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8A Page 7 'Veto' Continued from Page 1... He did not reference the Republicans' objections that the revenue measures in the package required a 2/3 vote, rather than the simple majority vote used to pass the measures by the Democrats. The package of 12 majority vote-only bills aimed to cut state expenses and raise revenues to close the state's $40 billion, 18-month budget deficit. ,t achieves about $18.1 billion General Fund savings, spilt roughly into $9.3 billion in new revenues and $8.7 billion in cuts. Most of the bills were joined to AS 1 x 2, the new property tax measure - meaning that if that measure was vetoed, the others would not take effect. Several of the bills included "economic stimulus. provisions dealing with hospital construction, surplus property, CEaA, public-private partnerships and design-build rules relating to transportation, local transit and bond acceleration. These measures passed with bipartisan support - but evidently did not go as far as the governor wished. In particular, he appears to be pressing for greater concessions in the areas of environmental compliance relating to infrastructure projects, and retief from various labor protections. What's next? Both houses adjourned the First Extraordinary Session when they adjourned last night, but the governor has said he will call a new extraordinary session so that they can continue to work on a budget solution. It appears now that both houses may remain in recess until January 5, when they will try again to pass a deficit reduction package in the new extraordinary session. . League Review Continues While the governor has said that he will veto the budget package, it seems very possible that the package that passed yesterday could provide the basis for anew, revised proposal taken up for vote in January. For that reason. League staffwlll continue our review of these measures. For a preliminary review, please see "2008 December Budget Bills: Preliminary Summary", p. 1. 'December Bills' Continued from Page 1... AS 1x 2 (Evans) - State Tax Increases and Swaps. This measure is the heart of the proposed Democratic revenue package, which attempts to increase state revenues while avoiding the legislative 2J3rds vote requirement for new taxes. This measure would eliminate the state gas tax and reduce the state's portion of the sales tax on gas (total reduction $4.7 billion), while clarifying that local sales tax levied on the sale of gas Is not affected. The measure then imposes a permanent ~ cent Increase in state sales and use tax. a 2.5% increase in personal income tax, and a 9.9% 011 severance tax (total increase $4.6 billion). Because the state tax inaease is offset with an equivalent reduction, the Demoaats maintain this Is not a state tax increase. The loss of revenue from the elimination of the state gas tax and the state portion of the sales tax on gas would be offset by a new fee on gas Imposed pursuant to SB 11 X1. AS 1x 3 (Evans) - Budget Cuts. This measure would impose additional cuts and reductions to the state 2008-09 budget, including various cuts to state programs and employee compensation. Of specific importance to local governments, this measure includes a $156 million cut to transit; eliminates the $34.7 million reimbursement to local governments for implementing the Williamson Act: and reduces COPS and Juvenile Justice funding by $17.7 million for'each program. AB 1x 4 (Evans) - Education. Reduces state spending on education by $2.5 billion through various means. S8 1x 5 (Ducheny) - Health and Human Services. Makes a variety of cuts to social service programs. 2