Maldonado is a traitorous swine.
Bloomberg News, sent from my iPhone.
California Senate Approves Budget Fix, Ending Impasse
Feb. 19 (Bloomberg) -- The California Senate passed tax increases and spending cuts needed to close a record budget deficit, ending a political deadlock in the Legislature that gripped the Capitol for more almost six days.
The measures moves to the Assembly, where if it is approved would be sent to Governor Arnold Schwarzenegger for his signature.
A $13 billion tax increase passed 27-12 after Republican Senator Abel Maldonado of Santa Maria broke ranks with his party to cast the deciding vote in exchange for support for unrelated changes to election law. His support allowed the budget package to attain the two-thirds majority needed for approval.
“This could be a career-ender for me,” he told reporters in the Senate chamber in Sacramento before the vote. “In difficult times, you need to step up to the plate.”
The Senate action came amid nearly round-the-clock talks. More than a year of economic recession has hammered California’s tax collections, creating a gap in the budget that forced the state to shut down thousands of construction projects, delay payments of income tax refunds and left it with the lowest credit rating of any U.S. state.
While Democrats control both chambers of the Legislature, taxes and budgets must be approved by a two-thirds supermajority equal to 27 of 40 seats in the Senate and 54 of 80 in the Assembly.
Tax-Increase Provisions
The tax increases, totaling as much as $13 billion through June 2010, are part of a budget package backed by Schwarzenegger, a Republican, and Democrats. The Senate also passed proposed cuts to the budget.
The vote broke a deadlock that threatened to drain the state of cash and unnerved investors.
Standard & Poor’s on Feb. 2 cut the rating on $46 billion of California’s bonds to A from A+, giving it the lowest credit grade of any U.S. state. A California bond due in 2036 that pays 4.5 percent interest last traded at 82.8 cents on the dollar to yield 5.75 percent. On Feb. 13, that bond traded for an average 86 cents to yield 5.48 percent, according to Municipal Securities Rulemaking Board data. The higher yield indicates investors believe risk has increased.
Maldonado’s decision to break ranks followed a tumultuous day of lobbying, as Schwarzenegger and Democrats sought to salvage the budget after Senate Republicans ousted their leader for endorsing the tax increase.
Government Overhaul
To secure Maldonado’s support, Democratic leaders decided to take up government overhaul measures he sought, including a plan to create open primaries where Republicans and Democrats are free to select in whichever party’s election they want to participate. The proposal would require voter approval.
The negotiations, conducted behind closed doors in late- night sessions with no public input, drew criticism from some who voted for Maldonado’s changes to break the impasse.
“This is a disgusting process,” said Senator Gloria Romero, a Democrat from East Los Angeles. “This is not good government. This is not political reform. This is old fashioned special interests.”
The revenue proposal would raise the state sales-tax rate to 8.25 percent from 7.25 percent and boost vehicle license fees to 1.15 percent from 0.65 percent of the value of an automobile.
The package doesn’t include a gasoline tax increase, and it would cut a surcharge levied on paid income taxes, depending on how much California receives under the economic stimulus measure signed by President Barack Obama, according to an analysis distributed by Senate Democrats.
Scaling Back Operations
California’s government had slowly began to shut down as politicians debated for four months on how to cut spending or raise revenue to replace lost tax collections.
This week, as no agreement was forthcoming, the state told some 20,000 workers that they may lose their jobs.
The tax increases drew fire from most Republicans, who said they would hurt residents who are already reeling from the worst recession since the 1930s.
“We need to stop treating the taxpayers of California as our personal ATM,” said Senator Tony Strickland, a Los Angeles- area Republican.
To contact the reporter on this story: William Selway in San Francisco at wselway@bloomberg.net
Find out more about Bloomberg for iPhone: http://bbiphone.bloomberg.com/iphone
California Senate Approves Budget Fix, Ending Impasse
Feb. 19 (Bloomberg) -- The California Senate passed tax increases and spending cuts needed to close a record budget deficit, ending a political deadlock in the Legislature that gripped the Capitol for more almost six days.
The measures moves to the Assembly, where if it is approved would be sent to Governor Arnold Schwarzenegger for his signature.
A $13 billion tax increase passed 27-12 after Republican Senator Abel Maldonado of Santa Maria broke ranks with his party to cast the deciding vote in exchange for support for unrelated changes to election law. His support allowed the budget package to attain the two-thirds majority needed for approval.
“This could be a career-ender for me,” he told reporters in the Senate chamber in Sacramento before the vote. “In difficult times, you need to step up to the plate.”
The Senate action came amid nearly round-the-clock talks. More than a year of economic recession has hammered California’s tax collections, creating a gap in the budget that forced the state to shut down thousands of construction projects, delay payments of income tax refunds and left it with the lowest credit rating of any U.S. state.
While Democrats control both chambers of the Legislature, taxes and budgets must be approved by a two-thirds supermajority equal to 27 of 40 seats in the Senate and 54 of 80 in the Assembly.
Tax-Increase Provisions
The tax increases, totaling as much as $13 billion through June 2010, are part of a budget package backed by Schwarzenegger, a Republican, and Democrats. The Senate also passed proposed cuts to the budget.
The vote broke a deadlock that threatened to drain the state of cash and unnerved investors.
Standard & Poor’s on Feb. 2 cut the rating on $46 billion of California’s bonds to A from A+, giving it the lowest credit grade of any U.S. state. A California bond due in 2036 that pays 4.5 percent interest last traded at 82.8 cents on the dollar to yield 5.75 percent. On Feb. 13, that bond traded for an average 86 cents to yield 5.48 percent, according to Municipal Securities Rulemaking Board data. The higher yield indicates investors believe risk has increased.
Maldonado’s decision to break ranks followed a tumultuous day of lobbying, as Schwarzenegger and Democrats sought to salvage the budget after Senate Republicans ousted their leader for endorsing the tax increase.
Government Overhaul
To secure Maldonado’s support, Democratic leaders decided to take up government overhaul measures he sought, including a plan to create open primaries where Republicans and Democrats are free to select in whichever party’s election they want to participate. The proposal would require voter approval.
The negotiations, conducted behind closed doors in late- night sessions with no public input, drew criticism from some who voted for Maldonado’s changes to break the impasse.
“This is a disgusting process,” said Senator Gloria Romero, a Democrat from East Los Angeles. “This is not good government. This is not political reform. This is old fashioned special interests.”
The revenue proposal would raise the state sales-tax rate to 8.25 percent from 7.25 percent and boost vehicle license fees to 1.15 percent from 0.65 percent of the value of an automobile.
The package doesn’t include a gasoline tax increase, and it would cut a surcharge levied on paid income taxes, depending on how much California receives under the economic stimulus measure signed by President Barack Obama, according to an analysis distributed by Senate Democrats.
Scaling Back Operations
California’s government had slowly began to shut down as politicians debated for four months on how to cut spending or raise revenue to replace lost tax collections.
This week, as no agreement was forthcoming, the state told some 20,000 workers that they may lose their jobs.
The tax increases drew fire from most Republicans, who said they would hurt residents who are already reeling from the worst recession since the 1930s.
“We need to stop treating the taxpayers of California as our personal ATM,” said Senator Tony Strickland, a Los Angeles- area Republican.
To contact the reporter on this story: William Selway in San Francisco at wselway@bloomberg.net
Find out more about Bloomberg for iPhone: http://bbiphone.bloomberg.com/iphone
Sent from my iPhone
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