The California legislature finally approved a state budget today after months of deadlock. Over the past few weeks, California was facing financial disaster as it had no approved budget, threatening thousands of jobs and potentially sending California into bankruptcy. Today, three Republicans voted “Yes” on the state budget, allowing it to pass.
California Budget Crisis
The California budget plan finally came together after President Pro Tem Darrell Steinberg locked down the State Legislature on Tuesday, barring senators from leaving. The plan will now go before Governor Arnold Schwarzenegger, who must sign the budget into law before it goes into effect.
Here’s what the budget compromise will mean to average Californians:
- Sales taxes raised by one percentage point
- Additional 5% surcharge on state income taxes.
- Increase in the vehicle-license fee from 0.65% to 1.15%.
- $15 billion reduction in government spending, including $8.6 billion from education.
- Elimination of two state holidays
- Furlough of most state workers for one day a month. Governor Arnold Schwarzenegger previously had ordered state workers to be furloughed at least two days a month until the budget passed, which we reported here.
OUCH! All of this will hurt a state that is also experiencing one of the highest unemployment rates in the country. However, without a budget, the state was facing a potential catastrophe. As we reported here, California was not paying out tax refunds because it did not have an approved budget. Governor Schwarzenegger also threatened to lay off 20,000 state workers unless a budget compromise could be reached.
As bad as the tax raises are, they could have been worse. Republican State Senator Abel Maldonaldo refused to vote for the plan until a 12-cent gas tax was eliminated.
California will also receive billions from the federal stimulus package, helping the state to make up some of its budget shortfall.
Here is Abel Maldonado talking about raising taxes yesterday. He was one of the three Republican senators who voted for the plan today:
Abel Maldonado
February 19th, 2009 at 2:17 pm
Well. There you have it. That will fix that.
February 19th, 2009 at 2:48 pm
They are trying to get all the taxpayers and property owners out to make more room for illegals.
Who needs a job when you can live wherever. Arnold should go back to making movies. He sucks as a Governor.
February 19th, 2009 at 5:44 pm
LOL . . . CA is a basketcase . . . more taxes even though CA has one of the highest tax burden among the states . . . even better raise taxes during a recession . . . a concept even Obama knows is detrimental to the weak economy (thus he is not going to recind Bush’s tax cuts to the “rich” anytime soon) . . . LOL . . . go CA you folks are doing a great job . . . let’s not remember Michigan, which has the worst economic story of any state, which occurred after they raised taxes in their state also . . .
and what do CA get for their higher taxes . . . brownouts every summer . . . budget crisis every year . . . health care and education for illegals . . . locking military recruiters off university campuses . . . water shortages because of protecting microscopic fish . . . home projects in San Francisco to protect mice . . . windpower in the desert . . . a road from NV to CA . . . raging fires every year because of lack of clearing of woodlands . . . hollywood elites who fly private jets and limousine and lecture others for driving minivans . . . LOL . . . and liberals want every other state to follow this madness?
long live CA . . . a true progressive state . . . no wonder they will probably lose a house seat for the first time in the next census (if the WH doesn’t interfere too much) . . ..
February 19th, 2009 at 7:42 pm
Well I endorse Meg Whitman for governor of california simple because it would be good for California. She is a real conservative not a celebrity who although a republican is still patly liberal, but I feel bad for Arnold his state is full of lazy sacks of crap who just want there welfare checks. I mean his state really has problems that are beyond the governor. His biggest mistake was the movie Jingle all the Way or Batman and Robin.
February 20th, 2009 at 9:14 am
Centrist Democrat Lou Correa, broke his word and voted for tax hikes. I hate to see him sacrifice what could be a long career in government because his colleagues won’t make the tough spending cuts the state so desperately needs. (Hugh Hewitt) (I say) You are willing to sacrifice your future for special interests,. I guess you know – that this will be your last term in CA. With new Property taxes going up in CA _ Thanks to you! – many more will be leaving the state of CA along with me. WHY don’t you take a decrease in your salary, instead of Freezing your pay. WHAT A JOKE! You guys are all alike, What does it take for you to see our country is on it’s way down??? – You might be smart (if that’s possible) to watch GLEN BECK – You just might get a clue, of what is happening!
March 10th, 2009 at 9:33 am
Tax Revolt 2009! Total Recall 2009!
http://paleoconservatist.blogspot.com/2009/03/total-recall-2009.html
Join the effort today!
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April 24th, 2009 at 10:07 pm
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June 30th, 2009 at 2:34 am
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