The Sacramento Bee came out today saying the Governor and Legislative leaders had reached a tentative budget deal. Like everybody else with their hand out waiting on Porkulus, a lot in California is riding on the gravy to flow from DC.
The plan includes $15.8 billion in spending cuts, $14.3 billion in taxes and $10.9 billion in borrowing, according to a budget outline obtained by The Bee.
Leaders are counting on federal stimulus money as the package approaches closure in Washington. If California receives at least $10 billion, more than half of that money — $5.5 billion — would eliminate the need for a short-term loan, while $1.8 billion would eliminate taxes and $1.2 billion would eliminate spending cuts.
This is all depending on how much California is able to get their hands on in terms of federal dollars. But it gets even more complicated, as usual;
The plan Democratic leaders laid out in confidential meetings with rank-and-file lawmakers would temporarily increase sales taxes by one cent, bringing the overall sales tax rate in Los Angeles County to 9.75%, according to legislators who were present. Motorists would pay 12 cents a gallon more for gasoline.
Vehicle license fees would nearly double, jumping from the current rate of 0.65% to 1.15% of the value of a car or truck. Such a hike would represent a major turnabout for Schwarzenegger: He rode a tide of anger against steep vehicle license fees to the governor’s office in 2003, and his first official act in Sacramento was to slash those fees.
The plan also includes a temporary personal income tax surcharge. The surcharge would be a quarter-percent of taxes owed.
All of the taxes would be in place for at least two years. They would remain in effect for five years if lawmakers agreed to put tough new spending restraints, demanded by Republicans, on the ballot and if voters approved them. The spending cap, limiting how much state government could grow, would appear on the ballot this year along with other budget-related measures.
As above (emphasis mine), the scam is this; legislators will put on the ballot for voter consideration a proposal. Don’t constrain state Democrats with spending restraints and you only get tax-whacked for two years. Do as those evil Republicans want and put fiscal restraints on legislature, and we’ll stick you with the taxes for five years. You capiche?
Looks like mob rules?
Of course this, like Porkulus, requires a conspiracy of turncoat Republicans. Standby.
When I last wondered where our money was going, I didn’t realize it was to Octomom.