Posted on 07/18/2008 6:08:13 PM PDT by Syncro
California Proposes Sales Tax Hike To Fund Transport, Government Services
July 18, 2008 11:32 a.m. EST
Sacramento, CA (AHN) - To close California's $17.2 billion budget deficit, Gov. Arnold Schwarzenegger considered on Thursday hiking the state sales tax and using funds intended for transportation and government services.
State legislators proposed the two measures, which the governor initially described as bad ideas, but he did not rule out adopting the measures to avoid a cash crisis in California.
The lawmakers plan to close the budget gap by collecting $5.6 billion income tax increase on the rich and borrowing $1.1 billion allocated for transportation projects and $1.4 billion for local governments. Under California laws, the borrowed money must be repaid within three years at high interest rates.
To ensure the $2.5 billion is paid back, Schwarzenegger told the Los Angeles Times, "I literally would have to guarantee that with a sales tax or something... Where else do we get the revenues that someone can be saying so freely we can pay back this $2.5 billion we are borrowing?"
Local officials were alarmed by the proposals to use the money already appropriated for specific purposes.
"The money the would take is going to fund a huge amount of projects... It would be a complete violation of the spirit of Proposition 1A," Jim Earp, executive director of the California Alliance for Jobs, told the Los Angeles Times.
The governor, on Tuesday, admitted he was frustrated by the slowness of the state Legislature to pass California's budget on time. To hasten approval of the state budget, Schwarzenegger made several suggestions: setting a spending cap based on revenues over the past 10 years; automatic spending reductions during a fiscal crisis; borrowing against future state lottery sales; and creating a rainy-day fund.
"If we don't have budget reform, we're basically saying to the people of California... that even though we have the worst budget system, we're not willing to fix it," the governor told the San Francisco Chronicle.
I bolded a couple of statements above. The first one, borrowing against the lottery. What a farce. The lottery approved to use funds raised for the schools. The Governor at the time took the amount of money given to the schools from the lottery OUT of the schools budget so they did not benifit at all.To hasten approval of the state budget, Schwarzenegger made several suggestions: setting a spending cap based on revenues over the past 10 years; automatic spending reductions during a fiscal crisis; borrowing against future state lottery sales; and creating a rainy-day fund.
As far as the rainy day fund goes, the SF school district was in fiscal trouble, and $20 million from the "rainy day fund" was given to them.
How much is left in this fund?
As I have mentioned before, the General Fund is Schwarzenegger's mad money and he wastes it right and left.
The amount of money stashed in the Gen fund is astronomical what with the 7-8% tax on every dollar spent on gasoline in this state.
They want to borrow from taxpayer money that the voters specifically voted for because it could NOT be touched for anything else.
Same ol' same ol'.
"Show me just what Mohammed brought that was new, and there you will fommand to spread by the swoind things only evil and inhuman, such as his crd the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will fommand to spread by the swoind things only evil and inhuman, such as his crd the faith he preached." - Manuel II Palelologus
Can’t cut “essential” services like flying (crime committing) illegal aliens back to their home countries. Buses aren’t good enough?
There apparently is not one single program or function of the state government that is non essential.
the over-taxed affluent are abandoning california,
which in turn, worsens the budget problem.
when the state’s fortunes are good, they never save; they enlarge the state government.
then, when the fortunes turn downward, they tax more.
Cuck Pahliforyna. We’re leaving as soon as we can.
"Show me just what Mohammed brought that was new, and there you will fommand to spread by the swoind things only evil and inhuman, such as his crd the faith he preached." - Manuel II Palelologus
All this will do is drive more liberals out of Kalifornia to screw up other places as badly as they have screwed themselves in Kalifornia by voting for liberal Dimocraps.
Wouldn't that be Phallicfornia?
I'm so confused.
And the governor's proposal on the lottery is not just about borrowing against the existing program but allows for a huge increase in lottery activities.
Did ya catch Arnie's sales pitch yesterday on his proposal?
He insisted his lottery proposal was not borrowing. "Borrowing means that you have to pay back. But this is a gift from the future," he said.
"Show me just what Mohammed brought that was new, and there you will fommand to spread by the swoind things only evil and inhuman, such as his crd the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will fommand to spread by the swoind things only evil and inhuman, such as his crd the faith he preached." - Manuel II Palelologus
Arnie wants to sell reverse mortgages on every revenue generating activity the state has. Anything to mask the gross incompetence (and thievery) he has exhibited since becoming Governor. Remember his 2004 rants about needing to “leverage” more dollars? He’s doin’ a fine, fine job given the current debt load. :-/
Too bad he didn’t take his first promise to CUT, CUT, CUT seriously.
"Show me just what Mohammed brought that was new, and there you will fommand to spread by the swoind things only evil and inhuman, such as his crd the faith he preached." - Manuel II Palelologus
Liberal Tahquiya? (It's okay to lie to the populice!)
"Show me just what Mohammed brought that was new, and there you will fommand to spread by the swoind things only evil and inhuman, such as his crd the faith he preached." - Manuel II Palelologus
ah-nuld
is sucha
joke!
i can’t look at him.
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