California budget talks hit an impasse over three-month tax extension

Los Angeles Times ^ | June 8, 2011 | Anthony York and Shane Goldmacher

[BAW]

Republican lawmakers are prepared to let voters decide whether to close California's stubborn budget deficit with higher taxes in exchange for major changes in state spending, public pensions and regulatory policies.

But a week before the legal deadline for a spending plan, and with lawmakers' pay hanging in the balance, a final budget accord between Gov. Jerry Brown and Republicans remains elusive amid disagreement over which should come first — tax hikes or an election.

He (Brown) and Republicans have largely settled, however, on a core package of policy overhauls to be enacted if a tax deal can be forged soon. Those include a new restraint on state spending to force California to use any future windfalls to pay down tens of billions of dollars in debt incurred by past budgets.

In addition, public employees would have the option of a retirement package that would include a 401(k), according to legislative staffers who spoke on condition of anonymity because budget negotiations are still in progress.

Also under discussion is a plan to require that the state produce a report on the economic impact of any new regulations before they can be etched into the state's books. Business groups and Republicans have long sought such a requirement to ward off regulations they say would hamper job growth.

[BAW]

Time is getting short, and the legislature is in full panic mode. But, looks like the Repubs may bring the tax increase extensions to a vote if other concessions are agreed. We shall see in the next couple of weeks. We shall see.

[cherry]

aren’t pubs greatly in the minority in Cali?....the rats run the state and have for so many years, yet its always those rascally republicans who seem to catcht the blame....

[businessprofessor]

I am underwhelmed with the Republican deal especially on pensions. Now is the time to demand real reform especially given that Andrew Cuomo has made strong statements about pensions in New York. The idea that public employees will have the option of a defined benefit or defined contribution pension is lame. Now is the last time for meaningful conservative input. The California rats will redistrict conservatives out of any input on state government. No deal is preferred to a rotten deal. Conservatives have nothing to lose. They will be booted out regardless of any deal made.

[pogo101]

Not sure that I’d support putting the tax extensions on the ballot EVEN for these reforms. Some reasons:

1. We simply don’t need tax extensions. CUT SPENDING MORE.

2. Remember that the taxes to be extended, already ONLY are at their current, higher levels because of a deal that was “sold” (corruptly in any case) as “Just ONE LAST TIME to really, REALLY fix the budget for GOOD.” Extending these rates puts the lie to that deal. No dice.

3. How can we be assured that the things we’d get in exchange for the ballot measure approval, won’t get hijacked by the left? For example, I love IN THEORY the idea of requiring a “Cost Benefit Analysis” for new laws and regulations, but how can we have any assurance that the bureaucrats who create such analyses, and judge them, will not be overwhelmingly leftist? Think of the folks who routinely underestimate the costs of Medicare, of high-speed rail and other boondoggles.

4. How can we be so cocky that the voters of this Barbara Boxer state will vote down the proposed multi-year FURTHER extension? Sure, the polls suggest that NOW, but just wait until the voters are pelted with another $10M campaign of leftward ads paid for by union goons. It’s happened before.