Cali Biz Groups Back Budget
More on state budgets. Perhaps the most highly publicized budget struggle this year has been the effort to bridge California's $41.6 billion gap. Governor Schwarzenegger and the California budget have made headlines since last November.
Proposed solution to the massive deficit has come in the form of 6 proposals (Propositions 1A-1F) that will go before voters in a special election on May 19. The proposals include tax increases as well as spending cuts and efficient measures. The Los Angeles Area Chamber, along with other business groups from across the state, has endorsed the the proposed budget fixes. Here's how the LA Chamber describes the measures:
Props 1A-1F is a package of budget reforms designed to aid short-term economic recovery and enact long-term solutions to the budget crisis. They address many of the guiding principles for reform that the L.A. Area Chamber developed in June 2008. Props 1A and 1B will help put an end to the “boom-and-bust” budget cycle that has failed the state by creating a rainy-day fund, establishing a spending cap and restoring the Proposition 98 funding for K-12 education that has been loaned to the General Fund. Props 1C, 1D and 1E will more fully utilize the potential of the state lottery and reallocate a portion of the dedicated funds generated by Proposition 10 and Proposition 63. Prop 1F will prevent salary increases for state elected officials when a deficit is expected.
Gary Toebben, President & CEO, Los Angeles Area Chamber of Commerce, had this to say about the measures:
"The passage of Props 1A, 1B, 1C, 1D, 1E and 1F are the necessary final steps we all must take to balance the $42 billion state budget deficit. These propositions, while not perfect, are the best available solution to reform the broken budget process that has crippled California for far too long and will help restore fiscal health to our state."
Toebben was also quoted as saying:
"We're concerned that if this doesn't pass, the Legislature will come back and pass taxes that are more targeted towards business."
Click HERE for the LA Chamber's position on the proposed budget solution.
For a recap of the struggle over the California budget and this proposed solution, check out this article from the LA Business Journal.
For more info on California's budget issues, check out the state's budget website.