The LA Times reported that the current Democratic budget proposal relies on the vehicle license fee and a half-cent sales tax hike to close half the budget gap, having backed off an income tax increase (which would have been directed at the highest bracket) and increased tobacco taxes.
I am not sure why backing off the tobacco tax gave the Democrats any political advantage. There's little to no public support for tobacco in this state. I'd speculate that either 1. the tobacco companies still had some clout or 2. it just wouldn't raise enough money to matter.
There's a bridge loan of $11 billion that's set to run out in August but some recipients of state money may not get paid on July 1. Payments would be made up later but it will be difficult for some facilities, such as Medi-Cal clinics, to bridge the gap.
UPDATE: Pathetic Earthlings translates the vehicle license fee into dollars.
Posted by Justene Adamec at June 25, 2003 08:03 AM | TrackBack
$11 million -- or billion? Not that our state government seems to care one way or the other.