Jun 18, 2008 4:26 pm US/Pacific
Calif. Republicans Want To Cap State Spending
SACRAMENTO (AP) ―
Republican lawmakers said Wednesday they want a spending cap and emergency reserve fund as part of a long-term solution to California's budget problems.
The proposal would allow state spending to grow only as fast as the population plus inflation.
Half of any revenue over that limit would go to a special emergency reserve fund while half would be used to pay off state debts. Money in the reserve fund could be used only when state revenue fell below the spending limit in any given year.
"The system is broke. Unless we take our steps now to adopt long-term fixes, our budget system is going to not work in the future," said Assembly Minority Leader Mike Villines, R-Clovis. "Republicans want to solve this budget crisis, not just for this year but for the years to come."
The proposal calls for temporary sales tax cuts when debts are paid off and the reserve fund is full.
Republicans touted the plan as a way to avoid boom-and-bust budget cycles, but Democrats said they oppose additional formulas that prevent lawmakers from addressing the state's budget needs.
Assembly Speaker Karen Bass, D-Los Angeles, said lawmakers instead should examine ways to raise revenue by closing tax loopholes or raising fees.
Democrats also are opposed to Republican budget proposals to roll back requirements related to environmental protection, workplace safety and the Americans with Disabilities Act. They accused Republicans of trying to hold the budget process hostage by demanding such changes.
Democrats need some Republican votes in the Assembly and Senate to reach the two-thirds majority needed to pass the budget. Republicans try to exploit that clout each year during budget talks.
"This is not going to happen on my watch," Bass said of the regulatory changes demanded by Republicans. "We are not surrendering to their demands."
Republicans described their proposals as legitimate measures to stimulate the economy.
"It is a little bit frustrating when we are trying to put forward ideas that we think are very commonsense that will help the process overall, to then be criticized and say that we are trying in some way to hold the budget hostage," said Senate Minority Leader Dave Cogdill, R-Modesto.
California faces a $15.2 billion budget deficit in the fiscal year that begins in July. Gov. Arnold Schwarzenegger has proposed closing the shortfall in part by selling bonds based on the presumed future value of the state lottery.
Democrats and Republicans in the Legislature remain philosophically divided over how to deal with the deficit. Democrats seek a balance of spending cuts and tax increases, while Republicans favor cuts.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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