Perata & Steinberg Call for Discussion of Tax Increases to Solve State's Budget
California Political Desk
November 06, 2008
(SACRAMENTO) – Senate President pro Tem Don Perata (D-Oakland) and Senate President pro Tem-Elect Darrell Steinberg (D-Sacramento) said that legislative leaders should begin meeting daily to hammer out an agreement on how to tackle the state´s growing budget deficit.
California´s tax revenues are now expected to be $11.2 billion lower than assumed in the 2008-09 budget, which was signed two months ago. Perata and Steinberg said the shortfall is too much to make up with cuts alone and that lawmakers should consider restoring the Vehicle License Fee and instituting an oil severance tax to bolster revenues.
The Governor has said he will call a special session Thursday on four separate issues, including economic stimulus and the deficit, but Perata and Steinberg said lawmakers should focus solely on fixing the budget.
There has been a lot of emphasis on economic stimulus," Perata said. "I think it´s important – it has its role, its place – but the fact is nothing that we do to stimulate the economy will have any immediately effect on the deficit. If we don´t take care of that deficit, then a lot of the bonds we hope to sell to stimulate California´s economy may not sell."
There really are only two issues now: cuts and taxes," Perata said.
Let´s solve the problem," Steinberg said. "The people of California spoke very loudly Tuesday. In the midst of this economic recession, in the midst of difficult budget times, they apparently have passed Prop 1A, a huge investment in public works infrastructure in high speed rail."
If Republicans are going to come into special session," Steinberg added, "and say ´Well the public is not interested in investing in jobs and investing in infrastructure,´ the people of California just said the opposite."
No one likes taxes," Steinberg said. "No one wants to raise taxes, but we have an obligation to fully fund public education and to fund infrastructure and to make progress in health care. And it´s the same old thing in this state: We get what we pay for. We must insist on a debate that at least focuses on what we want and need and how we go about paying for it in a stable and ongoing way."
Steinberg said the state also needs help from the federal government to maintain safety net programs that face increasing demand. He said he would lead a bipartisan delegation to Washington, D.C., this month to lobby Congress and the White House for assistance.
But Perata and Steinberg said there is no quick and easy solution to the state´s budget troubles.
Things are not going to get better before they get worse," Perata said. "We cannot cut our way out of it. We cut $10 billion out of the budget already this year. There may be elasticity in that budget but not that much."
It will come down to this: Do we have a political will to take seriously the condition we are in," Perata added. "We´ll know pretty early on whether this will be taken seriously by our Republican colleagues or not, and by seriously I mean are they interested in solving the problem. You cannot have a negotiation if there are certain things you are unwilling to negotiate, such as taxes."
You either talk about everything or you talk about nothing," Perata said. "So the question will come down to: Can the Governor motivate his members in the Legislature to do the kinds of things that we believe must get done."
California´s tax revenues are now expected to be $11.2 billion lower than assumed in the 2008-09 budget, which was signed two months ago. Perata and Steinberg said the shortfall is too much to make up with cuts alone and that lawmakers should consider restoring the Vehicle License Fee and instituting an oil severance tax to bolster revenues.
The Governor has said he will call a special session Thursday on four separate issues, including economic stimulus and the deficit, but Perata and Steinberg said lawmakers should focus solely on fixing the budget.
There has been a lot of emphasis on economic stimulus," Perata said. "I think it´s important – it has its role, its place – but the fact is nothing that we do to stimulate the economy will have any immediately effect on the deficit. If we don´t take care of that deficit, then a lot of the bonds we hope to sell to stimulate California´s economy may not sell."
There really are only two issues now: cuts and taxes," Perata said.
Let´s solve the problem," Steinberg said. "The people of California spoke very loudly Tuesday. In the midst of this economic recession, in the midst of difficult budget times, they apparently have passed Prop 1A, a huge investment in public works infrastructure in high speed rail."
If Republicans are going to come into special session," Steinberg added, "and say ´Well the public is not interested in investing in jobs and investing in infrastructure,´ the people of California just said the opposite."
No one likes taxes," Steinberg said. "No one wants to raise taxes, but we have an obligation to fully fund public education and to fund infrastructure and to make progress in health care. And it´s the same old thing in this state: We get what we pay for. We must insist on a debate that at least focuses on what we want and need and how we go about paying for it in a stable and ongoing way."
Steinberg said the state also needs help from the federal government to maintain safety net programs that face increasing demand. He said he would lead a bipartisan delegation to Washington, D.C., this month to lobby Congress and the White House for assistance.
But Perata and Steinberg said there is no quick and easy solution to the state´s budget troubles.
Things are not going to get better before they get worse," Perata said. "We cannot cut our way out of it. We cut $10 billion out of the budget already this year. There may be elasticity in that budget but not that much."
It will come down to this: Do we have a political will to take seriously the condition we are in," Perata added. "We´ll know pretty early on whether this will be taken seriously by our Republican colleagues or not, and by seriously I mean are they interested in solving the problem. You cannot have a negotiation if there are certain things you are unwilling to negotiate, such as taxes."
You either talk about everything or you talk about nothing," Perata said. "So the question will come down to: Can the Governor motivate his members in the Legislature to do the kinds of things that we believe must get done."
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