“Because the budget passed today relied on the governor’s more conservative revenue projections it was a far better outcome for Californians than the plan legislative Democrats originally put forward. Their plan optimistically assumed $3 billion more in tax revenues than the governor’s, and they proposed to spend it all. However, the budget approved today still includes major spending increases for new programs and expands existing state programs, which will cost much more in future years and create pressure for additional tax increases.
“I am disappointed that the $47 billion voter approved tax increases from Proposition 30, which support this budget’s record-high state spending level of $230 billion, did not satisfy the Governor and legislative Democrats. In fact, they included an additional tax increase on managed health care plans and borrowed $500 million from AB 32 cap and trade tax revenues to bolster spending further and grow our state’s debt-load.
“While Senate Republicans support many elements of this budget plan – such as additional funding for education programs and debt repayment – other features – such as the failure to prioritize the remaining $25 billion in budgetary debt and the $180 billion of unfunded retirement liabilities is greatly concerning. Simply put, the state budget will never be in good fiscal shape until we deal with these debts and liabilities. We need to pay our existing bills before we make new spending commitments – that’s just common sense. ”