"Gov. Arnold Schwarzenegger on Thursday said progress was being made in negotiations to close
California's $42 billion budget gap and that he was hoping for a legislative vote this
week," writes the AP's Judy Lin.
"'We're not there yet. But let me tell you, we have a good
chance this week to get a budget and to really move
the state forward,' Schwarzenegger said in comments following a museum
event honoring Abraham Lincoln's 200th birthday."
Worth noting that the new budget eliminates Lincoln's Birthday as a holiday...
"The governor and legislative leaders are scheduled
to meet Thursday to work out details of a proposal
to address the state's budget deficit through June 2010. Assembly Speaker Karen Bass scheduled a floor vote for Saturday morning.
"'What I do think it represents is a true compromise,' Bass said. 'I say it's a package that has something for everybody to hate.'"
That was certainly true among some Senate Republicans
yesterday.
Capitol Weekly reports, "Republicans are winning major concessions from majority
Democrats in the proposed state budget as negotiations
intensified dramatically Thursday in the Capitol. The
concessions include eased workplace rules and exemptions
from California's environmental laws for transportation projects.
But the concessions were still not enough to secure
votes among the Senate Repbulican Caucus as the Democrat-controlled
Legislature sought to close a $42 billion shortage over 18 months.
"Clearly, there are some victories in there," said Sen. Tony
Strickland, R-Thousand Oaks. "But if you raise taxes $14.8 billion,
you’re going to hurt education, health care, and you’re not going to
get the revenue they think you’re going to get."
"California state budget officials hope to use as much as $10 billion from the looming federal stimulus package
to avoid borrowing money to offset the state's gaping $42 billion deficit," write Matthew Yi and Wyatt Buchanan in the Chron.
"A budget deal being finalized Thursday between Gov.
Arnold Schwarzenegger and legislative leaders still
would include deep spending cuts and temporary tax
increases, officials said.
"Assembly Speaker Karen Bass, D-Baldwin Vista (Los Angeles County), said she believes a budget agreement through June
2010 is about "99 percent" complete after more than three months of negotiations.
"The Assembly is scheduled to vote on the plan Saturday,
and Schwarzenegger was also upbeat about the prospects
of closing the months-long budget impasse."
"The proposal includes raising the sales tax by 1 cent on the dollar, raising the gasoline tax by 12 cents per gallon and raising personal income tax.
The plan also would raise the vehicle license fee (VLF) from 0.65 percent of a vehicle's value to 1.15 percent. This would, for example, raise the fee from $260 to $460 on a $40,000 vehicle," report Elysse James and Serena Maria Daniels in the
Register.
"Cities currently get some revenue from the license
fee, but under the new plan, 1 percent would go to the state general fund, and the
0.15 percent would go to local law enforcement, so cities
would be losing that revenue.
"'The details of the VLF increase haven't been scrubbed yet, but my understanding is none of
that will flow to the cities so there's no benefit there,' said Tustin Mayor Doug Davert.
"'There's no benefit to the tax and it's a deterrent for people who might otherwise buy a
car. It's going to hurt,' Davert said.
"Steve Finnegan, a government affairs manager with the Automobile
Club of Southern California, said that the probable
increase in the VLF – which all auto owners must pay annually – puts it in line with other big-ticket property taxes.
"'One percent seems to be the average for most things
– homes, a boat, anything big. So, while the increase
is a little higher, it seems to be a reasonable rate,' Finnegan said."
"Union negotiators and the Schwarzenegger administration
worked furiously Thursday to close contract talks before lawmakers vote on a state budget package that
calls for $1.4 billion in savings from state employees' pay and benefits," Jon Ortiz reports in the Bee.
"The outcome of the talks could determine how many days
workers will be furloughed during the state's budget crisis and the extent to which layoffs will
help meet the savings goals.
"Jim Zamora, spokesman for Service Employees International Union
Local 1000, said the union had been in "high-level discussions" with the governor's staff about a new contract.
"'We're fairly close to a contract,' Zamora said in a noon telephone interview. 'The things that we're still looking at aren't radically different than what's in the proposed budget.'
"The negotiations, however, are unlikely to undo the
loss of Lincoln's Birthday and Columbus Day as paid holidays, although
the two-day-a-month furloughs ordered by Gov. Arnold Schwarzenegger
are on the table, according to a source familiar with
the labor talks."
"Interest groups at both ends of the political spectrum
reacted with anger Thursday to the emerging plan to
close the state's massive budget deficit, and doubts began to mount about whether it had enough
support in the Legislature to survive a planned vote
this weekend," reports Mike Zapler in the Merc News.
"The $41 billion plan disclosed Wednesday includes a series
of steep tax increases and spending cuts that neither
party relishes, but which Gov. Arnold Schwarzenegger
and legislative leaders say are the only way to avert
a fiscal disaster. At least three Republicans in each
house of the Legislature would have to vote for the
plan to clear the required two-thirds majorities it needs to pass — but so far no rank-and-file Republicans has endorsed it.
"In addition, at least one conservative Democrat, Sen.
Lou Correa of Santa Anta, had yet to commit his vote.
"'I think it's very premature to say this is a done deal,' said Sen. Tony Strickland, R-Thousand Oaks, who opposes the package. 'As it stands today, I don't think the votes are there.'
"'I'll believe it when I see it,' said Jon Coupal, president of the Howard Jarvis Taxpayers Association,
an anti-tax group. 'I would be stunned to see Republican votes sufficient
to pass this thing.'"
While the Bee's Jim Sanders also writes that the spending plan is being denounced by interest groups on both sides, the Bee's Hudson Sangree reports that Saturday's expected budget vote could be nearly impossible to
get to, without getting run over by Lance Armstrong.
"At worst, it could become a logjam for the hundreds
of lawmakers, staff members, lobbyists and members
of the public who show up to participate in the budget
proceedings.
"'It's going to be extremely busy, to say the least,' said Tony Beard Jr., the state Senate's sergeant-at-arms. 'People are calling and saying, 'Do you know there's a bike race Saturday?' '
"Driving and parking downtown – and even crossing N and L streets with cyclists whizzing
down the avenues – promise to be nerve-racking, or even impossible.
"'These guys could be going 35 mph,' fast enough to do serious damage to anyone in their
way, Beard said.
"Both the Senate and the Assembly plan to be in session
starting at 9 a.m. Saturday.
"Ronald Pane, the Assembly's sergeant-at-arms, said the goal is to get everyone into the Capitol
well before the race starts at 1 p.m. and to keep them there until after it finishes
at 4 p.m."
We're sure your Valentine won't mind...
"Gay-rights and labor leaders Thursday called on former President Clinton to cancel his speech
Sunday at a San Diego hotel developed by a major supporter
of Proposition 8, the measure to ban gay marriage endorsed by voters
in November," writes Tony Perry in the Times.
"Clinton is set to speak to the annual convention of
the International Franchise Assn. at the Manchester
Grand Hyatt. Douglas Manchester contributed $125,000 to Proposition 8 forces.
"During the campaign, Clinton opposed the measure and
recorded a telephone message calling it unfair and
wrong.
"Opponents of the measure have led a boycott of Manchester's hotel, which has been the site of numerous political
events in the past. The San Diego Business Journal
estimated that the boycott has cost the hotel more
than $2 million."
"California's historic leadership in higher education is in decline, with the state failing to provide a new generation
of low-income, heavily Latino and immigrant students with
the college prospects their parents and grandparents
enjoyed, according to a study released Thursday," reports Gale Holland in the Times.
"The state ranks near the top nationally for residents
over age 65 who have at least an associate of arts degree, but
places only 29th in the nation for those between 25 and 34 who have the same level of education, the study said.
Unless the pattern of shrinking opportunities is reversed,
the state risks a serious shortage of educated workers
to compete in a global economy, the study warned.
"'We're facing some really serious challenges and it has
to do with not getting our younger generation educated
at the same rate as other generations,' said Nancy Shulock, coauthor of the report and executive director of
the Institute for Higher Education Leadership & Policy at Cal State Sacramento. She spoke during a
conference call Thursday about the report. 'We don't think the budget crisis can be an excuse not to act.'"
And from our Them's The Breaks files, "A Utah woman listed in the Guinness Book of World Records
for her long fingernails has lost them in a car crash. Lee Redmond of Salt Lake City sustained serious but non-life-threatening injuries in the accident Tuesday.
Redmond's
nails, which hadn't been cut since 1979, were broken in the crash.
"According to the Guinness Web site, her nails measured
a total of more
than 28 feet long in 2008, with the longest nail on her right thumb at
2 feet, 11 inches."
