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SCCA Magazine |
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Legislative Committee Report, May 2010 |
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The state budget dance begins
The first steps of the 2010-11 budget
dance have officially begun. So far it’s
gone like this: Governor Schwarzenegger
wants to cut, Democratic Legislature wants
to tax. In between is the dancing. For those
who are interested in the official record,
the State Constitution requires the budget
to be passed by June 15, but nobody in
Sacramento believes that will happen with
the state facing a $17 billion deficit.
Friday, May 14, Schwarzenegger released
the May Revision of his 2010-11
budget. The purpose of the revision is to
adjust the budget to reflect the unanticipated
changes since he sent his January
budget to the legislature. The revision proposes
massive cuts to core social service
programs.
The main victims are:
• Eliminate need-based child care ($4.3
billion)
• Reduce state employee pay and pensions
($2.1 billion)
• Eliminate cash grants and welfare to
work services ($1.2 billion)
• Reduce various public health insurance
programs ($900 million)
• Reduce inmate medical costs ($800 million)
• Reduce in-home support services ($800
million)
• Cut county mental health funds ($600
million)
• Other program changes ($1.6 billion).
In total the governor proposes $12.2 billion
in reductions, $3.4 billion in federal
funding, $2.6 billion in loans and $900 million
in other revenue solutions for a grand
total of $19.1 billion in budget solutions.
The legislature has countered the governor’s
revision. The Democrats want to:
• Raise the car tax from 1.15 percent to 1.5
percent ($1.2 billion);
• Extend the 0.25 percent income tax surcharge
scheduled to end on December 31
($1 billion)
• Extend the $217 per-dependent reduction
in the dependent income tax credit
($430 million)
• Increase state alcohol tax ($210 million)
• Suspend the net operating loss and
eliminate the ability to carry back losses
for two years ($2.05 billion).
Clearly a great divide exists between
the governor and legislature, which is why
this could be a very long summer in Sacramento.
We’ll keep you apprised.
For more information, contact Paul VonBerg,
Chairman of the Legislative Committee or
call Todd Bloomstine at (916) 444-9453. | |
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