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Budget Deal Reached - Are Votes There for Passage?
As reported in the press, a Budget deal between the four legislative leaders and the Governor, appears to have been reached. The Assembly will be meeting to vote at 9 am Saturday, and the Senate has just announced that they will convene at 9 am Saturday as well. As reported by the media, the package includes a temporary 1% increase in the sales tax, increasing the Vehicle License Fee (VLF) to 1.15% of market value, a one-time 5% income tax surcharge, and a 12-cent gas tax increase. The Budget will also ask voters to approve a plan to borrow against future State Lottery revenues, as well as asking voters to redirect $608 million in so-called "First 5 Funds," for early child development. As a way of discouraging attempts by various organizations to defeat the spending cap provision, that will likely be placed on a May or June ballot, the sales, and VLF tax provisions would stay in effect for 5 years, if the initiative passes, or for only two years, if it fails.
In a unique twist, legislative staff has drafted several different versions of "trailer bills," depending on which approach is ultimately agreed to. We have talked to a few key sources who do not feel that library programs are in danger of being cut when the details of the Budget plan emerges late tonight.
In the meantime, both Democrats and Republicans are being targeted by their constituencies, to oppose the Budget agreement. Making matters more difficult, is the demand by Republicans, that every Democrat in the Assembly and Senate vote for the bill, before they put up their three votes in each house to meet the necessary 2/3 vote requirement for passage. Four Democratic Assemblymembers, who won Republican seats in the last election, as well as one Democratic Senator, who pledged not to raise taxes during a close election in November, find themselves in a difficult situation. Nonetheless, both Assembly Speaker Karen Bass, and Senate President Pro tem Darrell Steinberg, are optimistic they will have all of the necessary Democratic votes. Whether there will be the three necessary Republican votes, in each house, is still uncertain. Yesterday, one Republican lawmaker, who is opposed to any tax increases, informed us that he told his wife, "I may not see you for a few days."
Submitted by Mike Dillon and Christina DiCaro, CLA Lobbyists
Posted on February 17, 2009 9:57 AM | Permalink