Sacramento, CA — California lawmakers in the Assembly followed the lead of the Senate and settled on a budget compromise at two o´clock this morning.
The $145 billion spending plan includes no new taxes and no borrowing and those were mandates from the Republicans. The plan also eliminates the $15.2 billion deficit. However there is no stipulation for budget reform.
The plan will require taxpayers to pay 60 percent of their state taxes in the first half of 2009 rather than the current 50 percent. Senate Republican Leader Dave Cogdill stated that nobody, the Republicans or the Democrats, came out a winner.
25th District Assemblyman Tom Berryhill stated that although he liked many parts of the compromise he voted against it.
The remaining question; will Governor Schwarzenegger sign the proposed budget? Schwarzenegger has stated all along that he will not sign a budget that does not contain long term reform. The legislature could override a Schwarzenegger veto with a two-thirds vote.
According to the San Francisco Chronicle, Democratic State Treasurer Bill Lockyer was quoted as saying, “It´s banana republic financing relying on phony money and phony estimates. The legislators haven´t done their job. They haven´t done it for several years. We need radical reform of the state Constitution. I hope this tragedy will provide that.”
Written by Bill Johnson