Lawmakers are considering a last-minute change in the budget package that would eliminate the 12-cent per gallon tax on gasoline as part of negotiations to secure the final vote in the Senate from Sen. Abel Maldonado, R-Santa Maria. The tax was expected to raise $2.1 billion through June 2010.
Legislative leaders are examining various ways to make up the difference, including a greater reliance on federal stimulus funds, line-item vetoes by Gov. Arnold Schwarzenegger and a change in the 5 percent income tax surcharge, sources said.
Maldonado has demanded three constitutional amendments to secure his vote for the budget. He wants a ban on legislative raises during deficit years, no pay for lawmakers once a budget is late and a switch to a statewide open primary comparable to the top-two system that local governments use.
There appears to be support for the ban on legislative pay raises, but it remains unknown whether legislative leaders have secured enough votes for the open primary change or the elimination of pay during a late budget.
Senate President Pro Tem Darrell Steinberg, D-Sacramento has been meeting with Assembly Speaker Karen Bass, D-Los Angeles, Assembly Republican Leader Mike Villines, R-Clovis and Schwarzenegger legislative secretary Chris Kahn throughout the night to determine whether there are sufficient votes to move the package this morning. Maldonado emerged from a meeting in Schwarzenegger's office around 1 a.m.
The state Senate is scheduled to return at 1:30 a.m.
Update (1:40 a.m.): Session has been moved to 2:15 a.m. Schwarzenegger is expected to find $600 million to $700 million in line-item vetoes to make up part of the gas tax revenue. Legislative leaders plan to reject Maldonado's proposal to eliminate pay during late budgets because they believe it is unconstitutional.
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