G.O.P. Shakeup Could Derail Budget Deal in California

Associated Press ^ | February 18, 2009

[reaganaut1]

SACRAMENTO, Calif. (AP) -- A delicate budget fix crafted by Gov. Arnold Schwarzenegger and legislative leaders was on the brink of collapse early Wednesday after Republicans in the Senate ousted their leader. The late-night coup could derail already strained budget talks by requiring them to renegotiate with a new Republican leader.

The current package containing billions in tax hikes, spending cuts and borrowing took leaders more than three months to put together as the state tries to pass a midyear budget fix and avoid fiscal calamity.

Lawmakers viewed the leadership change as a major setback after they fell short by just one GOP vote, but Democratic leader Darrell Steinberg said he didn't want to speculate what it would mean for the package.

''We're after one reasonable person who puts California first,'' Steinberg said as Republicans voted to remove Sen. Dave Cogdill.

Republicans replaced Cogdill with Sen. Dennis Hollingsworth, R-Murietta, whom they saw as more capable of resisting tax increases.

''I don't want to see a tax increase passed,'' Hollingsworth said Wednesday shortly after assuming the leadership post. ''I think the majority of my caucus doesn't want to see a tax increase passed in the package. We'll see what happens in the next few hours, next few days.''

The pressure on California lawmakers to pass a spending package intensified, as layoff notices went out Tuesday to state agencies, hundreds of public works projects were on the brink of losing state funding and the Legislature appeared unable to break a political logjam.

[TenthAmendmentChampion]

current package containing billions in tax hikes, spending cuts and borrowing

There are no spending cuts, just "promises" to cut the rate of increase.

[Primetimedonna]

“I’m no great fan of Arnold, but with the mess he has to work with in Sacramento, I’m not sure anyone could improve things very much. The only route Arnold could have taken was to go independent of the legislature and make repeated public statements and speeches, presenting the truth. He chose not to do so, and therefore, he gave himself no chance to succeed for the state.”

I’m no fan, either, but in fairness he tried the “taking the issues to the people” approach, and got blown out of the water in an election when his plans were voted down. After that, he just caved, which is unfortunate to say the least!! Hope the GOP in California can hang tough! But, I must say I fear we may have a sellout ala Snowe, Spectre & Collins!

[Oldeconomybuyer]

California cannot declare bankruptcy.

The legal definition of municipality needs tested: "Only a "municipality" may file for relief under chapter 9. 11 U.S.C. § 109(c). The term "municipality" is defined in the Bankruptcy Code as a "political subdivision or public agency or instrumentality of a State." 11 U.S.C. § 101(40). The definition is broad enough to include cities, counties, townships, school districts, and public improvement districts. It also includes revenue-producing bodies that provide services which are paid for by users rather than by general taxes, such as bridge authorities, highway authorities, and gas authorities.

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter9.html

[fifedom]

OUTSTANDING! Now we need to recall the RINO b*stard Cogdill and any other Republican who votes for the tax increase.

[fifedom]

Why should he care? The Dems and Arnold are going to get him a cushy government job in return for betraying his oath.

[calex59]

The current package containing billions in tax hikes, spending cuts and borrowing took leaders more than three months to put together as the state tries to pass a midyear budget fix and avoid fiscal calamity.

This frickin' budget fix IS a fiscal calamity. Good for the Senate republicans standing up for what is right!

[KingofZion]

yes, and the public agrees despite relentless cheerleading by MSM for tax increases.

as shown by WSJ, CA currently has the highest marginal income tax rates and sales tax rates. while property tax rate is low thanks to prop 13, the actual amount of prop tax paid is higher than most states due to high values.

for some reason the legislature doesn’t think they can make more cuts. but of course that is not true.

[JSDude1]

If Republicans stand together, an if no other source of funds become available; then democrats will be forced to “cut”. their pet projects; its a shame what reality does to liberalism!..