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Legislative Democrats Roll Out New Budget Plan

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(Sacramento, CA)
Tuesday, August 3, 2010
Democrats in the two houses had been pushing separate budget plans - but they're now behind this single proposal. It includes an income tax increase of one percent for most Californians. It also cuts the sales tax significantly. Democrats claim under that scenario most people come out ahead. They're also stepping up the rhetoric against Republicans. Here's Speaker John Perez:

"They're deliberately prolonging the process and causing real suffering to score cheap political points and it's reprehensible behavior that needs to stop immediately. 

The proposal also increases the car tax, suspends the state's school funding guarantee and sets up a new tax on oil production. It rejects Governor Schwarzenegger's call to eliminate welfare programs and child care funding.   Republicans support the Governor's plan, which also includes no new taxes. Senate GOP Leader Dennis Hollingsworth calls the Democrats' proposal"fuzzy math" - and says it's not productive:

"Unfortunately with the proposal presented today by the Democrats they are moving the two sides farther apart."

State Controller John Chiang says without a budget soon, he may have to issue I-O-U's this month. 
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