Just received the following update on the state budget resolution.
“It has been announced that the Big 5 have reached a tentative agreement on the State budget. While details are still being finalized it appears as though the deal will include a combination of cuts to existing programs, new revenues to the State, and temporary borrowing. Additionally, the budget will likely rely on some funding from the Federal economic stimulus package.
It is still unclear exactly what new revenues are included in the Big 5 compromise, but early indications are that the package includes a one cent increase in the State sales tax, an increase in income taxes, and an increase in the vehicle license fee from .65% to 1.15% of a vehicles value.
Much of the language of the budget compromise has already been written, specifically the portions relating to the program cuts and short term borrowing; however, the final details of the bill are still to be drafted. Both houses of the legislature will likely meet on Friday to take up the budget compromise, at this point it is unclear if the package has the two-thirds vote needed for passage.”
Gilbert comment Let’s take a wait and see approach before celebrating this announcement.
Hmm, nice timing. I have several good friends in Texas who have been trying to convince me to move there, unsuccessfully though since I love the OC coast. But the extortionist taxes have been getting to my conscience, and now this? The day before I fly to Texas for a week to visit my friends??
I’m thinking tax-free Texas is looking better by the minute. Oh yeah, and I don’t have to beg and plead with a corrupt money grubbing sheriff there to get a CCW permit. Texas CCW is not only shall-issue but they even have an online application now!
It’s generally believed that 30% of California’s wealth has left in the past 5 years, and the lost tax revenues have created this budget crisis. This tax hike is so severe that it’s reasonable to expect an additional 30% to leave. That would be nearly 2/3 of the biggest taxpayers in California.
Oh by the way, I’m a business owner with a high income. I’ll report back next week after my visit to the free state of Texas.
My information is that the increase in motor vehicle license fees of .50earmarks .15 of the .50 increase for law enforcement. I have not heard what the definition of “law enforcement” is that will be used in this formula – for instance if it will be the same approach as with Prop. 72 monies or some other approach. Expect to see jockeying by various public agencies on this issue trying to get their piece of the .15 pie.
I am also told that this package to include an item on the June ballot that would impose a spending cap on the state budget, and if it passes then these tax increases will be in effect for 5 years, but if it fails only 2 years. To me that is giving the public a chance to vote themselves a tax cut in two years. Interesting “opportunity”.
Lastly, I was told that the package includes a 12Cent per gallon gasoline tax increase.
Of course, the details of any deal are not yet public, so this hearsay information could be off the mark, but it’s what I was told in a conference call with a Sacramento lobbyist this AM.
if this is true calif is shot . it keeps raising taxes/fees no one wants to do business here . yet we keep electing the same clowns year after year . when are we going to wake up . all we do is tax n spend and its ruled by one party . we have to have a ballance so one party dose not get away with everything THAT GOSE BOTH WAYS .
*Wow…now this is a “CA Stimulus Package” that almost anyone can get behind. Uh oh, they already did “get behind” us. Just think about all the companies that will want to rush into CA to buy Real Estate, build their glass buildings and provide thousands of new high value jobs for the waitin CA population. Gosh, where do we get these great and intelligent thinkers that believe laying off their stupid decisions on the tax payers is “fitting and proper”? We need a “Vote NO” button!
We have an incompetent state government that is killing the goose that laid the golden egg.
John Thorley- Good riddance tight-wad, and don’t forget to take your big ego with you.
the great one- Remember 1990, term limits? Those are new, unaccountable clowns that we’re electing.
The big question as we wait the outcome of the legislature action. Was this a trial balloon?
If not, will any Republican that took the “no new tax” pledge, vote for a tax increase? If so, word on the street is that “the party” will run a challenger against them in the district primaries.
No. 7 – in this environment the winner would be the candidate that lost the election. Why anyone would want to be a Legislator in the midst of this national and state (and perhaps World) financial disaster is beyond me. Know when to fold ’em.
Been there.
The same might be said about president Obama’s running for president knowing the recession would greet him a the front door. It seems that every candidate feels that he or she can do a better job than the incumbent. Their is a big difference between campaigning Vs governing in any elected position. Hello! This is not a dictatorship where you can decide public policy without support of your peers regardless of which office you hold.
Here it comes again!
Ben Dover