Sacramento, CA — Finding a solution to California´s fiscal crisis has certainly been trying for both parties in the Legislature, and Republican Senate Leader Dave Cogdill feels there are some positives in Governor Schwarzenegger´s plan released today to close a $41.6 billion budget deficit.
The proposal includes $18 billion in spending cuts, a temporary increase in the state´s sales tax and new taxes on some services.
?While Republicans have serious concerns about raising taxes during a recession, we appreciate that the Governor´s proposal includes difficult, but necessary reductions to bring state spending closer in line with revenues,? states Cogdill. ?Republicans continue to stand ready to be a part of a responsible budget solution. The Governor´s early release of his budget underscores the magnitude of the state´s budget problems and the need for urgent action in addressing this crisis.?
Assembly Speaker Karen Bass released a statement saying, ?The Governor´s proposal released today has one positive message: he may finally be coming around and realizing he needs to approve the responsible package of budget solutions the Legislature passed December 18.?
?We´ve compromised by easing environmental restrictions for transportation projects. We´ve compromised by expanding public private partnerships. We´ve compromised by putting half a billion dollars in state employee compensation on the table,? she adds.
California governors typically release their budget proposals for the coming fiscal year in early January, but, the state´s unprecedented cash crisis and the inability of the Legislature to close the growing deficit forced Schwarzenegger to act early. State finance officials say California will run out of money sometime in February, when it will have to start issuing IOUs to employees and contractors.
Written by BJ Hansen