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 On February 13, toiling under the looming February 23rd deadline for the Special Legislative Session on California’s fiscal crisis, the Senate Budget Committee approved a package of cuts to reduce state spending this fiscal year by $1 billion. As part of that package, the Senate committee adopted all the mid-year cuts to the Resources Agency that the Governor had proposed when he declared a fiscal emergency in January, including $1.4 million from the Department of Fish and Game’s Biodiversity Program, and $1 million from California State Parks.
The package was passed along party lines with the Republican committee members abstaining from the vote. The Assembly Budget Committee met the following day and approved the package. The entire Legislature approved the cuts before the week was out. These mid-year cuts, which only save $1 billion now, reduce the expected deficit during the next fiscal year by roughly $8 billion.
Prior to these votes, there had been talk of instituting new fees to close the state budget gap, most notably a fee on home insurance policies to help fund the California Department of Forestry and Fire Protection. However, the only revenue enhancement measure discussed would have closed a yacht-sized loophole in the state’s tax code which allows individuals to avoid paying sales tax on large items like boats, motor homes and airplanes if they take possession of the craft outside of California and do not immediately bring it into the state. The measured needed the support of two-third of the members, but failed to meet that target without support from republicans.
For more information please contact Tina Andolina.
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