The Senate passed two measures today to end the state’s 81-day budget stalemate and restart payments to schools, community colleges, day care centers, health care providers and others.
The Legislature originally approved the budget early Tuesday morning, but the Governor said he would veto the spending plan without changes. The two measures passed today make the tweaks necessary to gain the Governor’s support.
SB 28 removes provisions in the budget increasing tax withholding 10 percent on all taxpayers and providing tax amnesty for corporations and replaces them with higher penalties on corporations that significantly underreport their taxes. The vote was 22-14.
Senate President pro Tempore Don Perata (D-Oakland) said today he supports a new proposal that would help end the state’s budget stalemate and has scheduled a Senate session for 4 p.m. Friday to vote on it.
The new proposal, discussed with the Governor and legislative leaders, makes a few changes to the previously approved budget, sent to the Governor on Wednesday. The plan removes provisions increasing tax withholding 10 percent on all taxpayers and providing tax amnesty and replaces them with higher penalties on corporations that significantly underreport their taxes.
The Senate approved a spending plan today that protects funding for schools and other core state services but covers a $17 billion deficit with a slew of tough cuts and one-time revenue accelerations.
The budget bill was approved on a 28-12 vote. The Senate also passed measures sought by the Governor to reform the budget and securitize the lottery.
Democrats have fought all year long to protect the state’s most vital services – schools, hospitals, in-home care – from being slashed. This budget protects those fundamental building blocks for California’s future.
Democrats have also advocated for new ongoing revenue, which is the most sensible and fiscally sound solution to the state’s fiscal problems, but the Governor could not get the Republican votes for that.
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