California State Budget

Yesterday the Legislature failed to pass the Democrat budget-balancing plan. This Democratic proposal called for $8.1 billion in cuts and $8.1 billion in new revenues over the next 19 months.

AB 7xxxx, the Spending Reduction Bill, would have made $600 million in cuts to SSI/SSP over the next two years by eliminating cost-of-living increases. This bill was defeated in the Assembly 40 to 30.

AB 6xxxx, the Revenue Bill, would have raised $8.1 billion in new revenues by reinstating the vehicle license fee to the level it was at when Governor Gray Davis was in office and temporarily freezing the state’s income tax tables to last year’s rates. This bill was rejected by the Assembly 41 to 31.

The Senate never took the bills up for a vote, but Senate Republicans are opposed to any increases in taxes.

The Legislative session officially ends on Sunday. On Monday, December 1, 2008 the newly elected and re-elected members of the Legislature will be sworn in. It is expected that the Governor will call the new Legislature into another special session.



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World Institute on Disability