CA: GOP offers up alternative budget; Senate stays in session this week

San Diego Union-Tribune ^ | August 31, 2008 | Ed Mendel

[calcowgirl]

SACRAMENTO – Anti-tax Republican legislators, blamed for what will soon be a record two-month state budget deadlock, answered their critics yesterday, proposing an alternative budget balanced without a general tax increase.

The Republican plan replaces a one-cent sales tax increase backed by Gov. Arnold Schwarzenegger and Senate Democrats with $2 billion in lottery-backed bonds, $1.5 billion in spending cuts, and $1.5 billion in new tax revenue.

The Republican plan, unlikely to quickly end the deadlock, was criticized for making painful spending cuts and failing to end years of state deficit spending.

“We believe our plan is the responsible way to balance the budget without raising taxes, while protecting education, public safety and health care for the poor,” said Senate Republican Leader Dave Cogdill of Modesto. “It includes reforms to eliminate the deficit and contains no borrowing.”

The plan was sketched after Senate Republicans, who blocked a sales tax-based budget Friday, were challenged by Senate President Pro Tem Don Perata, D-Oakland, to present an alternative budget.

Republican aides said it may take up to a week to put the new budget plan into bill form ready for a vote. Perata said the Senate, scheduled to adjourn for the year today, will remain in a budget special session this week.

Perata continued to call on Schwarzenegger, a Republican, to get the two Senate GOP votes needed to send the sales-tax-based plan to the Assembly.

A budget needs a two-thirds vote, which requires at least two Republicans in the Senate and six in the Assembly if all of the Democrats vote for the measure.

Schwarzenegger issued a statement applauding the Republicans for “moving the debate forward.” But, he said, the plan proposed by Republicans in both houses simply would push the deficit into next year.

“We were sent to Sacramento to solve problems once and for all – not kick the can down the alley for others to deal with in the future,” Schwarzenegger said.

Republicans said their plan calls for a spending cap, opposed by Democrats, that would control future deficits. Schwarzenegger wants a large “rainy day” reserve and authority for governors to make midyear spending cuts.

The Republican plan's general fund would spend $101 billion, less than the $103.4 billion in the governor's plan. The Republican plan would have a deficit of about $5.5 billion next year.

Among the additional tax revenue in the Republican plan: temporary suspension of tax deductions for past business operating losses, $1 billion; penalties for late limited-liability corporation fees, $360 million; and a tax amnesty, several hundred million dollars.

[EagleUSA]

Anti-tax Republican legislators, blamed for what will soon be a record two-month state budget deadlock...
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Well, it is a good thing that SOMEBODY in the Taxifornia government cares about fiscal sanity and the tax-and-spend insanity of the leftists. Fiscal conservatives remember when Taxifornia bonds had a JUNK rating due to the out-of-control fiscal condition of the state. Responsible voters have not forgotten either, albiet we are a minority in Taxifornia.

[rabscuttle385]

The Republican plan, unlikely to quickly end the deadlock, was criticized for making painful spending cuts and failing to end years of state deficit spending.

It's laughable how nobody ever thinks about the pain that tax increases cause to the taxpayer. Everyone just sighs and hopes that the tax increases will somehow fall on "rich people."

[NormsRevenge]

“We were sent to Sacramento to solve problems once and for all – not kick the can down the alley for others to deal with in the future,” Schwarzenegger said.

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Did he say that before or after he borrowed 15 Billion? or after he offered borrowing from future lottery proceeds? or (insert whatever the heck he is pushing that moment and needs money to fund aka CIRM or GW) ..

While he was not the root cause of the problem to start with, he certainly has thrown his fair load and more on the fire..

The Republicans are even using some of his own earlier proposals,, if the dems still don’t bend, then here’s to a stalemate to the general election and beyond..

[goldstategop]

They won't bend on a hard spending cap or on taxes. That's the litmus test for the Rat party.

"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

[marsh2]

From a county perspective (CSAC source), the Republican proposal relies upon deeper cuts in health and human service programs, which will result in back-door increased costs to many of our counties through indigent health programs, general relief, and other safety net programs. It relies upon continued cuts in Medi-Cal which affects county-owned hospitals and clinics, as well as local providers. There is an increased hit on Redevelopment Funds, which affects those counties with redevelopment agencies. It calls for an undefined hard spending cap. Such a cap is problematic for counties because it does not address the $1 billion gap between the cost of administering social service programs and budgeted funds.

I am befuddled why the Republicans keep wanting to destroy the fiscal health of County government to balance the budget. (Previously, there was a proposal to take County transportation - Prop 42 and prop 1A funds. There was also a proposal to raid Prop. 63 and Prop 10 funds.) If they are going to take away County funds to provide services, then they have got to cut back the service programs, rather than expect Counties to borrow money to continue to provide them at 20% rates. In doing so, they have to examine the resultant impact on incarceration and mental health programs as consumer populations cease to be diverted into social programs rather than incarceration or hospitalization.