Mercury News--Questions Answered about California Budget

Blog editor note: I have added commentary in blue to the article below.

Questions, answers about California's budget
By Edwin Garcia
Mercury News Sacramento Bureau
Posted: 02/19/2009 09:20:30 PM PST

SACRAMENTO — After all the theatrics at the state Capitol over California's new budget plan, you're probably wondering what the upshot is. Here are some answers:

Q When will the "temporary" sales tax increase take effect, and when will it end? (REGRESSIVE the very most REGRESSIVE tax possible--completely unfair to the poor and middle class. Increases in sales tax do not affect the lifestyles of the wealthy in the least. The incomes of the poor are already completely spent on living expenses.There is no extra cushion of money. The wealthy will be totally unaffected. Notice the "" quotation marks around temporary. Those were added by an ANTI at the Mercury News.)
A The 1-cent-on-the-dollar increase begins April 1, but when it ends depends on the outcome of a ballot measure calling for a cap on state spending. If the spending cap fails, the tax hike ends June 30, 2011. If the cap passes, the tax ends June 30, 2012.

Q What's a spending cap?
A It's a way to force state government to limit how much money the state can spend. In this case, by using a formula that links spending to inflation and population growth, the increase in annual expenditures would be capped at about 5 percent each year. (Sounds good in principle but the goal here is to make sure that all future lack of State service burdens fall on the poor and middle class)

Q What are all these ballot measures related to the budget, and when are the elections?
A There are six measures that require voter approval at a special election May 19. They seek to: implement the spending cap (HURTS the poor, not the wealthy); require the state to increase annual education funding by $9.3 billion in future years (unlikely to pass in this economy); shift Proposition 63 mental health services money; redirect how Proposition 10 cigarette tax money is allocated; clarify education appropriations from the state lottery; and deny pay increases to lawmakers during budget deficits. A seventh measure, on the June 2010 ballot, would do away with partisan primaries, which would allow candidates for statewide and congressional seats to run for office without listing their party affiliation. (This will make it likely that the only two candidates left standing after our primaries will be very very wealthy ANTIs who do not care about the poor.)

Q How much more will it cost to register my vehicle? (REGRESSIVE and UNFAIR TAX for the poor and middle class)
A Beginning May 19, the vehicle license fee rises from the current level of 0.65 percent of the value of the car to 1.15 percent of the value. The tax increase goes away by June 30, 2013.

Q And there's a tax on income tax, too?
A Yep. A 0.25 percent surcharge on personal income tax, though the increase would be cut in half if the state receives more federal stimulus funding than expected. The surcharge, for the 2009 tax year, lasts through tax year 2012 at the latest. (This is also a REGRESSIVE TAX. The obscenely wealthy should pay a much higher percentage as they have FAR MORE discretionary money left after they pay for their lifestyle than either middle class or especially the poor.)

Q What does the budget mean for education funding?
A The Legislature slashed $8.4 billion in funding for schools and community colleges. As a result, the California Teachers Association predicts class sizes will increase, thousands of teachers could be laid off and programs will be eliminated. Funding was maintained to continue smaller class sizes in grades K-3, and school districts will have more flexibility in how they spend money geared for specific programs. (ANTIs hate public FACT based education. They jump at anything they can do to reduce FACT based public education or reduce the number of people exposed to good education. Very sad. They win again thanks to Prop 13 unfair requirements for a two thirds majority.)

Q What about other colleges and universities?
A The University of California and California State
University systems will each suffer a 10 percent cut. Annual fees for CSU students will rise to $3,354 from the current $3,048. (Worst possible kind of fee increase. This will be fewer educated Californians particularly those who come from the lowest income levels. The poor will continue to be locked into their low wealth status with less chance to use education to get out of their income level.)

Q What happens to those on welfare programs?
A CalWORKS, the welfare-to-work program, will not provide cost-of-living increases. Those who receive state and federal supplemental income, such as certain seniors or disabled recipients, also will not get an increase. (The poorest of the poor get benefits cut. As a prominent Republican said (Bob Dole), "the poor do not contribute to campaigns.")

Q Will the Department of Motor Vehicles and other state offices remain closed due to state worker furloughs every two weeks?
A Yes, for now, until labor unions and Gov. Arnold Schwarzenegger's negotiators find a way to trim $1.4 billion in payroll expenses. The next state office closing is today.

Q Is there any good news in the budget?
A Well, yes. The budget includes tax credits for businesses that invest in California, and it ensures that previously approved public works projects can continue. (Tax credits mean tax breaks for the grossly wealthy who already do not pay their fair share of taxes)

Contact Edwin Garcia at egarcia@mercurynews.com or (916) 441-4651.