Piggybacking on Brian’s item about the Speaker acknowledging that cuts will be part of an overall budget compromise, apparently the first concrete proposal has cleared the Senate Budget Committee, and this isn’t meeting halfway, it’s actually mostly cuts.
The Senate Budget Committee, meeting late Wednesday, approved a $1 billion package of emergency cuts to education and other services aimed at preventing the state from running out of cash.
Republicans, saying they had inadequate time for review, did not vote on the package, which cleared the committee with nine Democratic votes. The full Senate is expected to consider the actions Friday.
This is the first in what is expected to be a number of measures on the budget. This one, closing the $800 million dollar gap in the current fiscal year, had to be executed before the Feb. 23 deadline for the fiscal emergency that the Governor called at the beginning of the year.
The numbers are bleak. $500 million is coming out of education. Medi-Cal payments to providers will be reduced by 10%, which will directly impact patients with longer wait times in emergency rooms and diminished access. And a good deal of other social spending programs will see their budgets frozen.
There weren’t ALL cuts, though. Dick Ackerman’s precious yacht tax is scheduled for the chopping block.
Democrats also voted to abolish the so-called “yacht tax,” a loophole that allows purchasers of boats, motor homes and airplanes to take possession outside the state’s boundaries and avoid California sales taxes if they leave it out of state for a specified period.
The committee’s Democratic chairwoman, Sen. Denise Ducheny, said that for all the cuts under consideration, “wealthy people who can buy yachts should pay the proper sales tax.”
But that’s the only silver lining, it appears.
The decline of California as a national leader is greased by unfortunate measures like this, which are not the result of bold leadership but foolish priorities and an obsession with antitax rhetoric that leaves the state in a perpetual fiscal hole. New leadership might alter this a little bit, but really this is about the Democratic caucus rejecting Republican spin and recognizing the structural needs to move the state into the 21st century and ditch its 19th-century budget constraints.