Capitol Alert

December 13, 2007
Breaking budget news

There's a bunch.

First, Kevin Yamamura has the story that Gov. Arnold Schwarzenegger has decided to seek across-the-board cuts to state operations.

Second, Aurelio Rojas reports that Assembly Speaker Fabian Núñez wants tax hikes on the table.

In a news conference today introducing Warren Furutani to the Sacramento press corps, Núñez took questions about everything from the state of health-care negotiations to the budget.

As for taxes, Núñez specifically cited the possibility of upping the vehicle license fee, enforcing the use tax and and ending tax breaks for overseas corporations. Rojas reports:

"I think a tax on Internet purchases, obviously, ought to be on the table," Núñez told reporters at a Capitol briefing.

"Any tax credits to major corporations that are overseas and milking California, but not paying taxes here, we've got to look at those tax loopholes," Núñez said.

By closing loopholes, Núñez said, the state can "generate billions of dollars." The speaker said he's discussed with the governor the possibility of increasing the vehicle license fee.

The speaker promised a "conversation" with the public about the realities of the budget.

With deep cuts to the budget, he said, the public needs to know "how many schools would shut down, how many universities would shut down, how many firefighters would be lacking in case of a fire or natural disaster, how many fewer police officers are going to be patroling our streets, how many more criminals are we going to be putting out on the street."

He acknowledged taxes are unpopular but said, "I simply don't think the way you balance the budget is by doing a poll and seeing what is popular with the voters and what isn't."

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