This story was reported for San Diego News Network on December 24, 2009.
This Christmas Eve in California, Gov. Arnold Schwarzenegger is attempting to figure out how to solve the state’s expected shortfall next fiscal year while one assemblymember is asking his colleagues to quit the “gimmicks.” Here’s a holiday gift from your SDNN politics editor this season: a summary of what’s happening at the Capitol.
Schwarzenegger’s plan: State employees will see furlough days until at least June 2010.
According to The Sacramento Bee, Schwarzenegger is prepping for the estimated $20.7 billion general fund deficit next fiscal year. His plan includes more than more furloughs though.
“Gov. Arnold Schwarzenegger plans to save $1.6 billion in state employee costs by extending monthly furloughs past June, laying off staff or shifting general fund workers into state jobs financed by other revenues, according to sources familiar with the governor’s forthcoming budget proposal.
Schwarzenegger and lawmakers must eliminate an estimated $20.7 billion general fund budget deficit over the next 18 months. The governor already has dismissed higher taxes as an option after temporarily raising them in February. Instead, he hopes to rely on spending cuts, a massive infusion of federal aid and creative ways of reassigning revenues to cover the gap.”
Schwarzenegger, who is expected to go in depth with his budget proposal in January, may also change some state taxes.
“Schwarzenegger will propose a tax swap that would eliminate state funding for public transit agencies, sources said. Drivers currently pay state sales taxes on gasoline, in addition to an excise tax of 18 cents per gallon. Some of those sales tax revenues are dedicated for transit agencies – more than $1 billion annually in recent years.
Schwarzenegger’s latest idea would eliminate the sales tax on gasoline – cutting out transit funding – and replace it with a new per-gallon gas tax that could help free up state budget dollars. The change could shave off pennies per gallon for drivers, depending on the price of fuel.”
Have ideas for the governor on how to fix the budget? E-mail it to him and let us know.
Hey, Mr. President: Schwarzenegger is planning to give President Barack Obama a ring to ask for a helping hand.
Schwarzenegger’s budget proposal expected to be unveiled in January includes $8 billion from the federal government.
According to Bloomberg, the Golden State exec may ask for “one-time stimulus money or a bailout,” from a federal government who has become known for its generous heart and open wallet.
“Schwarzenegger, a Republican, plans to ask for relief totaling as much as $8 billion, according to a California official who asked not to be identified because details haven’t been resolved. Instead of seeking one-time stimulus money or a bailout, the state wants the U.S. to reduce mandates and waive rules stipulating minimum expenditures on programs such as indigent health care, the official said.”
Could it happen? In the past, Obama has said “no.” But Sacramento lawmakers have said they’ll continue to pressure the federal government to offer assistance to a state with the eighth largest economy.
Budget gimmicks: A Republican assemblymember is calling out his colleagues for their usage of “budget gimmicks.”
Assemblymember Brian Nestande (R-Palm Desert) told his local newspaper, The Desert Sun, what the main issues facing California are, and how budget problems have been solved in the past with “gimmicks and facades.”
Nestande, who serves on the California Assembly Budget Committee, told the Sun how the budget should be solved and what needs to be addressed.
“The Palm Desert Republican, a member of the Assembly budget committee, outlined the main issues in a meeting with The Desert Sun’s editorial board last week:
Requiring the governor to list the state’s financial liabilities with the budget proposal.
California’s liabilities, including unfunded pensions for state workers and bond debt, could top $200 billion, according to a legislative summary.
Prohibit lawmakers from using what Nestande called budgetary “illusions,” including touting projected one-time revenue sources that aren’t secured yet.
Requiring the state treasurer to certify the budget is balanced before the Legislature can adjourn.”
According to the Sun, Nestande is working on a proposed bill, titled the Budget Accountability Act 2010, which would force lawmakers to reach a balanced budget without the “gimmicks.”
Hoa Quach is the political editor for the San Diego News Network.