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What they’re saying about Jerry Brown’s tax plan

Gov. Jerry Brown today issued an open letter to Californians announcing, as expected, that he’s filing a proposed ballot measure to hike income taxes on those making more than $500,000 a year and temporarily boost the state sales tax by half a cent to prevent devastating budget cuts in education and public safety.

From state Senate President Pro Tem Darrell Steinberg, D-Sacramento:

“Californians realize that four years of draconian cuts have swung the pendulum too far. We’ve done enough damage, and enough is enough. It’s time to stop the bleeding and begin reinvesting in public education and local public safety. The Governor’s plan dedicates new revenue where it’s most needed – guaranteed to go directly into our public school and community college classrooms. At the same time, it protects ongoing funding for local public safety programs. The temporary taxes also create a more equitable system, with everyone paying a little more in sales tax while the wealthiest among us pay their fair share at a time when they enjoy record income growth. Bringing more balance to the support of essential services will begin to restore the greatness of our state.”

From state Senate Republican Leader Bob Dutton, R-Rancho Cucamonga:

“Clearly the governor has put tax hikes ahead of job creation. Californians have consistently voted down tax-only proposals. Senate Republicans continue a call to action on reforms first. Only with reforms can we put Californians back to work and restore the people’s confidence in state government.”

From Assembly Speaker John Perez, D-Los Angeles:

“The Governor’s revenue plan is fair, focused and forward-thinking. The plan asks the wealthiest among us to pay their fair share and takes us another major step forward on getting control of our long-term finances. More importantly, this plan helps minimize the need for cuts to higher education and other critical services and ensures that California is making the kinds of investments in education and public safety that will keep our communities safe and help our economic prosperity in the long term. I believe this is a plan that every Californian can and will support, and I look forward to working with the Governor and my colleagues in the Legislature to win approval from the voters.”

From Assembly Republican Leader Connie Conway, R-Tulare:

“Governor Brown is once again relying on his failed budget playbook in proposing a massive $35 billion tax increase on hard-working Californians and job creators. Voters rejected similar tax increases in the past and have shown a strong reluctance in polls to accepting higher taxes to bailout Sacramento. Ironically, Sacramento Democrats are again proposing higher taxes at a time when Washington Democrats are suggesting a tax increase on families could plunge the country back into recession.

“Despite their rhetoric, it is clear that our state’s projected $13 billion budget shortfall is not the result of a lack of revenue, but rather that Democrats want to grow government spending by $10 billion next year. The majority party’s budget priorities are clear – sock working families with a painful tax increase to pay for more health and welfare spending and unsustainable public employee pensions, while education continues to take a massive hit. Assembly Republicans will again stand united as the last line of defense for taxpayers and will fight these reckless taxes every step of the way.”

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Posted on Monday, December 5th, 2011
Under: Assembly, ballot measures, Bob Dutton, California State Senate, Connie Conway, Darrell Steinberg, Jerry Brown, John Perez, Nancy Skinner, state budget, taxes | 8 Comments »

What they’re saying about the budget forecast

The Legislative Analyst’s Office today issued a fiscal forecast showing California’s state budget deficit for the fiscal year starting next July 1 will be almost $13 billion.

If the state Finance Department concurs next month, this could mean $2 billion in mid-year “trigger cuts” this year, mostly in the K-12 and higher education budgets.

From Gil Duran, spokesman for Gov. Jerry Brown:

“California’s budget gap is the result of a decade of poor fiscal choices and a global recession. This year, we cut the problem in half. Next year, we’ll continue to make the tough choices necessary until the problem is solved.”

From Assembly Speaker John Perez, D-Los Angeles:

“Today’s announcement by the LAO is indicative, but not determinative of the final decision on whether the budget triggers will be pulled next month and we must wait until the Department of Finance December forecast, which will have up to date information and certainly may alter the trigger calculation to lessen the level of trigger cuts.

“Given the uncertainty in the global economy, we included these triggers as a mechanism to ensure California’s fiscal solvency through this budget year. We approved budget solutions that eliminated seventy five percent of the ongoing structural deficit over time, and we have more work to do to accelerate the elimination of the remainder of that deficit.

“Ultimately, we all know that the best long-term solutions to our budget challenges are rebuilding our economy and putting Californians back to work, and we will continue working to build on the progress we’ve made with respect to job creation in the coming year.”

From state Senate Majority Leader Ellen Corbett, D-San Leandro:

“I am deeply troubled by this forecast and the prospect of making another round of deep cuts to public schools and higher education. The Legislature and governor should explore all of our available options, and do everything we can, to prevent mid-year cuts.

“The bottom line is our public schools and institutions of higher education are woefully underfunded, and we must find a way to reverse this trend of cutting their support if we are serious about providing Californians and their children with a bright future.”

From Assembly Budget Committee Vice Chairman Jim Nielsen, R-Gerber:

“The Legislative Analyst’s Office report indicates, as predicted, that the budget passed by Democrats with only a majority vote was overly optimistic and based on shaky assumptions. In this budget, state spending is predicted to increase by 12 percent by 2012-2013. It is clear that state spending has not been brought under control, and that’s not even factoring in the enormous cost of the federal healthcare mandates.

“It indicates that a lot more needs to be done to get California’s budget under control, and that does not happen through tax increases. Government has changed very little in how it conducts its business in the last three years.”

From state Controller John Chiang:

“Today’s news is no surprise. Our economy’s sluggish growth means a tax windfall is unlikely, and not a penny of the estimated $4 billion has been collected to date. The Governor and lawmakers were smart to backstop their hopeful budget projections with mid-year cuts, but they may not have gone far enough. Today’s report tracks with the troublesome pattern we have seen in the State’s receipts and spending, which could mean a cash-flow problem in California’s near future.”

From state Senate President Pro Tem Darrell Steinberg, D-Sacramento:

“Today’s numbers make it clear that the state’s first priority must be to get to the ballot in November and raise needed revenues to avoid any more damage to Californians. The notion of cutting deeper into education, public safety and services for those in need is unthinkable. I imagine an overwhelming majority of Californians agree.

“We’ve cut to the point that the results are being felt like never before. The cupboard of easy solutions is bare. Just ask the students in our higher education systems; the more than one million elderly, blind, or disabled living in poverty; the families who see their kids go to school where the classrooms are more crowded and the resources are dwindling. We’ve hit a crossroads where the time has come to turn things around.

“Democrats have tackled more than half of the reoccurring deficit problem we’ve been plagued with ever since Governor Schwarzenegger cut the Vehicle Licensing Fee. As the LAO points out, last year’s budget actions have put our ongoing deficits at the lowest we’ve seen since the recession began. By building on that foundation, new revenue will finally allow the state to recover and reinvest.”

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Posted on Wednesday, November 16th, 2011
Under: Assembly, Bob Dutton, California State Senate, Darrell Steinberg, Ellen Corbett, Jerry Brown, John Chiang, John Perez, Mark Leno, state budget | 2 Comments »

Rhetoric-rich reactions to new state budget deal

Gov. Jerry Brown and Democratic legislative leaders announced a budget deal this afternoon that can be passed on simple majority, no-Republicans vote – practically a done deal with Thursday being the last day of the fiscal year. Both sides insist the state deserved far better, so let’s all assume that’s true and it’s time for Californians to assume the position.

My colleage Steve Harmon will file has filed a story on the nuts and bolts, but meanwhile, talking points are being unsheathed left and right — so, let the rhetoric fly!

From state Senate President Pro Tem Darrell Steinberg, D-Sacramento:

“This is a balanced budget that protects, to the greatest extent possible, California’s public education system, jobs, the economy, and our way of life. While this budget implements more than $14.6 billion in harsh and very real cuts, it also puts us on a pathway over the next 18 months to eliminate a structural deficit that’s plagued California for a decade.

“This budget is the most austere fiscal blueprint California has seen in more than a generation. Spending levels are at an historic low, and every sector of society will feel the difficult choices we’ve made to bring this budget into balance.

“Earlier this year, the Governor asked both Democrats and Republicans to get out of their comfort zones and do what was best for California. For Democrats, that meant agreeing to billions of dollars in cuts to programs that are vital to children, the elderly, the sick and the poor. We delivered in March and we’re delivering again in June – with billions more in cuts, particularly if revenues fall short of projections.”

“Unfortunately, Democrats were forced to deliver alone. We used all the tools available to us under the Constitution to do just that – deliver.

“The imperative for revenue is as great as before because there is still a structural deficit looming. We will move forward through the initiative process to put the question before the voters in November of 2012.”

From state Senate Republican Leader Bob Dutton, R-Rancho Cucamonga:

“Californians deserve better than the ‘Hope without Change’ budget the Democrats announced today. This latest budget is based on the hope that $4 billion in new revenues will miraculously materialize, but does absolutely nothing to change government as usual.

“The Democrats have said no to all of the Republican reforms that Californians are demanding, including pension reform, a spending cap and job creation. Californians have the right to a real bi-partisan budget solution that provides for a vibrant economy and job opportunities.”

From Assembly Speaker John Perez, D-Los Angeles:

“We began this process with a commitment to make 2011 the year we stopped reacting to the Great Recession and started the difficult work of building our way out of it. The budget agreement we have reached moves us much closer to that objective. We will pass a comprehensive, on-time budget that closes the remainder of the deficit for this year, and eliminates more than 75 percent of the structural deficit going forward.”

“One of the most important aspects of this budget agreement is that it will not cause massive job losses that threaten our economic recovery. We have cast some very difficult votes, but we need to get control of our finances if we are going to be able to make the kind of long-term investments that are necessary to rebuild our shattered economy and prepare the workforce for the kinds of 21st century economy industries, like green manufacturing and biotechnology.”

From Assembly Republican Leader Connie Conway, R-Tulare:

“Republicans listened to the voters and stayed true to the only special interest we represent – California’s taxpayers. Despite every effort by Gov. Brown, legislative Democrats, public employee unions and other Sacramento special interests to pressure us to raise taxes by $58 billion, we honored the commitment we made to the people of California to stay out of their wallets. While Democrats may still use legally questionable maneuvers to raise taxes, the simple truth is because of Republicans’ resolve, temporary tax increases will expire this Friday and the average California family will save nearly $1,000 per year.

“Californians deserve a government that understands that money belongs to the people, not the government. While we still haven’t seen the details of the Democrats’ budget plan, our steadfast opposition to higher taxes has helped remind Sacramento tax-and-spend liberals of the need to live within our means.

“In the remaining months of the legislative year, Republicans look forward to passing badly-needed measures like pension reform to fix future state budgets. We will also continue to push our pro-jobs agenda to help the nearly 2 million unemployed Californians get back to work.”

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Posted on Monday, June 27th, 2011
Under: Bob Dutton, California State Senate, Connie Conway, Darrell Steinberg, John Perez, state budget | 5 Comments »

The buzz on Jerry Brown’s May budget revision

From state Senate Republican Leader Bob Dutton, R-Rancho Cucamonga, and state Senate Budget Vice Chair Bob Huff, R-Diamond Bar:

Bob Dutton“Senate Republicans believe Governor Brown is moving in the right direction by making education and law enforcement funding a top priority. We also applaud the governor for embracing Republican proposals of paying down state debt and providing some job-creation incentives.

“But the May Revise goes too far on taxes and not far enough on reforms.

“Rather than curbing government spending, the governor’s revised budget still sets the state on a course of excessive spending growth in the future – spending that relies on tax increases.

“With $6.6 billion in new revenues, Republicans are right – we don’t need, and it’s ridiculous to ask voters for, five years of new taxes.

“Clearly the California economy is trying to recover, which makes it critical that the state budget include reforms that Senate Republicans have been seeking from day one – a hard spending cap, pension reform and business-regulation relief.

“The Senate Republicans’ long-terms solutions provide the stability small businesses need to grow and create jobs.”

From State Senate Budget Committee Chairman Senator Mark Leno, D-San Francisco:

Mark Leno“The revised budget proposal Governor Brown released today makes use of the state’s unexpected improved revenues in a fiscally responsible way and addresses California’s structural deficit so that we do not dig the hole any deeper. While our cash forecasts are encouraging, we are far from resolving the long-term deficit problem, and must not fall into the trap of utilizing one-time solutions, borrowing and deferments that would only aggravate the problem. This revised budget is an honest and balanced spending plan that extends current revenues to stimulate the economy, secure jobs and protect public investments in K-12 education, universities, public safety and social programs. I am committed to working with Governor Brown, my colleagues in the Legislature and the people of California to help our state recover and flourish once again.”

From Assembly Republican Leader Connie Conway, R-Tulare:

Connie Conway“In our ‘Roadmap to a No Tax Increase Budget,’ Assembly Republicans showed that we can protect funding for the classroom and law enforcement without raising taxes. We call upon the Governor to stop trying to raise people’s taxes and start working across party lines on a no-tax increase budget compromise. Protecting our core priorities, reforming state government and bringing back private sector jobs – without raising taxes — must continue to be our focus as we work to get California back on track.”

From state Treasurer Bill Lockyer:

“The Governor deserves credit for not succumbing to expediency and remaining focused on California’s longer-term fiscal future. The plan reflects an understanding that, despite welcome revenue increases, the State still faces significant budget shortfalls not just in the next fiscal year, but in subsequent years. It closes those ongoing deficits with a balanced approach that solidifies California’s fiscal foundation without short-circuiting the state’s economic recovery.

“The plan’s effect on our ability to borrow $10 billion to meet the State’s cash-flow needs remains unclear. If full implementation of the Governor’s FY 2011/12 plan remains contingent on voter approval of taxes, my office will not be able to complete a cash-flow borrowing transaction unless the final adopted budget includes real, inescapable, quickly-implemented spending cuts that would be triggered if voters reject the taxes.”

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Posted on Monday, May 16th, 2011
Under: Bill Lockyer, Bob Dutton, California State Senate, Darrell Steinberg, Jerry Brown, John Chiang, Mark Leno, state budget, Tom Harman, Tom Torlakson | 11 Comments »