Midnight on June 15th is the official date for a budget agreement in our state legislature. Obviously that date has now passed. As posted previously over 150 concerned citizens participated in a “Taxed to the Max” rally at the Capitol on June 11th after which we hand delivered 28,000 petitions promoting NO NEW TAXES to the appropriate legislators offices.
So what happens now you may ask?
“The real need to have a budget in place is the beginning of the new fiscal year, July 1. In fact, the last time a budget was passed by June 15 was in 1986—20 years ago.”
The following was just received from Republican Senator Tom Harman
6/18/2008
Republican Budget Reforms Will Limit Spending, Protect Taxpayers
Plan Establishes Spending Limit, New Rainy Day Fund to End Chronic Deficits
Senate and Assembly Republicans today unveiled a fiscally-responsible budget reform plan that establishes a spending limit and a rainy day fund. Republicans said these reforms are vital to getting state spending under control and preventing severe deficits from hurting Californians in the future.
“California has faced chronic budget problems for one simple reason – an out-of-control budget system that requires lawmakers to spend more than we take in each year,” said Senate Republican Leader Dave Cogdill, of Modesto. “It’s time to end the budget madness once and for all. Our spending limit will help get California back on track by prohibiting reckless overspending and creating a new rainy day fund, while protecting hard-working Californians from higher taxes.”
The budget reform proposed by Republicans establishes a spending limit that restricts how much the Legislature can increase state spending each year to the combined percentage change in the state’s population growth and inflation, which currently averages about 5 percent. It also creates a new rainy day reserve fund to be used when the state is facing a fiscal emergency or natural disaster.
Under this plan, as the economy rebounds and revenues increase, the Legislature will be forced to prioritize spending to stay within the spending limit. Any additional revenues above and beyond the spending limit will go into the rainy day fund and be used to pay off state debt. Once the reserve reaches the maximum amount or the debt is repaid, any remaining dollars will fund temporary reductions in the state sales tax.
Republicans said that California would continue to face budget uncertainty if lawmakers didn’t take action now to fix a broken system that forces the Legislature to overspend when times are lean and allows politicians to overspend instead of save when times are good. A recent poll by the nonpartisan Public Policy Institute of California showed 68 percent of Californians supported enacting a spending limit like the measure proposed by Republicans.
Republican lawmakers said that passing budget reform was essential to making progress in ending the state’s long-term budget problems once and for all. Enacting a spending limit will also allow California to pay down budgetary debt, maintain a stable level of funding for state programs, protect the budget from revenue volatility during tough economic times and save more money for times of emergency.
“All across California, families are struggling to pay increasing prices for food and record prices for fuel, while their mortgage payments go up and their home values go down,” said Assembly Republican Leader Mike Villines, of Fresno. “Republicans are ready to get the job done and solve our state’s fiscal problems not just this year, but for future years in the best interest of all Californians.”
Senate and Assembly Republicans also reaffirmed their opposition to tax increases, which they say will only hinder economic growth and cost Californians their jobs.
Today’s budget reform proposal is the latest in a series of reform proposals legislative Republicans have put forward that would reduce spending and jumpstart our economy. The reform measures would have also put more dollars in the classroom during this tough budget year and let government stretch limited budget dollars to their fullest.
Juice readers. When do you think the big 5 will agree on the new budget?
Will it contain new taxes, increased fees, Bond Measures or a combination of all three?
It will be at 12:00 Midnight on June 15th under the dome, no matter what time it is everywhere else in the world. You and I both know they suspend time up there, they unplug the “official” clock. Isn’t that responsible!
We can only hope they will actualy be responsible and do the right thing here, but don’t hold your breath.
I’m guessing mid-July, not that it really matters. The spending cap proposal is the best suggestion to come out of a legislator’s mouth all year. We should find a way to get it on the ballot as an initiative so we can bypass the politicians and instill some sanity.
“New Rainy Day Fund to End Chronic Deficits”
This is a code word for, “Over Taxation.”
1st they say, we will tax you for 100 percent of the government costs. Then we will tax you an extra 20 percent for a rainy day fund. And then they spend that 20 percent too.
Lying bastards all of them.
Larry
enjoyed your piece. Unfortunately, here is Sacramento, the proposal of which you speak is DOA-in fact DBA is a more appropriate description. Dead Before Arrival. The Reps know it and will not admit to it. We will not have a budget until September 1. It will make last years stalemate look like kids play.
The current Republican budget proposals would damage our air quality, disadvantage working people, deny the disabled their full rights and increase the jeopardy the state is facing from global warming (delay AB32 implementation) and cost tens of thousands of jobs in the state.
We need a balanced budget and a growth constraint plan would be great but most lawmakers know the Republican proposal wasn’t made in good faith but to make political points in an election year.
Schwarzeneggar Centrist Republican
I agree with you and expect a very long summer without any agreement being hammered out.
How many times can we go to the well and float more Bonds that become fixed obligations for upwards of 30 years.
Someone will hang me for this off the wall suggestion but “just for levity,” and the fact that we just got out of our car where the temp reads 100 degrees, why not impose a license fee for everyone holding a garage sale. Beyond that we can tax each and every item purchased at these neighborhood, church or individual home spring cleanings. We could rake in a bundle. Last Saturday morning even saw several vehicles from Mexico at a neighborhood garage sale including a huge truck with a load so high I wonder if he can drive under some of the overpasses on his drive south.
Ken.
All joking aside, and hammereing out a budget is a serious topic, can you justify how and why “the size of the state budget increased by 30% or $34 billion dollars over the last five years?”
Who was in control of the CA Legislature during that timeframe? Somehow I think it was the Democratic party, not Republicnas who you quickly blame for trying to restrain out of control programs and expenditures.
And while we try to balance our current budget can you justify how we could ever allow “unfunded liabilities of our two largest pension systems to hit $45 billion dollars?”
You and I may not pay for the excess but our kids and grandkids surely will.
And please, don’t throw “global warming” into the mix. And lastly. How does AB32 cost tens of thousands of jobs in CA?