Forging ahead

"New taxes on oil production and a hike in the car tax to pay for state parks will be part of Democrats’ budget proposal, which could come up for a vote on the Assembly and Senate floor as early as next week ," Capitol Weekly reports.

"The new $1 billion in revenues was laid out by Speaker Karen Bass, D-Los Angeles, in a meeting with reporters Monday.

"Bass sketched out her vision for a state budget that closely adhered to a proposal laid out last week by Senate Leader Darrell Steinberg, D-Sacramento. Bass said the 10-member legislative conference committee would wrap up its work this week and adopt a plan that includes between $12 billion and $13 billion in budget cuts. She said the committee also would adopt Gov. Arnold Schwarzenegger’s proposals for new fees, fund shifts and accelerating the collections of withholdings on personal and corporate income taxes. Those proposals add up to about $6 billion, according to documents from the Department of Finance.

"But Schwarzenegger spokesman Aaron McLear rejected Bass's new tax proposals. "As the Governor has said, he will not support a tax increase to solve our budget, so he opposes increasing the [vehicle license fee]," McLear said. "He supports debating other non-tax increase measures to fund parks."

So as Democrats began to unite behind similar proposals, the Bee reports the partisan divide is widening.

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"The partisan schism over how to close a $24.3 billion state budget hole widened Monday, as Republican and Democratic lawmakers found almost nothing to agree on – except to reject a plan by Gov Arnold Schwarzenegger to borrow $2 billion from cash-strapped cities and counties.

"While a two-house conference committee began its final expedition through the governor's budget-balancing plan, Assembly Democrats were putting together a revenue-raising package that includes a tax on oil production, a plan to collect taxes from Internet sales and rescinding tax breaksgiven to businesses last February."

The Chron's Wyatt Buchanan reports the conference committee, meanwhile, systematically pared back the governor's proposed budget cuts Monday.

"The plan to resolve the $24.3 billion deficit would spare many programs Gov. Arnold Schwarzenegger has proposed eliminating or reducing. Among them: The state poison control center. Health services for people with HIV and AIDS. Health insurance for poor children. 219 state parks that would have been closed.

""The question before us is: How do we see California in the future?" said Sen. Denise Moreno Ducheny, D-San Diego, the vice chairwoman of the committee."

"Lawmakers also put aside one of the governor's most controversial measures, which would close 219 state parks including 50 of 59 in the Bay Area. Instead, they passed on a party-line vote, six Democrats to four Republicans, a $15 surcharge to the vehicle license fee that would provide about $300 million per year for parks.

"Taxpayers would get free vehicle admission to state parks in return for the $15, though admission would still be charged at sites such as Hearst Castle at San Simeon and the Railroad Museum in Sacramento. Lawmakers increased the vehicle license fee from 0.6 percent to 1.14 percent in February."

John Myers gets a little one-on-one time with the gov, and reports that the governor is open to changes in his plan, as long as the numbers stay the same. 

"It seems Governor Arnold Schwarzenegger’s position at this juncture of the budget deficit debate can be summed up thusly: he's resolute on the size of the needed solution, but flexible on how to get there. In every way but one, that is.

That was the thrust of the governor’s message in a 22 minute one-on-one interview this afternoon in his state Capitol conference room.

You can hear exerpts from Myers' interview with Schwarzenegger here.

So, to paraphrase De La Soul, what does it all mean? In a word: potholes. 

"California drivers will face a bumpier future filled with potholes and pavement cracks, unswept streets and perhaps even drawbridges left in the air, if Gov. Arnold Schwarzenegger's budget plan becomes law," the Chron's Michael Cabanatuan reports. 

"Schwarzenegger's proposal to close the state's $24.3 billion budget gap would divert most of the state gas tax money that goes to cities and counties to fill potholes and maintain streets.

"It would basically take away our ability to provide road services," said Daniel Woldesenbet, Alameda County's director of public works. "The road program would become nearly nonexistent."

But if you're waiting for that handout from Washington, the word from the East is: No. The Waashington post reports, "The Obama administration has turned back pleas for emergency aid from one of the biggest remaining threats to the economy -- the state of California.

"Top state officials have gone hat in hand to the administration, armed with dire warnings of a fast-approaching "fiscal meltdown" caused by a budget shortfall. Concern has grown inside the White House in recent weeks as California's fiscal condition has worsened, leading to high-level administration meetings. But federal officials are worried that a bailout of California would set off a cascade of demands from other states."

 The Chamber of Commerce is pushing back against higher taxes, saying the state's business are already taxed to the max.

"California businesses are paying  almost $10.6 billion in additional taxes this year and next because of the state’s burgeoning budget deficit," the OC Register's Jan Norman reports.

This is never a good sign for a campaign. Brian Joseph reports, "Meg Whitman’s campaign announced this morning that Orange County Rep. John Campbell has endorsed the former eBay executive for governor . Six months ago, Campbell initially endorsed Whitman’s competitor for the Republican nomination, Steve Poizner, the current insurance commissioner.

And while a budget stalemate may be ruining your summer plans, you can be thankful that you're not an elementary school student in Chino. 

"Students at Dickson Elementary in Chino and Rolling Ridge Elementary in Chino Hills were supposed to be done with school on Thursday, but a clerical error means they will have to make up 34 days or the schools will risk losing $7 million in state funds.

"Under California law, schools' occasional short days — taken to allow teachers time for preparation — must be at least 180 minutes. An internal audit in May found 34 days at the two schools that were only 170 or 175 minutes.

"That missing time could be made up in just one or two school days but a further quirk of state law says the short days don't count at all. That means every one of the 34 days must be made up to avoid the penalty in state funds.

"Hilary McLean of the state Department of Higher Education said legislators intended to make the penalties stiff to discourage districts from "shaving off minutes here and there."