Schwarzenegger's shell game

San Francisco Chronicle ^ | December 19, 2003

[John Jorsett]

GOV. ARNOLD Schwarzenegger moved Thursday to declare an emergency of his own creation.

There is no doubt about the authenticity of the crisis. Cities and counties throughout the state were reeling at the prospect of losing a combined $2.6 billion from the governor's inauguration-day rollback of vehicle license fees.

[John Jorsett]

I love the huffing indignation. The car tax got increased without a vote of the legislature, and the increase would have been overturned in court anyway, forcing the state to come up with billions in refunds. Now the legislature is going to have to vote for a tax increase if it wants one, and they know how that's going to go down with the voters. Tough, guys.

[Ichneumon]

Where's the barf alert?

GOV. ARNOLD Schwarzenegger moved Thursday to declare an emergency of his own creation. There is no doubt about the authenticity of the crisis. Cities and counties throughout the state were reeling at the prospect of losing a combined $2.6 billion from the governor's inauguration-day rollback of vehicle license fees. Local governments had built their budgets with the anticipation of getting that car-tax revenue from the state.

Translation: Rather than an "emergency of Schwarzeneggar's own creation", it's an "emergency" of cities and counties "reeling at the prospect" of not being able to spend as much like drunken sailors at the taxpayer's expense as they had anticipated.

Where will the rest of the money come from?

From a source alien to California: Reduction in spending.

[AbsoluteJustice]

"Its abrupt disappearance forced the locals to contemplate draconian cuts -- including some to public safety."

Isn't this hogwash!!!

Couldn't they find something else to cut out like an entitlement or two? NAAAA they did this so they could raise a stink.

[Stars N Stripes]

"Schwarzenegger has set up a good cop/bad cop act: He takes the bow for the tax rebate, legislators take the heat for the budget cuts to finance it."

GOOD GAWD!!! The people that passed all the spending bills will now have to find a way to cut them!!! Man, that would mean they'd actually have to do some work. This is unacceptable.

[Zack Nguyen]

Arnold's budget deal is a total sham from what I understand. It apparetnly contains no provisions to enforce the deal he made with the legislature. It was a deal made for the voters. Nothing has really been solved yet.

Arnold should ask the question publicly: are the Democrats so addicted to taxpayer money that they'll let the government collapse rather than make cuts?

[Amerigomag]

The car tax got increased without a vote of the legislature

It seems like I can't even get through to even reasonable people.

The car tax was never increased. It's been the same since 1948, 2% of assessed valuation.

The property tax subsidy to the vehicle owner was REMOVED without the approval of the legislature.

[corkoman]

Local governments had built their budgets with the anticipation of getting that car-tax revenue from the state

Ooohhh. They started spending before they got the money. I see.

[bert]

SF homeless had better start a migration to Florida.

[Amerigomag]

The car tax got increased without a vote of the legislature

Again I'm pulling out my hair.

Local governments were owed their share (Section 11001.5 of the Revenue and Taxation Code) of the 2% VLF which is still in force.

The state refused to pay what they were legally obligated to pay in November. Local governements sued Wednesday to force the legislature to pay.

[eureka!]

"Where's the barf alert? "

It's implicit in the source. Same for articles by Molly "Why Can't All Hate W Like I Do" Ivans, Cynthia Tucker, Joey "Kneepads" Conason, Gene's Lyon etc. ad nauseum. ;^) Seriously though, John nails it at #1. The Rats and the complicit presstitutes are lying and spinning to cover their arses...

[AbsoluteJustice]

"The car tax was never increased. It's been the same since 1948, 2% of assessed valuation.

The property tax subsidy to the vehicle owner was REMOVED without the approval of the legislature."

Yes it has increased because as car prices go up so does the registration. Here in AZ I have to pay 300$ for next year as I own a 2001 Blazer. I sent a note with the check to thank the state for taking away one month's worth of groceries from me and my family. They seem to think own SUV = you must be rich. This was a tax on the more well off people of the State and IMO is unconstitutional. It should be a flat rate like I had in Ohio approx 40$ a year. This is utter garbage.

[John Jorsett]

And this is an important distinction because ... ?

[ErnBatavia]

Local governments had built their budgets with the anticipation of getting that car-tax revenue from the state.

I was probably all of thirteen when I learned not to spend money until I had it.

Sheesh - this increaase in tax was in force for all of six weeks, and it's got 'em all bankrupt.

[Uncle Hal]

Folks Arnold campaigned on no increase in taxes, repealing the car tax increase, and taking away illegals right to drivers licenses. He has done what he promised. I will grant you the $15 billion bond issue could be considered a tax but he did what he had to do considering the strong Democratic majorities in the legislature. You notice in the Chronicle article, it bemoans the fact that the car tax is paid in one lump sum unlike most other taxes. As if taking taxes out gradually does not hurt as much as taking it out all at once. These liberals never cease to amaze me.

[Looking for Diogenes]

You are correct. There was a temporary reduction in the VLF due to budget surpluses several years ago. But this is a legally designated revenue stream for local governments.

[wadeintothem]

SF Chron at or near the top of the Left Wing Media Scum list and lack credibility.

A good way to judge something is if the SF Chron hates it, it is good.

[Amerigomag]

And this is an important distinction because ... ?

1) Glance at the title of the thread.

2) Recall the assertion:The car tax got increased.

3)Review the facts:The car tax was never increased. It's been the same since 1948.

4) Note that Schwarzenegger simply skimmed monies from the subsidies of at least two special interest groups (college students and the poor) to meet a legal obligation (sharing the VLF revenue with local governments) when first Davis and then the legislature refused to reimburse local governments for their legal share of the VLF.

No cuts were made in overall spending, no taxes were increased or decreased, just a shell game as the posted title implies.

To Schwarzenneger's credit he did save the state some money. The cost of defending two litigations whoes outcome was certain. The challenge to Davis' illegal reductions in the VLF subsidy and the challenge to Davis' refusal to fully share the VLF after September combined with the legislature's refusal to fully reimburse local governments after Schwarzenneger restored the subsidy to the VLF in November.

[Amerigomag]

They started spending before they got the money. I see..

They, like most sectors of private enterprise started budgeting based on forcast revenues which assumed that most of their customers would pay for the goods/services which the customers had recieved.

When the state missed their October payment, local governments got nervous and considered emergency alternatives. When, these same government bodies read in the newspapers last Saturday morning that the state was going to refuse to not only make the October payment, but also the November payment, they got desperate and sued because they couldn't legally stop the delivery of their goods ("in lieu of" property tax on motor vehicles) because on the binding contract they had enetwered into with thier customer (the state)