Posted on 06/28/2002 11:02:03 PM PDT by Ernest_at_the_Beach
SACRAMENTO – Faced with a monumental budget deficit, state lawmakers appear poised to raid a $3.7 billion account used by cities and counties to pay for public safety, health programs and parks.
Top Democrat budget writers have delivered an ultimatum to Republicans: either support tax hikes and a plan to borrow from schools or the state will be forced to take money from local governments. Republicans branded the threat "extortion."
Cities and counties have become increasingly suspicious of lawmakers as the the state budget gap widens, reaching an unprecedented $23.6 billion. In the desperate search for revenue, $3.7 billion is a tempting target, local officials fear.
"We're the passengers in two cars playing chicken and we're the ones who are going to get killed," said Pat Leary, a fiscal analyst for a coalition of counties.
The $3.7 billion represents money cities and counties receive from the state to replace revenues lost when lawmakers reduced vehicle license fees. San Diego County receives about $185 million; the city of San Diego about $46 million.
"It could certainly have grave consequences for San Diego," said Councilman Jim Madaffer. "The first things to go are library hours and park and recreation programs."
Gov. Gray Davis could be tested severely if lawmakers pursue the local funds. In December, when the state budget deficit was not nearly so daunting, he promised to protect those revenues.
"The governor made a commitment to local government that he intends to keep," said Davis spokeswoman Hilary McLean.
A Democrat-dominated budget committee has proposed $4.8 billion in tax increases, combined with substantial cuts and borrowing, to close the state's budget gap.
Republicans, however, steadfastly oppose Democratic plans to increase the income tax on the wealthy or to raise vehicle license fees. GOP lawmakers have repeatedly rebuffed Democratic efforts to borrow $1.7 billion left in an education account this fiscal year to help pay the school bill in 2002-03.
As a result, the $3.7 billion that could be diverted from cities and counties looms large.
"It's the only place left to go," said Sen. Steve Peace, D-El Cajon, chairman of the budget panel.
Assemblywoman Jenny Oropeza, D-Carson, said the budget cuts have been so deep that there are few alternatives to plucking money from cities and counties.
"Everywhere else has been slashed to the bone," said Oropeza, another budget negotiator.
Republicans dismiss threats of more cuts as scare tactics. "We're about to close down the Washington Monument any minute," said Assemblyman Tim Leslie, R-Tahoe City, facetiously.
Sen. Bill Morrow, R-Oceanside, accused Democrats of telling Republicans, "If you don't burn down your barn, we'll burn down your house. Either way, it's extortion."
Although Democrats control both houses, they need Republican support to reach the two-thirds majority required to pass a spending package.
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LOL! Oh yeah, the coffee money has been cut by 10%.
A Democrat-dominated budget committee has proposed $4.8 billion in tax increases,
And the deficit is 23.6? Let's see, what happened to the other $18.8 Billion? Hidden taxes? That's a lot of hidden taxes. The economic reality is that government is too large and must shrink. Imagine less government. Imagine a park or library run by the private sector. Imagine WOW! as in the things that might be available vs. what we currently 'enjoy' .
Governments do a few things well. The rest, they screw up on a large scale. It's called job security. The question for taxpayers is: "Do you wish to continue to support ineffeciency on a large scale?" If so, keep voting democratic.
Sadly, the majority of voters depend upon government to provide some form of support for their liveliehoods and cares not a whit to change this relationship. Given this, deficits will loom large into the future. Too bad. The private sector could provide so much more in so many ways than governments can, yet the average voter is too dumb to realize this and will continue to saddle themselves with (public) debt.
If I were told I was spending 23.4 billion more than I made, I'd consider myself a candidate for bankruptcy. To the average democrat, deep sand would do the job. A good place to put your head, I suppose.
I grew up in California although I left six years ago (exactly today in fact). I remember in high school paying the state a few hundred dollars a year for the "privlege" of living/working there. This was while I was in high school- you know when I was making minimum wage for 16 hours a week nine months out of the year. I couldn't have topped but a couple a thousand a year!! They seemed to take almost as much as the Feds.
I remember the year they couldn't cover all the checks they had written out for tax returns . If I remember right there were some banks taht wouldn't even take the checks cause they didn't trust the state to pay up. Funny- they had the money when it was origianny confiscated out of our checks but when ti was time to pay it back it wasn't there.
My mother lives in one hellhole of a neighborhood. A house down the street just sold for half a million!! You couldn't pay me to live in that nieghborhood again- but somebody else just dropped a pretty good chunk of change.
Now imagine the property taxes on a half a million dollar house. And then when you realize that that is in a sh.tty nieghborhhod- my goodness it just blows my mind!! Don't forget the state income taxes on the guy who can afford that half a million dollar house.
And the da*n Dems need MORE money????????
I wish California weather was anywhere else- its the only thing I miss!!
The massive one in Westwood has more books than most libraries, organized in a more intuitive way, and everything's bang up to date instead of 30 years behind the times.
And the hours? Don't even talk to me about the hours, there's absolutely no comparison. 11-11 or even midnight instead of 9-4:30 or 6.
I think you can even "borrow" books as long as you return them within 15 days in pristine condition :-).
D
As it is, we pay around 9% on the last dollar earned, plus some of the highest sales taxes in the nation. This state is gouging the hell out of people, yet they keep voting for Democrats. I'll never understand the mindseet behind that.
It's lose-lose for the Dems; either way they can be slaughtered with attack ads later....IF the Republicowards had the guts to do so.
--Boris
Of course, the media will never report this.
Sales Tax!!! I forgot all about sales tax- though we pay at least 8% here and I know when I got here (Wa. state) I was paying about the same sales tax in both places.
Tax wise my favorite place to live was Alaska- there was a 2% sales tax in Anchorage but nowhere else- no income taxes and every year each citizen actually GOT money from the state from the oil revenues. I guess some people have smart governments.
I can't fathom the need for more money with the way they already RAPE the people there. I am certainly glad the owner isn't paying the 10-15K but still at 5K a pop for houses in less desirable areas. The state must be making a killing in property taxes alone. Just a few hundred thousand on my mothers street alone. I find it so hard to believe they don't have enough money.
Here when they want to raise taxes they tell us they will have to cut essential services if it doesn't pass- fire and police always get threatened- I am sure it is the smae everywhere. If they would quit spending so much on entitlements and enviromental BS then they wouldn't kep falling short. Course our fellow constituents just voted twice to send more money to the wastelands more commonly known as public schools. We are headed the way of California - I guess it in inevitable since so many of us are transplanted from there. Hopefully my husband and I will pick the best (most profitable) time to sell and get the hell out of here.
One of the other saving graces of Proposition 13 was that it dictated that your property taxes can't be increased more than 2% a year as long as you own the place. Only when it's sold will it be reassessed and the 1% tax imposed on the new higher value value. So people (like me) who've occupied their homes for a long time have some relief. My property taxes would be 3 times what they are now if that provision wasn't in effect.
Here when they want to raise taxes they tell us they will have to cut essential services if it doesn't pass- fire and police always get threatened- I am sure it is the smae everywhere.
That's the source of the "closing the Washington Monument" remark in the article: every time the U.S. Park Service has its budget threatened, they say they'll have to close the Washington Monument, one of the most popular tourist destinations in D.C. It's become both a joke and a symbol of how bureaucracies defend themselves against budget cuts. They pick the most visible and popular programs and say they'll have to be shut down. Nobody would care if they said they were going to have to cut staff in the Weights and Measures department.
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