More on California Budget Deal
February 12, 2009
From the Sacramento Bee:
Multiple legislative sources said Tuesday that it would raise revenues temporarily by these means:
• Increasing the state’s sales tax by 1 cent on the dollar.
• Increasing gasoline taxes by 12 cents per gallon.
• Raising the state’s vehicle license fee from the current 0.65 percent of a vehicle’s value to 1.15 percent, with 1 percent going to the general fund and local law enforcement getting 0.15 percent.
• Increasing the personal income tax across the board, either by assessing a surcharge on tax liability or increasing the tax rate.
The sales tax, personal income tax and vehicle license fee components would be in effect for either two years or five years, depending upon the fate of a ballot measure to restrict spending.
If voters approve the spending limit, the three revenue-raising components would be in effect for five years. If they reject the measure, the revenue would die after two years.
It was not clear Tuesday whether the proposed gasoline tax increase also would be tied to the ballot measure or how long it would remain in effect.
The spending restrictions would require the state to place money into a rainy-day fund after reaching a limit determined by state revenues over a 10-year period.
Gov. Arnold Schwarzenegger and legislative Republicans want business-friendly changes that make it easier for private contractors to bid on certain public projects, provide more leniency in how employers offer meal breaks and reduce overtime pay requirements.
More on California here.
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