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Schwarzenegger, legislative leaders settle on budget framework (Assembly, Senate votes on Friday)
LA Times ^ | 2/11/09 | Evan Halper and Patrick McGreevy

Posted on 02/11/2009 3:41:29 PM PST by NormsRevenge

Reporting from Sacramento -- Gov. Arnold Schwarzenegger and legislative leaders have settled on the framework of a bipartisan spending plan that would scale back the state's investment in schools, higher education, public transportation and other programs in addition to imposing some temporary tax increases.

The plan, aimed at closing a $42-billion budget gap projected by the middle of next year, was cobbled together in private talks by legislative leaders and is being presented to rank-and-file lawmakers this afternoon, according to participants in the negotiations. Floor votes in the Assembly and state Senate are planned for Friday.

"There is no deal, but there is a common framework," said state Senate Leader Darrell Steinberg (D-Sacramento).

The administration officials and legislative leaders were careful to say the ink is not yet dry on a final deal. But Matt David, Schwarzenegger's communications director, characterized the remaining issues to be worked out as "minor."

Legislative leaders are scurrying to round up votes for the plan; whether they will get enough by Friday is unclear. Republican lawmakers, in particular, are under tremendous pressure from anti-tax activists to reject the plan.

A copy of the fiscal blueprint obtained by The Times shows that the deficit would be wiped out with $15 billion in cuts; $14.4 billion in new and increased taxes on sales, vehicles, gasoline and personal income; $12 billion in borrowing against future profits from the lottery; short-term loans; and various accounting maneuvers. Some of the cuts and borrowing could ultimately be offset by billions of dollars in federal aid that California would receive in the economic stimulus package that passed the U.S. Senate this week and is awaiting final approval in Congress.

Even so, the cuts to state services would be deep and long-lasting.

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


TOPICS: Business/Economy; Crime/Corruption; Politics/Elections; US: California
KEYWORDS: budget; calbudget; california; framework; schwarzenegger

1 posted on 02/11/2009 3:41:29 PM PST by NormsRevenge
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To: NormsRevenge
...in addition to imposing some temporary tax increases...

Where have I heard that before?

2 posted on 02/11/2009 3:46:17 PM PST by Cementjungle
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To: NormsRevenge
The bonus money from the commies in DC would offset CUTS, not taxes.

As a member of the CA GOP, I can say with certainty that I will forever abandon the state GOP if even a SINGLE MEMBER votes for this garbage.

NO NEW TAXES!

3 posted on 02/11/2009 3:59:14 PM PST by Mariner
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To: NormsRevenge

The spending details look like typical budget deception. Borrowing and federal backfill make up most of the deficit except for the temporary tax increases. The sales and income tax increases look especially onerous.


4 posted on 02/11/2009 4:01:15 PM PST by businessprofessor
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To: NormsRevenge

I’m not hearing anything about a tough spending cap. If the Republicans cave in on increasing the money Sacramento steals from citizens without getting a real spending cap in return then I guess they are entirely indistinguishable from the free spending, hand in your wallet, Democrats.


5 posted on 02/11/2009 4:02:39 PM PST by concentric circles
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To: NormsRevenge

According to one report, CA get 38 billion from the Feds on the passing of the stimi bill so really, we are only 4 bill short.

This year - right.


6 posted on 02/11/2009 4:06:42 PM PST by edcoil (Hey, I found my round-tuit, guess I'll go to work now.)
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To: NormsRevenge
Vehicle license fees would nearly double, going from the current rate of 0.65% to 1.15% of the value of a car or truck. The sales tax would increase by 1 cent, raising the rate in Los Angeles County to 9.75%. Gasoline taxes would increase by 12 cents a gallon. And Californians would pay a new surcharge on their personal income taxes, amounting to 2.5% of their total tax bills.

The new and increased taxes would remain in effect for at least two years. If voters approved constitutional spending restraints that the Legislature would put on the ballot in the coming months as part of the budget package, the taxes would remain in place for five years.

The net gain to the state would be a negative number, I'm guessing another billion or so to the bad.

The Marxist Dems disbelieve this with the religiosity of a snake-handling cult, even though the toxic principal of punitive taxation has been proven time and again.

.

7 posted on 02/11/2009 4:11:45 PM PST by Seaplaner (Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
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To: Seaplaner

imposing some temporary tax increases.

**note: there is no such thing as a temporary tax increase.


8 posted on 02/11/2009 4:33:43 PM PST by Reagan69 (No Representation without Taxation !)
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To: NormsRevenge
Even so, the cuts to state services would be deep and long-lasting.

That's a joke, right?

Cuts approved by these clowns are never "deep" or "long-lasting" just as tax increases are never "temporary."

9 posted on 02/11/2009 4:50:05 PM PST by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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