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CA: Secret budget deal borrows from taxpayers
Sac Bee ^ | 9/15/08 | Jim Sanders

Posted on 09/15/2008 4:50:47 PM PDT by NormsRevenge

With little or no public input, California lawmakers are expected to vote late today on a closed-door weekend budget deal that depends largely on borrowing billions from taxpayers.

A key element of the deal would increase by 10 percent the amount of income taxes withheld from working Californians, and from taxpayers who earn income from investments.

The maneuver would generate about $3.8 billion to ease the budget crunch, but the plan calls for providing future refunds to affected taxpayers.

Lawmakers were rushing to the Capitol this afternoon to vote on ending the state's 11-week budget standoff with a last-minute deal consisting of more than a dozen bills expected to total hundreds of pages.

The compromise cobbled together by legislative leaders scraps Gov. Arnold Schwarzenegger's plan for a temporary sales tax hike and would largely hold the line on additional program cuts.

But the $15.2 billion budget shortfall would be bridged largely by advancing revenues to be collected in future years, shifting or borrowing money from other state funds and employing accounting maneuvers. The plan would generate immediate revenue but leave gaping holes in future budgets.

The pact would end the longest budget standoff in state history, 77 days, but it virtually would assure that red ink will flow in future years.

The scramble to rush a legislative vote on the the deal means that the public - and lawmakers themselves - will have no opportunity to read and comment on details of the spending plan.

"It's probably the worst way to pass a budget," said Tracy Westen, chief executive officer of the Center for Governmental Studies in Los Angeles. "I think voter confidence in the Legislature is very low. This is not going to help."

(Excerpt) Read more at sacbee.com ...


TOPICS: Business/Economy; Politics/Elections; US: California
KEYWORDS: borrows; budgetdeal; california; secret; taxpayers

1 posted on 09/15/2008 4:50:47 PM PDT by NormsRevenge
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To: NormsRevenge
No one in California is happy with it. There are no budget cuts, no entitlement reforms and no hard spending cap. But its the best that could be achieved this year.

"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

2 posted on 09/15/2008 4:53:06 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: NormsRevenge
The plan would generate immediate revenue but leave gaping holes in future budgets.

Youse either pays now or youse pays later...

3 posted on 09/15/2008 4:53:52 PM PDT by Virginia Ridgerunner (Sarah Palin is a smart missile aimed at the heart of the left!)
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To: NormsRevenge

If the national economy gets worse, CA is headed for bankruptcy.


4 posted on 09/15/2008 4:55:18 PM PDT by umgud
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To: NormsRevenge

Kalifornia is a wonderland for public employees and their unions.


5 posted on 09/15/2008 5:01:01 PM PDT by 386wt (Be free and don't die!)
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To: umgud
If the national economy gets worse, CA is headed for bankruptcy.

Sometimes, you've gotta raze before you can raise.

6 posted on 09/15/2008 5:07:18 PM PDT by CE2949BB (McCain/Palin 08)
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To: goldstategop
I consider the Republicans successful effort to prevent an outright tax increase as a victory.

Especially when Arnie was trying his best to cut them off at the knees.

God knows they deserve a small victory occasionally.

Cheers to them.

7 posted on 09/15/2008 5:07:29 PM PDT by keat
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To: NormsRevenge

AW! What happened to the liberal utopian example? Having trouble paying your bills. The reason is not one of those rats running the show can balance thier own check book but we let the rats into the cheese factory and you get who you vote for! Kinda wish Ronnie was back MMMMMMMM.....


8 posted on 09/15/2008 5:07:29 PM PDT by ronnie raygun (IF YOU ARE NOT CONSERVATIVE BY 35 YOU HAVE NO BRAIN. W CHURCHILL)
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To: goldstategop

1. END “defined-benefit” pensions to unions!
2. END forced “political” use of public union dues — to DEMOCRATS!

There is no incentive for these crooks to cut State spending, when THEY (the Dems) get a ‘cut’ of any INCREASE — through union wage hikes, via the “political expenses” part of union dues!

CORRUPT, IMMORAL, CA DEMOCRATS!
THEY’RE BLEEDING US DRY!!!


9 posted on 09/15/2008 5:12:00 PM PDT by 4Liberty (discount window + moral hazard = bank corporate welfare + inflation tax)
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To: NormsRevenge
Stupid tax payers.

Wait till the Fed/gov reaches 1 zillion in debt...They'll send trucks around to scoop up all your used belonging, and sell them countries like Brazil and Outer Mongolia.

10 posted on 09/15/2008 5:15:36 PM PDT by dragnet2
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To: NormsRevenge

They make Lehman Bros look like Berkshire Hathaway.


11 posted on 09/15/2008 5:16:06 PM PDT by VRWC For Truth (Palin is sugar on a turd ... No mas Juan "Traitor Rat" McAmnesty)
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To: NormsRevenge
So they jack up the witholding, you fill out your tax forms and get a bigger refund in April the following year? It seems like the easy thing to do would be to fill out a state W-4 and drop your witholding by 10% and get a smaller refund next year.
12 posted on 09/15/2008 5:19:35 PM PDT by KarlInOhio (Whale oil: the renewable biofuel for the 21st century.)
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To: NormsRevenge

Keep the RATS in power and we will never have a low tax State. Balance budget, what a joke. When will Kalifornians learn. Never!!!!


13 posted on 09/15/2008 5:27:01 PM PDT by Logical me (Oh, well!!!)
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To: NormsRevenge
There is an easy way around this...

Every year around Labor Day I do my first income tax workup. I figure out how much I will be paying in taxes both state and fed. We then adjust our withholding for the rest of the year. I always make sure I paid more than the year before to prevent any penalties if I make a mistake. My refunds are rarely more than $100 from either source.

Any financially responsible adults should do this.

14 posted on 09/15/2008 7:08:44 PM PDT by Starwolf (I rode to work today, did you?)
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To: Virginia Ridgerunner
Nah - this is Kalifornia we're talking about. Youse pays both comin and goin, and in between as well.
15 posted on 09/15/2008 7:17:52 PM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: umgud
If the national economy gets worse, CA is headed for bankruptcy.

There ... fixed.

16 posted on 09/15/2008 7:20:04 PM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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