Posted on 07/15/2009 9:44:34 PM PDT by Ernest_at_the_Beach
SACRAMENTO — Gov. Arnold Schwarzenegger and legislative leaders say they're nearing a deal to close the state's $26.3 billion deficit. And despite California's left-leaning electorate, the final product is almost certain to be settled on Republican terms, with deep spending cuts to most state programs and no new taxes.
After huddling in the governor's office until almost midnight Tuesday, the Big Five — Schwarzenegger and the four Democratic and Republican leaders of the Assembly and Senate — reconvened Wednesday afternoon for another lengthy negotiating session. All sides said they are within striking distance of a deal.
But emerging from the governor's office for an hourlong break Wednesday evening, the Democratic leaders hinted that they are agonizing over a final few decisions to close a deal.
(Excerpt) Read more at mercurynews.com ...
Do we believe they might be close?
Republicans hold virtual veto power over the budget in California because of a state law requiring two-thirds majorities in both houses of the Legislature to pass a budget or raise taxes.
How long before this same kind of political situation is also repeated at the national level, if it’s ever repeated at the national level?
I was very pleased to see this. Way to wield the power of the minority.
I was interested to see they are debating about whether to suspend the (voter-approved) Prop 98, which guaranteed certain education funds. Can they DO that?
Don’t know.
What’s sad is that it takes a complete meltdown for our side to be heard, for our side to get our policies implemented.
There are a lot of serious folks who believe this 2/3 majority vote requirement to raise taxes needs to be done away with. Remove it and the budgets will always have enough revenue. Go figure.
They also believe Prop 13 should be done away with....
The Legislature can suspend Prop 98 by two thirds vote.
http://www.lao.ca.gov/2009/edu/prop98_primer/prop98_primer.aspx
(last section, fourth item from the bottom)
Talks fail to break California budget impasse
**************************EXCERPT*******************************
Thu Jul 16, 2009 1:55am EDT
Jim Christie
SACRAMENTO, California (Reuters) - California Governor Arnold Schwarzenegger and lawmakers failed on Wednesday night to agree to balance the state's budget by closing a $26.3 billion deficit, but officials said talks would continue.
The budget talks, which have lasted weeks, have stalled over a part of the governor's plan to suspend a law on school funding, Karen Bass, the speaker of the state assembly, and California Senate President Darrell Steinberg told reporters.
The legislature's two top Democrats said budget talks would resume on Thursday.
Schwarzenegger, a Republican, had said earlier on Wednesday he was hopeful a deal to resolve the lengthy budget crisis was near and might be reached by the end of the day.
"There's no nastiness in the discussions, no blowups," he said at a press conference. "There's none of that, so I think we have a good shot of getting the budget done today."
The state government began its fiscal year on July 1 facing a historic budget gap and a severe cash crisis.
California, which would be the world's eighth largest economy if it were an independent nation, has issued IOUs to vendors as well as taxpayers owed refunds to save cash for servicing of state bonds and other priorities payments.
Among sticking points in negotiations are Schwarzenegger's demands for a budget deal including changes to rules he says will prevent fraud in welfare programs.
He has also proposed paring education spending by suspending a voter-approved measure that locks in funding levels for public schools. Democrats oppose both ideas and are especially concerned about education spending cuts.
This I gotta see.
I just read a Margaret Thatcher quote on another thread:
“The problem with socialism is that you eventually run out of other people’s money.”
Clearly they think there still is a lot of money to be had....from the rich....they can always sell their expensive real estate.
And higher taxes would encourage them to buy the tax free Muni Bonds.
Ironically, I always thought that Prop 13 must have a depressing effect on the real estate market in California. Why would a longtime homeowner with locked-in lower property taxes want to give it up to, say, move across town? What would happen is, both the seller buying the house across town, as well as whoever bought the seller’s property, would be subject to reassessment and MUCH higher property taxes. It makes more sense to just stay where you are (unless you are fleeing to another state, that is).
Rumors are that they will balance the budget on the backs of local government - taking the HUTA (gas taxes) used to maintain and plow county roads; taking 1A money and discontinuing Williamson Act subventions. Particularly in small counties, this means another wave of heavy layoffs - including sheriff, DA and PD offices.
I’m using that for my tag.
Try it again
Third times the charm
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.