I read Bloomberg News so you don't have to. If you live in California, this article might be interesting.
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California Budget May Not Have Votes, Senator Says
Feb. 13 (Bloomberg) -- California Governor Arnold Schwarzenegger may not have enough votes to push through a plan designed to fix the $42 billion budget deficit that’s left the state unable to pay its bills, a senator said.
The proposal, worked out between Schwarzenegger and legislative leaders behind closed doors, isn’t supported by enough Republicans to reach a two-thirds supermajority needed to approve taxes increases and budgets, said Senator George Runner, a Los Angeles-area Republican. At least one Democrat also may not vote for the package, which would raise taxes, cut spending and borrow to fill the gap.
“I don’t see that the votes are available to get this out of the Senate,” Runner said in an interview yesterday. “The support isn’t there right now.”
The budget proposal would raise the state’s sales tax rate to 8.25 percent from 7.25 percent; boost vehicle license fees to 1.15 percent from 0.65 percent of the value of an automobile; add 12 cents of taxes to each gallon of gasoline; reduce the dependent-care tax credit to $100 from $300; and impose a surcharge on income taxes of between 2.5 percent and 5 percent, depending upon how much California gets in federal stimulus money.
Combined, the measures would raise taxes and fees by $14 billion. Schwarzenegger is also proposing $16 billion in spending cuts and $11 billion in new state debt. All the tax increases would be temporary, lasting from two to five years.
Ready to Fire
Schwarzenegger is prepared to tell 20,000 state employees later today that they may be terminated to conserve cash if he and lawmakers can’t reach a consensus on a budget plan that can garner enough votes, said his Press Secretary Aaron McLear.
“In the absence of an agreement the governor must do everything that he can to conserve cash,” McLear said.
The Assembly and the Senate have scheduled floor sessions to vote on the package for tomorrow starting at 9 am local time. Schwarzenegger has been calling individual lawmakers to press his case, McLear said.
An agreement would bring an end to a four-month stalemate over how to cover the record deficit that has drained California of cash, left it with the lowest credit rating among U.S. states, forced officials to delay paying $3.7 billion of bills and halted $3.8 billion of bond-financed construction on schools, roads and other public works
Republicans have blocked previous tax-increase proposals advanced by Schwarzenegger and the Democrats who hold a majority in both chambers of the Legislature. Democrats don’t have enough seats to raise taxes or pass a budget without Republican support.
Termination Notices
Schwarzenegger’s administration said Feb. 10 that it would begin sending out termination notices today to about 8 percent of the state’s employees, laying the groundwork for the governor’s goal of temporarily cutting as many as 10,000 jobs.
He ordered more than 200,000 state workers to begin taking two unpaid days off, beginning this month.
Tomorrow’s vote will come just at an estimated 80,000 people will descend upon downtown Sacramento for the start of Tour of California bicycle race, where seven-time Tour de France winner Lance Armstrong and former Tour de France champion Floyd Landis will compete. Much of the area around the state capitol building will be blocked off from vehicle traffic during the day, making it difficult for the public to access the building for the vote.
To contact the reporters on this story: Michael B. Marois in Sacramento, California, at mmarois@bloomberg.net
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California Budget May Not Have Votes, Senator Says
Feb. 13 (Bloomberg) -- California Governor Arnold Schwarzenegger may not have enough votes to push through a plan designed to fix the $42 billion budget deficit that’s left the state unable to pay its bills, a senator said.
The proposal, worked out between Schwarzenegger and legislative leaders behind closed doors, isn’t supported by enough Republicans to reach a two-thirds supermajority needed to approve taxes increases and budgets, said Senator George Runner, a Los Angeles-area Republican. At least one Democrat also may not vote for the package, which would raise taxes, cut spending and borrow to fill the gap.
“I don’t see that the votes are available to get this out of the Senate,” Runner said in an interview yesterday. “The support isn’t there right now.”
The budget proposal would raise the state’s sales tax rate to 8.25 percent from 7.25 percent; boost vehicle license fees to 1.15 percent from 0.65 percent of the value of an automobile; add 12 cents of taxes to each gallon of gasoline; reduce the dependent-care tax credit to $100 from $300; and impose a surcharge on income taxes of between 2.5 percent and 5 percent, depending upon how much California gets in federal stimulus money.
Combined, the measures would raise taxes and fees by $14 billion. Schwarzenegger is also proposing $16 billion in spending cuts and $11 billion in new state debt. All the tax increases would be temporary, lasting from two to five years.
Ready to Fire
Schwarzenegger is prepared to tell 20,000 state employees later today that they may be terminated to conserve cash if he and lawmakers can’t reach a consensus on a budget plan that can garner enough votes, said his Press Secretary Aaron McLear.
“In the absence of an agreement the governor must do everything that he can to conserve cash,” McLear said.
The Assembly and the Senate have scheduled floor sessions to vote on the package for tomorrow starting at 9 am local time. Schwarzenegger has been calling individual lawmakers to press his case, McLear said.
An agreement would bring an end to a four-month stalemate over how to cover the record deficit that has drained California of cash, left it with the lowest credit rating among U.S. states, forced officials to delay paying $3.7 billion of bills and halted $3.8 billion of bond-financed construction on schools, roads and other public works
Republicans have blocked previous tax-increase proposals advanced by Schwarzenegger and the Democrats who hold a majority in both chambers of the Legislature. Democrats don’t have enough seats to raise taxes or pass a budget without Republican support.
Termination Notices
Schwarzenegger’s administration said Feb. 10 that it would begin sending out termination notices today to about 8 percent of the state’s employees, laying the groundwork for the governor’s goal of temporarily cutting as many as 10,000 jobs.
He ordered more than 200,000 state workers to begin taking two unpaid days off, beginning this month.
Tomorrow’s vote will come just at an estimated 80,000 people will descend upon downtown Sacramento for the start of Tour of California bicycle race, where seven-time Tour de France winner Lance Armstrong and former Tour de France champion Floyd Landis will compete. Much of the area around the state capitol building will be blocked off from vehicle traffic during the day, making it difficult for the public to access the building for the vote.
To contact the reporters on this story: Michael B. Marois in Sacramento, California, at mmarois@bloomberg.net
Find out more about Bloomberg for iPhone: http://bbiphone.bloomberg.com/iphone
Sent from my iPhone
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