Posted on 02/18/2009 12:42:06 AM PST by americanophile
Reporting from Sacramento -- As California's government continued its grinding downshift toward insolvency, efforts to close the state's nearly $42-billion budget gap hit a new snag late Tuesday as Republicans in the state Senate ousted their leader.
Around 11 p.m., a group of GOP senators, unhappy with the higher taxes that Senate leader Dave Cogdill of Modesto agreed to as part of a deal with the governor and Democrats, voted to replace him in a private caucus meeting in Cogdill's office. Shortly before midnight, it was still unclear who would replace him. Cogdill's ouster could be a major setback to budget negotiations. Cogdill was a lead negotiator on the budget package and had committed to voting for it. If he were removed from his leadership post, a new Senate minority leader would likely try to renegotiate the deal, which lawmakers spent three months forging.
Meanwhile, the Senate remained deadlocked after hours of debate, still without the final Republican vote required to achieve the two-thirds majority for approval of more than $14 billion in new taxes.
The frenetic day had begun with legislators carting sleeping bags, pillows and suitcases to work. Sen. Ron Calderon (D-Montebello) brought a bottle of cologne. Republican Sen. Sam Aanestad, an oral surgeon from Grass Valley, passed out toothbrushes. Cots were ordered from the state Office of Emergency Services....
(Excerpt) Read more at latimes.com ...
Call me crazy, but if they committed to cutting all unnecessary spending and lowering tax rates (especially corporate tax rates) wouldn’t that instill enough confidence among investors to sell bonds to cover the budget gap?
I mean, that’s how governments raise dough without raising tax rates in the short-term: borrow it. But nobody loans to a financial mess. So why wouldn’t they just try to get their house in order to attract investors? What’s all the hemming and hawing about?
The guy deserves worse but it will due for now. I can’t believe that any Republican would vote for this plan.
Way to go! Now do the same to all RINOS!
They won’t, and S&P just downgraded California’s bond rating to the lowest in the nation.
Hollingsworth replaces Cogdill.
CA has borrowed so much money, it becomes a joke.
Link? this is fascinating.
Announced on the Senate floor (they convened at 12:30. A few made comments praising Cogsdill, then they announced Hollingsworth. Cogsdill just made a short thank you speech (his staff, etc) and it’s quiet again.
All spending is necessary according to our state government. You wouldn’t believe the redundancy that exists across regulators. If California and the counties would hire some efficiency experts to examine every aspect of regulation in this state they would find $10 billion in savings.
The solutions they have put forward are absurd. They will drive unemployment up and create an even bigger budget cap in 18 months. They have no clue that they are creating giant disincentives to start new business, encouraging other businesses to close or leave. That of course means less capital and less willingness to take risks to start new businesses here, and will only result in more hardship for people and of course the state. We are on a course for ruin. We already have higher unemployment than the national average and the largest budget shortfall of all the states which is some 25% of the budget itself! This cannot be fixed by tax increases as California is already one of the highest tax states and on the wrong side of the Laffer curve - more taxes will result in diminishing returns at this point. Our problems can only be fixed by a massive rethink (reduction) of the purposes and endeavors of the state itself, more outsourcing, and more consolidation of services and regulators.
Darn. They need a CA C-span, or something. Those of us out in the hinterland can’t see what’s happening, and it is like missing the last 2 minutes of the superbowl.
Maybe you guys should pass a bond.
;)
I hear ya!
Instead of headlines that read “One Senate vote needed for passage” I want to see the one that says
“27 Democrat Senators Vote to Destroy California Economy through Unprecedented TAX Hikes!
I am not an efficiency expert, but...
If CA can define what government is, what it should do, and what percent of the state GDP it is allowed to spend on the aforementiontioned missions - including all sources of spending -
I can save CA at least $50B a year, and I only want a 10% fee to do it.
Wow, Dave only lasted 10 months. Did Villines need to get the boot, too ?
Here’s what is happening on the Senate Floor, as far as I can tell.
They convened at 12:30 to vote on taxes. The statements about replacing the leader took a bit of time, but they went through the roll and took all the votes. All Pubbiess voting voted NAY, including the squishy Maldonado. 5 Senators were MIA, 3 Pubs and 2 Dems. Since then, one dem (Wolk) has come forward with an Aye.
That leaves the following four votes:
• Correa (D) who voted for it before but at one time said he would not approve taxes
• Ashburn (believed to be voting in favor)
• Cogdill (the leader, just ousted, who negotiated this deal on behalf of the caucus as a member of the “big 5”)
• Cox (previously believed to be the crossover vote but who stood strong against it in yesterdays vote — or the day before).
They seem to be waiting for these missing members to show up.
If three of those 4 vote for this thing, we’re screwed!
Devore tried to organize an outing of Villines and was smacked down, unanimously.
Senate update:
Steinberg now says that the Senate is going into recess but to remain on call (”Please stay in the building”)
Thank you for posting that, I’m embarassed to say I wouldn’t have realized the reality of the situation if you didn’t make it so clear. Only 50% vote needed for budget without tax hikes...
May I humbly recommend the excellent The Proper Role of Government, by Ezra Taft Benson.
He was a former President of the LDS Church, but the essay is well worth the read anyway. There's a bit of LDS scripture in there, but you can easily skip over it if you like.
Correction — OUSTING, not outing. LOL.
Don’t need any of those rumors going around. ;-)
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