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Curry: Budget deal will have drastic impacts on California’s economy PDF Print E-mail
Written by Rebecca Curry   
Wednesday, 22 July 2009
On May 19, Californians tried to tell the governor that they were tired of the mess he’s made of the California budget.


Voters tried to tell him that they approved of the budget the Assembly had passed earlier, the one that he vetoed.


Voters sent a clear message that they wanted a balanced budget solution that includes revenue increases.


In fact, according to an April 30 Field Poll (www.field.com/fieldpollonline/subscribers/Rls2306.pdf):


  • 74 percent of California voters support increasing tobacco taxes;

  • 73 percent of California voters support an oil extraction tax;

  • 63 percent of California support raising the state income tax for top earners.


Every other oil-producing state in the union taxes the extraction of oil from its lands – including Texas and Wyoming. Even Sarah Palin raised the oil severance tax in Alaska to 25 percent in 2007.


The California Budget Project estimated a 9.9 percent oil severance tax would bring it at least $1 billion to state coffers. If oil prices rose again above $100 a barrel, then we could see $2 billion in revenue per year. Given the high likelihood of such increases, an oil severance tax would be a significant long-term boon to the state's coffers, since oil companies can't exactly shift production out of state, since oil is only going to become more valuable over time.


And that money could help prevent the most egregious human services cuts that were agreed to in the budget deal – the cuts to Healthy Families that will cost 500,000 children their health care coverage, the cuts to In-Home Supportive Services that people need to survive.


Voters don’t want drastic cuts to the programs Californians depend on. Voters don’t want to close schools and parks. And voters don’t want $2.5 billion a year in more corporate tax breaks for a handful of the world's largest corporations. Or to lose billions in federal funds because of stupid cuts.


Californians expect choices to be made that keep teachers in the classroom, keep public safety personnel on duty, keep infrastructure projects moving, keep our hospitals operating and our cities and county governments open to serve us.


Californians expect revenue increases to come from the corporate chief executive officers who receive astronomical profits from doing business in California.


Oh, and that whole “the rich are leaving California” mythology was debunked two weeks ago by a Public Policy Institute of California analysis of the census (www.kcra.com/money/20017385/detail.html). In fact, the study concludes that the poor are leaving California, not the rich. Which is just what the Republican Yacht Party wants.


Years of shortsighted political pandering to oil companies and big corporations have left the state with truly staggering budget problems.

Tough choices have to be made, but Californians demand and deserve better.


A budget that preserves services all Californians need and positions our economy for recovery is the only solution.


This new budget preserves billions of dollars in tax cuts for oil companies and the state’s biggest businesses.


It will have drastic impacts on California’s economy.


It will:


  • Drain $24 billion from California's economy, stunting the state's recovery efforts;

  • Drive up the unemployment rate by more than two percent, plunging California further into recession;

  • Deny 300,000 students a college education and increase class sizes in our public schools, making California less competitive;

  • Decimate public safety and the public services that maintain our quality of life and attract businesses;

  • Result in a loss of billions in federal funds.


It does not matter to Californians what the Republican Yacht Party and the governor promised Grover Norquist.


The last time I checked, he neither lives nor votes in California.


I do.


Rebecca Curry lives in Kelseyville.

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Comments (5)Add Comment
The Budget For The Rich
written by socialworker, July 22, 2009
Thanks for your intelligent outrage, Becky. This so-called balanced budget appears to be on the backs of the poor and disadvantiged. Of course. The cuts to the IHHS program, alone, is devastating- not to forget Healthy Families and mental health services in Lake County. We, also, cannot afford to have The State take money from our County. Carol Hutchinson is going to try to break it down for us at the IHHS BOS ADvisory meeting in Lakeport today @ 1:30- public is always invited. Peace.
Ken
I didnt vote for my taxes to be raised by Rich White Democrats
written by bearer, July 22, 2009
The writer is obviously unaware of how the state finances itself and blatantly dishonest in forgetting Davis was kicked out for his inability to control the rich white democrats in the senate and house.

The writer is also unaware that the richest group politicaly in Calfornia is Rich White Democrats.
That is who controls our state, Rich White Democrats with their hands in the pockets of government who has its hands in the pockets of special interest groups.

These rich white democrats tax the poor with special use taxes on every item possible to squeeze every last dime out of the working class and poor. These taxes are spent on the rich white democrats friends special jobs that meet once a month and get paid $100,000 for that.

To constantly spout the well if you do not pay more taxes you will loose police, fire and teachers is a rich mans scare tactic. The truth is, the special friends of the rich democrats are robbing the state treasury thruogh the back door.

I agree the teachers need a fair pay scale. What is wrong with the system is all the leeches siphoning the money from the kids by claiming "special" administrator status when in fact those administrators are the ones hurting the kids education.

This thing with tax the oil more is just another hidden tax the poor scheme. Big government is going to take the money from the oil company instead of directly from the taxpayer. Either way, the poor are hit hard with higher gas prices.

Given the Rich White Democrats have controlled Californias purse for the last 30 years, maybe it is time to start holding these Rich White Democrats accountable for what has happened to our state.
Democrats weren't running Enron
written by Grace OMalley, July 23, 2009
when it did its best to bankrupt California through fraudulent energy charges. Democrats don't want to deprive children of education or shrink government until it's small enough to drown in the bathtub.
And you've forgotten our previous inept Republican governors.
Hurts when the truth is democrats control $$$ for 30 years
written by bearer, July 23, 2009
and you cant blame anyone else for the democrats stupidity that brought us to bancruptcy.

No one wants kids education to shrink, in fact we want it to return to the top 10 in the country instead of the bottom 10. We just want the money spent on children and not adults with jobs that serve no purpose other then to collect a paycheck.

To bad California can't just print more money like Washington to cover the money shortfall. smilies/cheesy.gifsmilies/cheesy.gifsmilies/cheesy.gif
More Tax Dollars
written by cantdrive55, July 29, 2009
If they let the oil companies drill, they call it offshore but its really sideways from the coastline, the state would be able to raise $15 billion per year without raising taxes on anyone or anything else and the increased supply of our special blend may even lower prices.

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