Claremont Insider: State Dems Release Budget Plan

Friday, June 19, 2009

State Dems Release Budget Plan

Democratic state legislators unveiled their counter-proposal to Governor Schwarzenegger's budget plan, which relies entirely on spending cuts and raiding local government funds to balance the projected $24.3 billion state budget deficit for 2009-10.

According to an article the Daily Bulletin, the Democratic plan would still cut $11 billion in services, but would also raise taxes and fees to the tune of $2.1 billion. Among these increase would be a $15 hike in the vehicle license fee, a 4.8% charge on property insurance premiums to pay for state-funded firefighting efforts, a 9.9% oil extraction tax, and a $1.50 a pack tax on cigarettes.

Among the cuts are $4.5 billion from K-12 education, $2 billion from state colleges and universities, and $490 million from community colleges. Health care, public safety, and human services will also take hits, though not as much as under the Governor's plan.

The plan also includes some gimmicky proposals, such as deferring state employee paychecks by one day, from June 30, 2010, to July 1, in order to push about $1.2 billion in spending into the next fiscal year.