New Taxes Will Not Stop Spending Addiction
President Ronald Reagan once told us “Governments don't reduce deficits by raising taxes on the people; governments reduce deficits by controlling spending and stimulating new wealth.”
It’s amazing how many people continue to ignore this message.
I am deeply troubled by the latest budget plans produced by the majority party in both the Senate and Assembly. The proposed Senate budget contains a record $11.5 billion tax increase, although the plan lacks the courage to tell the public which taxes it would raise. The Assembly budget proposal also contains a $6.4 billion tax increase, but again, the majority party has not told the public which taxes they would increase.
The competing plans produced this month by the Senate and Assembly Budget Committees reject every single cut in spending that had been proposed by Governor Schwarzenegger is his May budget revision last month. Even with the proposed cuts, I had problems with the Governor’s plan, because I felt and still feel that the May Revision would have led to greater deficits in future budget years.
But the plans produced this month by the two legislative budget committees go far and above what the Governor proposed last May, and I will not support either of them. The majority party has largely rejected the Governor’s plan to lease the California lottery, and instead balances the budget with billions in new taxes.
Senate Republicans are still prepared to support a budget that cuts spending and puts an end to the structural budget deficits that have plagued state finances for nearly a decade. But that’s not what the people of California are getting.
I did not initially support the Governor’s plan to borrow against future state lottery revenues. It isn’t the solution that north state constituents and all California families deserve when it comes to out-of-control state spending. But the Governor proposed a far more responsible plan last May, when compared to what the majority party put on the table this week. These new plans include record spending levels and record tax increases.
Senate Republicans made it very clear to both the majority party and to the Governor that we expect spending cuts to balance the budget. Unfortunately, the plans proposed this week by both legislative committees will lead to record tax and fee hikes. I can’t support that. I will not support that.
I had major concerns about the Governor’s plan to lease the California Lottery to help close the budget gap, and did not support the Administration’s plans to temporarily raise the state sales tax by one percent if the lottery proposal was rejected by voters. But it appears the majority party has rejected the idea altogether.
My concern with the Governor’s proposal was the message it sent to taxpayers. It essentially told them to approve of a $15 billion borrowing plan to balance the budget, or hand over their wallets for a tax increase. I didn’t support that proposal because I do not believe that voters sent us here to threaten families and businesses with the prospect of higher tax rates. My constituents believe, as I do, that government should live within its means and quit spending more money than it has.
However, since the majority party has apparently abandoned the Governor’s lottery proposal, the new message is a simple one: hand over your wallets for a tax hike. My response is never. I will not support new taxes, period.
I believe all budget proposals from the majority party and the Governor should take several factors into account. Our constituents are paying record prices at the gas pump, more for goods and services and thousands of homes are falling into foreclosure. The budget should address these problems. The budget proposals released this week do not. It does not solve our problems. Indeed, it exacerbates them.
I will not support any type of new tax or fee to subsidize the big spending interests in Sacramento. The record deficit facing the State of California is the result of years of out-of-control spending and the mismanagement and waste of hard earned tax dollars. A new field poll confirms what Senate Republicans already know. A vast majority of Californians do not support any type of new tax or fee increase, and Senate Republicans stand united in our pledge to cut spending to balance the budget.
We are prepared to work with Governor Schwarzenegger to accomplish this goal, and have already submitted a list of spending reductions to the Governor and the majority party to balance this budget. Working families don’t deserve new taxes. They deserve a state government that never spends more than it has.
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Wildfires Devastate North State
I am pledging the support and assistance of both my Senate and District Offices to help the hundreds of homeowners who have either lost homes or have been displaced by wildfires that are burning out of control in Northern California. I recently got a first hand look at the damage during a tour through the Butte County community of Paradise, where I saw several homes that had been leveled by the wind-drive Humboldt fire.
It’s one thing to watch this destruction on television, but it’s far more sobering to see this damage up close and in person. I’d like to personally thank each and every one of the brave men and women who faced down these flames in Paradise and elsewhere in an effort to save homes and property from destruction.
California Department of Forestry and Fire Protection (CAL FIRE) Division Chief Bob Wallen led this tour through Paradise, pointing out where homes or outbuildings once stood. I also met with one couple who nearly lost a home and a small winery to the fires. Nearly 150 homes and outbuildings were either destroyed or damaged during both the Ophir and Humboldt Fires, which burned nearly 25,000 acres. Damage is in the millions of dollars.
Elsewhere, thousands of acres have been scorched by hundreds of wildfires caused by lightening strikes last weekend. Additional homes and business have been lost throughout my district. Thousands of homes remain threatened by these fires, which are nowhere near containment.
My heart goes out to the families who lost everything and the thousands of others who are in danger of losing their homes. I know that CAL FIRE is using every available resource to fight these fires, but with so many of them burning at once, containment will not be an easy task.
I have since taken steps to amend legislation to help Butte County homeowners who lost homes and property during the Humboldt and Ophir wildfires, and will probably amend it further to include damage from all 12 of my Northern California counties. Both AB 1759 and SB 1064 will allow homeowners and businesses to carry forward losses resulting from the wildfire disaster into future taxable years and will ensure that the standard property tax deductions continue for those who lost their homes. Both measures will also reimburse local governments for reductions in property tax revenue resulting from wildfire-related decreases in property values.
In addition, I have dedicated a portion of my State Senate website to wildfire victims in the north state, listing the types of emergency services offered and additional links where people can access further information and assistance. Links to legislation that I have amended on behalf of Butte County fire victims can also be accessed on this page.
The information on my website contains links to Executive Orders issued by Governor Schwarzenegger in response to the these Northern California wildfires, links to the California Department of Insurance, informational tips on how fire victims can protect themselves from fraud and advice and information on hiring contractors for repairs. The page can be accessed here.
I’d like to thank Governor Schwarzenegger and his Administration for his quick response to aid fire victims in my Senate District. The emergency proclamations issued by this Governor have given CAL FIRE the additional resources they need to fight these fires.
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Cyber Command Bill Passes Final Legislative Test
SCR 117 passed its final legislative test with flying colors earlier this month, getting unanimous, bi-partisan support during an Assembly Floor vote. The measure will now be Chaptered with the California Secretary of State, and represents another clear signal that there is unanimous support in the California State Legislature for a new military command in Northern California.
The final vote for SCR 117 demonstrates the State Legislature’s unanimous support for Beale Air Force Base in Yuba County to be the best and only choice to host the United States Air Force (USAF) Cyber Command Operations. SCR 117 stresses the advantages of Beale, the size of the base, its location and the ability to expand to take on new responsibilities.
Passage of this measure sends a very strong message to the Pentagon and the United States Air Force (USAF). This vote tells USAF leaders that Cyber Command Operations are wanted and needed in the north state. I am hopeful that passage of this measure will convince planners that Beale AFB is the best choice for this new command, and the best choice for our nation’s security.
The USAF recently announced its intention to establish Cyber Command as a new operation to conduct cyber warfare, electronic warfare and effectively protect critical United States infrastructure networks that support telecommunications systems, utilities, and transportation. The new command could bring hundreds of Air Force personnel to Yuba and Sutter Counties, creating thousands of private sector jobs and new businesses to support the new mission. One of my primary goals as your State Senator is new job and business creation.
The USAF currently houses cyber-warfare operations at Barksdale Air Force Basein Louisiana. Several communities across the nation are competing for the new command, and the California effort has drawn the support of Governor Schwarzenegger, every member of the California Congressional Delegation and local counties and cities. The final vote on my bill in the State Assembly demonstrates that the State Legislature is also united in the quest to bring Cyber Command to Beale AFB.
It’s no secret that the USAF already recognizes our north state base as being at the forefront of the future when it comes to high technology. California’s reputation in this field is already well established. This state is home most of the learning institutions nationwide that are designated by the National Security Agency and the Department of Homeland Security as National Centers of Academic Excellence in Information Assurance Education. Beale AFB is strategically located, has room to expand and is truly the best choice for this new command.
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Unanimous Support for Rural Schools Measure
SJR 23 also passed its final legislative test recently in the State Assembly, receiving a unanimous vote of support, and is now Chaptered with the California Secretary of State. The measure urges Congress to reauthorize and fund the federal Secure Rural Schools and Community Self-Determination Act of 2000, and give rural schools and rural school districts a stable source of federal funding.
The strong, bi-partisan support for my legislation sends a strong message to Congress to fully fund our rural schools and roads. The permanent reauthorization of this program is vitally important to all of my constituents in Northern California.
SJR 23 states, in part, that “rural schools are dependent on federal revenue-sharing programs, including federal forest payments, for maintaining vital educational services and programs, and to ensure an equitable education for all students. Many of California's county public works programs will be crippled without stable, predictable, long-term funding from the act, causing the local road network to suffer long-term degradation and putting communities at risk for public safety emergencies due to cuts in staffing and operational activities.”
39 rural California counties currently receive $69.5 million in funding under the Secure Rural Schools and Community Self Determination Act, including eleven out of 12 counties that comprise the 4 th Senate District. If Congress does not take action soon to either pass an extension of the federal program, or find some other funding mechanism, schools will be forced to lay off teachers or close completely.
Federal payments to rural schools in California first started in 1908, with the enactment of the National Forest Revenue Act (NFRA). The bulk of those revenues to schools were traditionally generated by sales of timber on National Forest land. But environmental restrictions that cut the federal timber sales program in the 1990’s dramatically reduced the amount of money returned to schools.
In response to the shrinking revenues from reduced timber sales, Congress enacted the Secure Rural Schools and Community Self Determination Act in 2000 to stabilize county payments from National Forestlands. However that federal legislation has expired, and Congress has yet to take action to reauthorize the program. As a result, rural districts are faced with losing millions of dollars in funding that they have traditionally relied upon.
Our rural communities deserve a long-term and stable source of funding for schools and local roads. I am hopeful that the passage of SJR 23 will convince Congress to provide rural families with the assistance they deserve.
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Did You Know?
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Former President Herbert Hoover once made his living by mining for gold in Nevada County?
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In 1866 the Colusa County Board of Supervisors took controversial action by voting to raise the County Auditor’s salary to the vast sum of $500 per year?
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Glenn County was named for Dr. Hugh J. Glenn, who was the largest wheat farmer in the state during his lifetime?
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Del Norte County was founded in 1857, from part of the territory of Klamath County following the California Gold Rush? Klamath County itself ceased to exist in 1874.
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Legislative Calendar/Deadlines
June 7, 2008 -- Last day for policy committees to meet and report bills.
July 3, 2008 -- Summer Recess begins at the end of this day’s session if Budget Bill has been enacted.
July 4, 2008 -- Independence Day Holiday
August 4, 2008 -- Legislature reconvenes from Summer Recess (J.R. 51(b)(2)).
August 15, 2008 -- Last day for fiscal committees to meet and report bills to the floor (J.R. 61 (b)(14)).
August 18-31, 2008 -- Floor session only. No committees, other than conference committees and Rules Committee, may meet for any purpose. (J.R.61(b)(15)).
August 22, 2008 -- Last day to amend bills on the floor (J.R. 61(b)(16)).
August 31, 2008 -- Last day for any bill to be passed. (Art. IV, Sec. 10(c), (J.R. 61(b)(17)). Final Recess begins upon adjournment (J.R. 51(b)(3)).
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June Milestones
Fireworks Safety Month (June 1- July 4)
National Healthy Skin Month
West Nile Season (Late June-Mid October)
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