SAN FRANCISCO - The top Republican lawmaker in California‘s Assembly said on Wednesday his caucus prefers the state pay for public works projects in cash instead of issuing $68 billion in debt to fund them as Gov. Arnold Schwarzenegger has urged.Schwarzenegger has proposed California issue the debt as part of his $222.6 billion public works plan.
Assembly Republican Leader Kevin McCarthy said his caucus wants a "fiscally responsible" way to pay for infrastructure expansion that lawmakers from both parties and Schwarzenegger agree are long overdue.
McCarthy said Assembly Republicans back a "pay-as-you-go" way to finance infrastructure spending based on a dedicated percentage of the state budget.
By contrast, California‘s Republican governor has proposed the state issue general obligation debt over a decade to raise money to augment general-fund spending on upgrades to such public works as levees, highways, schools and prisons.
"Our proposals will stretch infrastructure dollars to the fullest, and eliminate the roadblocks that have hindered vital project for far too long," McCarthy said in a statement.
The "pay as you go plan" has been embraced by Republicans in the state Senate, said Republican Sen. Chuck Poochigian.
"It gets right to the point of getting a dollar‘s value for a dollar spent," Poochigian said.
Republicans and Democratic colleagues who control California‘s legislature are returning to the state capital after holding retreats to form plans for talks with Schwarzenegger on his infrastructure plan.
The Hollywood icon last month unveiled his plan and has said he is open to lawmakers‘ proposals as he wants them to pass a bill to place a measure on the June ballot that would ask voters to approve $25.2 billion in bonds to jump-start infrastructure spending.
Top Democrats initially said they would work toward a June measure, which would require them to shepherd a bill to Schwarzenegger‘s desk for his signature by mid-March.
However, they want any infrastructure plan to go beyond brick-and-mortar projects to include financing for parks, housing and public transportation systems.
Additionally, they are concerned about costs from issuing $68 billion in debt. Assembly Speaker Fabian Nunez said on Tuesday his caucus could not support issuing that much debt.
Schwarzenegger spokesman H.D. Palmer said the governor and Republican lawmakers are in sync on many infrastructure issues despite differences over financing.
"There are a number of items in their agenda that dovetail with the governor‘s plan," Palmer said, adding that Democrats‘ criticism is "part of the ongoing positive dialogue that‘s been occurring."
It is Schwarzenegger's own party that has offered some of the stiffest resistance, with Republican leaders saying they are concerned about the amount of projected borrowing.
More "bipartisanship" at work. Arnold and the Dems striving for a borrow-and-spend future.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")