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Groups Join Forces For Calif. Political Reform

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Groups Join Forces For Calif. Political Reform

SACRAMENTO (CBS 5 / AP) ― Responding to voter anger about the state's political gridlock, Democrats in the California Legislature and an independent group proposed major reforms Thursday to the way state government operates.

But Assembly Republican Leader Martin Garrick quickly made it clear that his caucus doesn't support the proposal, saying any attempt to roll back taxpayer protections is "dead on arrival."

"While there are parts of this proposal that might take legislative reforms a small step forward, as a whole it would send California taxpayers three steps back," Garrick said.

The most significant reforms would change the requirement to pass a state budget from a two-thirds Legislative majority to a simple majority, but would retain the two-thirds majority needed to raise revenues through taxes or fees.

Lawmakers also would forfeit legislative pay if a budget was not passed on time, and would be required to identify funding sources for bills that cost the state at least $25 million per year.

"We all know that the California system of state and local government finance is broken," Senate Pro Tem Darrell Steinberg, D-Sacramento, said at a news conference. "We know that the two-thirds rule, both at the local level and for passage of the state budget, inhibits a timely and effective resolution of our budgets every year."

Legislative leaders created the proposal with California Forward, a bipartisan group that has been pushing for structural changes.

Because the reform proposal would change the state constitution, it would have to be approved by a two-thirds vote of the Legislature before heading to a ballot to be approved by voters.

The budget change proposal was crafted with input from Republicans in the business community, but no Republican lawmakers lent their support to the announcement at the press conference. The lack of bipartisan support could make it difficult, if not impossible, for the reforms to succeed.

"The action today by the Democrats is disappointing, and it's a thinly veiled attempt to be able to increase taxes, increase spending even further, and circumvent the people's protection of Prop. 13," said Senate Republican Leader Dennis Hollingsworth.

Proposition 13, a constitutional amendment passed by voters in 1978, slashed property taxes across the state.

Republicans were skeptical that the changes would not result in tax increases. If the Legislature could approve budget spending and companion "trailer bills" on a majority vote, rather than a two-thirds vote, then there could be a way around the stricter threshold to pass a tax increase, they said.

Democrats insisted that was not the case.

"We would not allow for any revenues that currently require two-thirds to be passed without two-thirds," said Assembly Speaker John Perez, adding that the same would be true for any fee that replaces a tax.

Hollingsworth said there are parts of the proposal that Republicans would support, such as performance-based budgeting. Republicans also agree with requiring longer-term budget forecasts.

"No one would tell you more than us that this place needs reform," Hollingsworth said.

Democrats also compromised their interests in building the proposal, said Bob Hertzberg, co-chair of California Forward. He said liberals were pushing for a simple majority vote to raise revenues, rather than the two-thirds vote the proposal requires.

The package also would prohibit the state from borrowing or reallocating local property taxes. But a group that has been collecting signatures for a November ballot initiative aiming to stop the state from raiding local government and transportation funds was not satisfied.

"For too long, Sacramento elected officials have borrowed or redirected these funds, putting a significant strain on city and county budgets," said Kathy Fairbanks, representing Californians to Protect Local Taxpayers and Vital Services.

The reforms also would give authority to the governor to reduce spending if the Legislature does not pass a measure to address a fiscal emergency. One-time revenues could only be used for one-time purposes.

California Forward will remain involved as the reform package moves through both houses of the Legislature, Hertzberg said.

"If what the legislature comes up with is good, we'll support it and put it on the ballot," Hertzberg said. "If not, we're still going to continue to raise money, and we'll just work to put it on the next ballot. We're not going to stop."

(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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