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GOP Votes NO on Dems State Budget Proposal
Bill Curtis By: Bill Curtis
1:55 PM Monday, August 18th, 2008
A Democrat budget proposal containing $6.8 billion in higher taxes and $2 billion in new spending failed to pass in the State Assembly Sunday. Republicans criticized the spending proposal citing the negative impact on California’s already struggling economy and the Democrats’ failure to include long term budget reform.



“Californians are paying the price because Democrats have delayed passage of a bipartisan budget for seven weeks. Essential state health care services for the elderly and less fortunate are being threatened and many state workers are receiving layoff notices or lower wages. It’s time we put partisan bickering aside and get to work on a real budget plan,” said Assembly Republican Leader Mike Villines, of Fresno.

“It’s time for Democrats to stop the games and start negotiating with Republicans on a budget compromise. Republicans are prepared to lead and we call upon Democrats to work with us to reach an agreement on real budget reform and a responsible balanced budget without tax increases,” added Villines.

MEANWHILE......“This is truly a compromise budget,” said Assembly Speaker Karen Bass (D-Los Angeles). “We are ready for budget reform right now. We are ready to go to the ballot right now. We are ready with a compassionate, balanced budget that meets the Governor’s demands and will keep our economy strong, maintain our commitment to education, and protect our state’s most vulnerable citizens.”

The proposal has five major changes from the budget that was approved by the Assembly-Senate conference committee on July 17, 2008. The changes reflect changes required by the Governor to sign a budget bill.

- Budget Reform – The package includes a new constitutional amendment for the November ballot that increases the size of the state’s “Rainy Day” Fund enacted in Prop 57/58 from five to 10 percent of General Fund revenues. It also provides more protection to the Fund by requiring any transfers from the Fund back to the General Fund to be in a stand-alone bill. It also creates a mechanism to transfer funds to the Rainy Day fund in strong revenue years. All of these provisions were recommended by the LAO.