a fee increase or major cuts in programs,” the memo warns.
Nevertheless, in the current budget Schwarzenegger borrowed nearly $15.5 million from the plummeting motor vehicle account to pay for some of his global warming initiatives.
Today, to maintain the momentum of his campaign to slow global warming and cut reliance on fossil fuels, Schwarzenegger is looking at another source of funds to raid.
He proposes to borrow $64 million over the next few years from a recycling account supported by deposits that consumers pay every time they buy a beer or bottled water. The state raised the deposit on most cans and bottles by a penny, to 5 cents, last summer.
Schwarzenegger also proposes to hire two Air Resources Board staff members. Their job: implement new fees on business as part of efforts to curb greenhouse gas emissions linked to global warming.
Vehicle registration: $11 per year to hire CHP officers.
College fees: 7.4 percent to 10 percent for UC and CSU students.
Medi-Cal: $96.40 per month for thousands of disabled Medi-Cal recipients.
Property insurance: An average $10 fee for fire protection.
Workers compensation: 69 cents per $1,000 worth of premiums.
Fire inspections: Nearly $140 per hour for state fire marshal inspections in areas that do not have fire departments. State currently does not charge for inspections in those areas.
Liquor licenses: $15 for Alcoholic Beverage Control Board operations.
SOURCE: California Department of Finance
Hmmm....I can think of some more:
$500 for a public school teacher’s license
$1000 admission fee for illegal immigrants
$50 administration fee for welfare recipients
10% reporting fee on all campaign contributions
So, the headline is a lie.
Taxes are going up.
Man, carrying the illegals is getting harder and harder. Just last week they moved to shutdown 14 health centers. And the illegals just keep on coming. This is no longer a democracy.
Regards
This is a real gem:
We should be doing exactly the opposite. We should be taking away the power to tax or charge fees. Otherwise, there is no way to control spending as every level of government thinks it has an endless supply of money available. Each level of government should be limited to a fixed percentage of sales, property, or income, and then HAVE TO LIVE WITHIN THOSE REVENUES. In California, a 4% income tax and 5% sales tax at the State level, a 1% property Tax and 1% sales tax at the County level, and a 0.5% property tax and a 0.5% sales tax at the City level would bring in the same revenues as the existing bizarre mesh of taxes and fees.
I love your list!
How about a 10% fee on Union Dues.
$100/mo administrative fee on all Government employees.
There. Fixed it.
IMHO:
A fee is something paid for using an *optional* gubermint service.
For example: I’d like to see a $100 per call fee for every call made to a residence for 9-1-1.
I can sum all of this up in two words, “Schwarzenegger Sucks” Just another lying crock of S*** politician - this one with an Austrian accent. First we had Davis the extortionist, now we have Arnold the BS artist.
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