AgdaPkt 2008-07-21 - Laserfiche WebLink

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'Budget' Continued from Page 1... Citizens Options for Public Safety (COPS)/Juvenile Justice Grant Program: The committee voted to approve funding for these programs at the FY 2005-06 funding Jevel of $100 million for each program ($200 million total). This is less than the FY 2007-08 amount of $119 million each ($238 million total) and the Governor's proposed funding levels for FY 2008-09 of $107 million each ($214.2 million total). Booking Fees: The committee members voted 'to eliminate funding for Booking Fees ($35 million). They also voted to eliminate state funding for Rural Sheriffs ($18.5 million). Atter the vote, a Department of Finance representative reminded the committee that the Governor supported Booking Fees funding and later told League staff that retaining local public safety funding remains a high priority for the Governor in the final budget negotiations. League. CSAC and CSDA Ask Legislature and Governor Not to Borrow Local Property Tax or Transportation Funds The League, California State Association of Counties (CSAC) and Special Districts Association sent a joint letter to the Governor and Legislature this week. The letter expressed appreciation for the fact that neither the Governor's proposed budget nor the Conference Committee approved budget contains provisions suspending Propositions 1A (local property taxes) or 42 (transportation funds). The letter reminded recipients that the suspension of constitutional protection of local revenues is an inappropriate means to accomplish a short-term goal at the expense of much-needed long-term stability. The letter is posted on the League's Web site. (htto:1 /www.cacities.ofQ/resourcefiles/27006.JointlocaIAssnLetterCMJulv 1 02008(2) ,doc). Democrats Introduce Major Tax Proposal to Close Budget Gap The fireworks began soon after the Democrats introduced their $8.7 billion tax proposal to help close the $15.2 billion budget shortfall this year. Republican legislators were quick to criticize the proposal as unworkable and dangerous given the current economic strain Califomians are suffering with high gas prices, rising food costs and more. Republicans said that this tax raise will just raise expenditures and the state needs to cut spending, not increase it. Democrats countered that these revenues would restore stability to the state budget over the long tenn and protect education and other vital state programs. The Democrat revenue-generating proposal includes: $5.6 billion: Raise tax rates for wealthiest Californians by creating new tax brackets (10 and 11 percent) for the highest earnings. The current highest bracket is 9.3 percent. $1.1 billion: Suspend the corporate loss deduction for three years. $470 million: Restore the franchise tax rate from the current amount of 8.8 percent to the 1997 level of 9.3 percent. $215 million: Reduce the dependant income tax exemption for households with an annual adjusted gross income of more than $150,000. $815 million: Suspend tax adjustments in specific categories across all income brackets, which would raise income taxes for everyone. $1.5 billion: Waive penalties for late tax payments so individuals and corporations behind on taxes can pay without penalties. Where Things Go From Here As of now, no vote is scheduled for the budget package. It is expected that discussions will increase between legislative leadership and the Governor. It is also not clear whether or not the Republicans will 9A Page 6 2