Schwarzenegger plans to borrow from smog, nail salon funds to ease deficit

Sac Bee ^ | 6/8/08 | Judy Lin

[NormsRevenge]

Nail parlors and smoggy vehicles could get fewer inspections under a little-known borrowing plan proposed by Gov. Arnold Schwarzenegger, according to advocates opposed to his budget.

The governor's latest plan to close a $15.2 billion budget gap in the state's $101.8 billion general fund would dip into pots of money in "special funds" intended to further the state's regulatory and environmental cleanup efforts.

Schwarzenegger is promising to repay most of the $574 million in special funds within three years, but consumer and environmental activists said they are wary of the promise, given the state's spotty repayment record when similar moves were made in the past.

--snip--

Among the special fund borrowing the governor has proposed:

• $25 million from vehicle inspection fees to administer the Smog Check Program.

• $40 million from smog abatement fees to repair or retire vehicles that have failed a biannual smog inspection.

• $2 million from memorial license plate sales to train law enforcement and respond to public threats.

• $10 million from fees and fines collected through card room regulation.

• $10 million from industry fees to inspect salons, barber shops and nail spas.

Other shifts and borrowing would take money intended to protect habitat and prevent oil spills, like the one after the Cosco Busan ship struck the Bay Bridge on Nov. 7.

"If the money is taken away, we won't have funding when we need to protect our air, water and coastal wetlands," said Bill Magavern of the Sierra Club.

Administration officials said the governor is proposing to take reserves that would not hamper existing programs.

And it remains to be seen whether Democrats, who hold a majority in the Legislature, will go along with the proposed loans. While the Senate opposed the loans, the Assembly approved them. ...

[r_barton]

Maybe he will run for Senator in a couple of years and we can get him out of Sacramento.

[444Flyer]

Please don't pay worthless bureaucrats to appear self-important to inspect and fine my nail salon to pay for irresponsible government decisions. I promise you they run a very hygienic operation (or I wouldn't return there) and I can't afford to pay the resulting increased rate for a pink manicure and pedicure. Or worse, have them driven out of business in this inept state.

[rockinqsranch]

I like the idea. It’s precedence setting. I would encourage the State Senate to approve these “loans”.

Hopefully Gov. Schwarzenkennedy can find some more such Environmental and Consumer Advocate special interests to raid.

[rockinqsranch]

Oh yeah...I almost forgot...and stop spending money we don’t have.

[KarlInOhio]

If a corporation started to dip into special accounts (like medical or retirement) and claim that it really shouldn't count on the books, how quickly would the California courts be giving the CEO and CFO the perp walk?

[purpleraine]

$14 bill in services to illegals and can’t figure a way to cut the budget.

[smoketree]

Can’t do that they need the votes.

[goldstategop]

Its like taking out of one account and putting it into the other account. This is a bookkeeping gimmick - not a serious budget solution in California.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[SierraWasp]

The California Republic suffers from people's sufferage of the biggest fool in the history of CA's Governorship!!!

Yes, bigger than either Jerry Brown or Gray Davis!!!