Democratic Lt. Gov. John Garamendi on Friday asked state leaders to block Gov. Arnold Schwarzenegger's proposed $4.5 billion in spending cuts and called for additional taxes, including raising the state's vehicle license fee.
Schwarzenegger said Thursday the state is facing an $11.2 billion shortfall in the current fiscal year and an additional $13 billion through June 2010 without emergency action. The Republican governor proposed $4.5 billion in cuts to education and social services, in addition to $4.7 billion in tax increases, most notably a 1.5-cent hike in the state sales tax.
Garamendi, who is running for governor in 2010, praised Schwarzenegger for proposing a broad package of new tax increases, noting how it marked a dramatic shift for a GOP governor once opposed to new taxes. But Garamendi said further cuts would damage schools, public employees and services for the elderly and disabled.
He was joined by leaders of nearly a dozen education, labor and health groups, as well as about 30 college students outside the Capitol.
"The governor calls for another $4.5 billion of cuts, and my answer is 'no,' " Garamendi said. "Enough already. We've already devastated the essential services that we need."
Senate President Pro Tem Don Perata, meanwhile, said the most positive possible outcome of the special session would be that lawmakers agree to place tax proposals on the ballot, a delayed solution he acknowledged would force the state to borrow cash at significant costs early next year.
Appearing on KQED's Forum, he said he doubted that any tax proposals could be approved in the Legislature because he believes the governor has no more sway with GOP lawmakers than he did this summer.
"You want to put some taxes on the ballot and let the voters decide if, in fact, we want to do that," Perata said. "I think that may be the best compromise that we're going to have. It's not an immediate solution, which will really affect California in the credit market."
Republicans have said tax increases would damage the sagging economy by discouraging spending. Assembly Republican leader Mike Villines said Friday that it would be "crazy" to think about imposing more taxes at this time. But Garamendi argued Friday that new taxes would be "recycled back into the California economy" through state government spending.
Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.
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