• Arnold Schwarzenegger,  California Budget,  Darrell Steinberg,  Dennis Hollingsworth

    California Governor Schwarzenegger Rejects GOP Senate Leader’s Call to Reopen State Budget Negotiations Without Tax Increases

    arnold feb 17

    California Governor Arnold Schwarzenegger speaks during an event February 17, 2009 at the State Captiol in Sacramento, California. California lawmakers remained deadlocked Wednesday over a plan to increase taxes to tackle the state’s budget deficit as Republicans ousted their legislative leader for his support of tax hikes

    California governor Arnold Schwarzenegger held a noon time new conference on his State of California Website and rejected newley elected GOP Senate Leader Dennis Hollingsworth’s call to reopen stalemated California state budget negotiations with taxes off of the table. He said those Senators that think the California State Budget shortfall can be solved without new tax revenues do not know their math and need to retake math 101.

    The Quote:

    “Anyone that runs around, I think, and says that this can be done without raising taxes, I think has not really looked at it carefully to understand this budget or has a math problem and has to get back, as I said, and take Math 101,” Schwarzenegger said.

    In the meantime, the California State Senate has reconvened and Senate Democrat Leader Darrell Steinberg called up AB 3, the budget tax bill for a vote and it failed 23 to 12 (27 affirmative votes necessary for passage). Note: GOP Senators Cogdill, Ashburn and Cox did NOT vote along with Democrat Senator Correa.

    Steinberg then took to the floor of the Senate and said he would call up a vote every hour on the hour and update the state of the state if a budget does not pass today. This hour was a potential loss of federal transportation money.

    Stay tuned……

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  • California Budget,  Darrell Steinberg,  Steve Poizner

    California State Senate Remains in LOCK DOWN – California Budget Stalemate Continues While Steinberg Vows to Continue

    +++++ 11 AM Update+++++

    New California State Senate Leader Dennis Hollingsworth has called for re-opening Big 5 California State Budget negotiations while taking taxes off of the table.

    In a news conference with Senator Barbara Boxer, Senate Democrat Leader Darrell Steinberg rejects this approach and vows to continue to pursue one or two GOP Senators to vote for the current Big 5 proposal.

    Cogdill ousted with a hug

    State Senator Dave Cogdill, R-Modesto, gets a hug from Sen. Gloria Romero, D-Los Angeles, after he was ousted as Senate Minority Leader at the Capitol in Sacramento, Calif., Wednesday, Feb. 18, 2009. In a late night move, Cogdill was voted out of his leadership position and replaced by Sen. Dennis Hollingsworth, R-Temecula

    California State Senate Democrat Leader Darrell Steinberg continues to hold the Senate hostage and in “LOCK DOWN” (Senators cannot leave the Capitol) in an attempt to pass a California State Budget which includes tax increases.

    The state Senate reconvened Wednesday morning and lifted the call on the tax-hike part of the legislative puzzle.

    The roll was called and the votes remained unchanged around 8:30 a.m. 23 ayes. 12 noes.

    Senate Democrats immediately called for a private caucus off the floor.

    Senate President Pro Tem Darrell Steinberg, in a brief interview, reiterated that the Democrats’ strategy remains the same, despite the ousting of GOP leader Dave Cogdill late last night.

    “The question is does this mean we go back to square one and start over? Absolutely not,” the bleary-eyed Sacramento Democrat said.

    He is “focused on gaining the one additional vote” needed to pass the budget, he said.

    Negotiations continue with GOP Senator Abel Maldonado on his “WISH LIST” who voted NO on the budget late last night.

    It seems to Flap that a TIME OUT should be called and a continuing resolution ala Steve Poizner should be considered along with a special election in May.

    Stay tuned….

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  • Abel Maldonado,  Arnold Schwarzenegger,  California Budget,  Darrell Steinberg

    Shocker: California on the BRINK of Financial Collapse? Governor Schwarzenegger Ready to Send 20,000 Layoff Notices


    California on the Brink screams the Drudge LEDE.


    No, because California has been in financial trouble for some time now and RINO GOP Governor Arnold Schwarzenegger is the main cause for his inability to lead and govern the Golden State.

    So, where does California stand and what is the urgency?

    Lawmakers adjourned tonight until Tuesday after failing for the third consecutive day to muster an elusive final vote for the state budget package.

    The move came after Gov. Arnold Schwarzenegger said he would send 20,000 layoff notices on Tuesday and other administration officials warned of construction stoppages if the $40 billion budget shortfall and the associated cash crunch are not resolved.

    Senate President Pro Tem Darrell Steinberg, D-Sacramento, said the Senate would consider the critical tax increase bill on Tuesday morning, whether or not a third Republican senator comes forward to provide the deciding vote. He said the house would stay in session until the package was approved.

    “Bring a toothbrush, bring whatever necessities you need to bring,” Steinberg told senators as the house shut down for the evening.

    The tentative deal would bridge an estimated $40 billion budget gap through a massive mix of program cuts, borrowing and new revenues, including vehicle license fee increases and higher gasoline, sales and personal income taxes.

    Key elements require passage by a two-thirds majority of the Senate and Assembly – thus three GOP votes in each house.

    The California State Senate will reconvene at 10 AM this morning and the tax bill will be taken up. Should the Big 5 Legislative Leaders not be able to persuade one GOP California State Senator to flip their vote for the California State Budget with tax increases, the stalemate will continue.

    And, according to Democrat Senate Leader Steinberg, the Senators will be locked in the State Senate chamber until there is a resolution.

    Here are the details of the Big Five crafted plan.


    The plan would raise up to $14.4 billion through June 2010 by imposing a variety of temporary taxes. The higher taxes would be in effect for two years. However, Republicans would allow taxes to remain longer – two more years – if voters approve a state spending cap during a special election in May.

    Here are the specific taxes:

    • Increases the state sales tax by 1 cent on the dollar, generating $5.8 billion through the next fiscal year.
    • Raises the fee for licensing vehicles to 1.15 percent of market value, up from the current .65 percent. The move is projected to generate $1.5 billion. A portion of the fee will be dedicated to local law enforcement.
    • Adds a 12-cent gasoline tax, raising $2 billion.
    • Imposes a one-time, 5 percent surcharge on people who owe personal income tax at the end of 2009 to generate $3.2 billion. If the state receives more than expected from the federal government, the surcharge would be reduced to 2.5 percent.
    • Reduces the amount taxpayers can claim on a dependent care credit to the federal level of $100 instead of $300, adding $1.4 billion.
    • Redirects $201.6 million of tribal gambling revenue from the state Department of Transportation to the general fund over the two-year period. The money is intended to offset the effects of increased traffic around Indian casinos.

    The GOP Senate Caucus does not support the above tax increases and insist that more cuts in state government spending be made.

    Stay tuned as the California State Budget Stalemate continues.

    Flap will be live microblogging the California State Senate Session on Twitter (in the right sidebar) ——>

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