While CA voters say “no new taxes” Democratic majority promotes $2 Bil tax increase

As the clock continues to tick CA is about to run out of cash. The following Press Release was just received from the Howard Jarvis Taxpayers Association, HJTA. California’s legislature’s Democratic majority is pulling out all the stops on addressing the budget shortfall by fast forwarding the calendar including the “deferral of state worker salaries from June 30th to July 1 to ensure the cost takes place in a new fiscal year.”

Isn’t it comforting to learn that “Standard and Poor’s has put us on their credit watch list.”

For Immediate Release, Contact: Jennifer Kerns (916) 420-2888

Howard Jarvis Taxpayers Association

June 24, 2009


Package of bills does not address $24 billion shortfall

Sacramento, CA — Today, the Howard Jarvis Taxpayers Association (HJTA) opposed a 19- bill package brought forward by legislative Democrats that fails to take seriously the magnitude of the $24 billion budget deficit California finds itself in.

“The budget package put forth by legislative Democrats represents an incomplete solution at a time when real reform is needed. Because it failed to fully solve the problem of a $24 billion budget deficit, it failed to address our concerns that a vote for partial cuts now is a vote for higher taxes later,” said Jon Coupal, President of the Howard Jarvis Taxpayers Association. “It is time to stop playing games with California taxpayers. It is time for a budget with fewer one-time solutions, a budget reserve not built on $2 billion of proposed tax increases, and cuts that solve our cash flow situation by bringing spending in line with revenue. Anything short of that, especially with California likely to experience further declines in revenue, is completely unacceptable.”

Voters made it very clear on May 19th where they stand on budget issues: they want the Legislature to provide a complete solution with no taxes. The $2 billion in new taxes on oil, cigarettes, business, and a $15 VLF hike indicates that message has not been heard. Further, accounting gimmicks that move one month of state employees’ salaries into a new fiscal year, or that increase income tax withholding will only make the problem worse. Eight months from now, without fundamental structural budget reform, and with the federal stimulus money gone, what happens is inevitable: higher taxes for one of the highest taxed states in the country.

This budget failed to address the need for real reform. This budget failed to address the fears of our creditors that California is quickly going insolvent. And, this budget failed to address Taxpayers’ concerns that a vote for partial cuts now is a vote for higher taxes later.

About Larry Gilbert