You are receiving this email because the email address was subscribed to our email list. Having trouble reading this email?
View it on our website.
PCL Insider: News from the Capitol
Democratic Lawmakers Propose Tax Increases to Save Crucial Education, Health and Transit Programs
The June 15th constitutional deadline to pass a budget has come and gone. The new fiscal year for California started on July 1st, two weeks go, but still we have no decision on how the state is going to pay its bills, and on exactly what programs will be cut, and how much. Now, with predications that the state will run out of cash in September, the Democrats in the State Legislature have showed their hand in the budget poker game with a proposed $9.7 billon tax increase aimed at closing in on this year's deficit gap.
In an attempt to save important programs such as public transportation and to continue funding air and water quality measures, Democratic lawmakers have proposed new policies to generate much needed new revenue. One major revenue proposal includes creating two new tax brackets for households earning over $321,000 or a joint income of $642,000. This plan is similar to proposals enacted under former-Governor Wilson that have subsequently been rolled back. The second major proposal generates new revenue by closing a tax loophole over the next three years that allowed big businesses to deduct net operating losses.
Republicans in the Legislature have drawn a line in the sand and are vowing to block any budget with tax increases. Passing a budget requires a 2/3 majority vote in both the Assembly and the Senate, meaning that at least some Republican votes are needed for final passage. Therefore, this new Democratic proposal faces a tough fight on the floor in both houses and will most likely result in returning to the negotiations table. California will remain the nation's leader (now two years running) for being the last state with a July 1 fiscal deadline to pass the budget.
Governor and Feinstein offer up another round of water bond talks, Legislature responds with a timely water package
Last Wednesday Governor Schwarzenegger and California Senator Diane Feinstein unveiled yet another iteration of a multi-billion dollar water bond, and urged the legislature to take action to place the water bond on the November 2008 ballot.
This new $9.2 billion proposal was presented as a "compromise." Indeed, their proposal is $2.6 billion less than the Governor's last proposal. However, this latest proposal still contains many of the most controversial elements of previous failed attempts to put together a water bond.
Most notably, the measure includes provisions that would limit future legislative oversight for water storage projects and projects affecting the Bay Delta, including the unprecedented continuous appropriation of $3 billion for water storage projects. If approved, the water bond would bypass the legislature and grant allocation authority to the defunct California Water Commission (which is a commission entirely appointed by the Governor and which currently has no appointed members).
The proposal also includes confusing language that seems to limit the Legislature's ability to engage in a solution to fix the Delta by requiring a two-thirds vote of the Legislature to change or amend any portion of the proposal's directives regarding the Delta.
The Legislature has responded with a water package of its own that does not include a new water bond. President pro Tempore Don Perata (D-Oakland) and Assembly Speaker Karen Bass (D-Los Angeles) announced Monday they will push a two-bill package including SB 1XX which would allocate existing funding to improve water storage and enhance water reliability, and AB 2175 (Laird/Feuer) which would establish requirements to reduce per capita water use in the state by 20% by 2020.
While the jury is still out on Governor Schwarzenegger and Senator Feinstein's proposal, the Planning and Conservation League, as well as several other environmental, fishing and environmental justice organizations support the legislative package proposed by Senator Perata and Assemblywoman Bass. Both SB 1XX and AB 2175 provide timely solutions to ease the water challenges facing California.
Top Priority Air Quality Legislation PassES the State Assembly - SB 974 is one step closer to the Governor's Desk
After months of waiting, SB 974 (Lowenthal), the Clean Ports Investment Bill, passed out of the State Assembly by a vote of 45 to 23. SB 974 is the most important piece of legislation currently before the Legislature to improve the state's air quality. By collecting $30 for each shipping container processed at the ports, SB 974 provides a consistent stream of funding to address the severe air pollution caused by the movement of goods into our state's three main ports.
Operations at the ports of Long Beach, Los Angeles and Oakland along with related freight transport generate 30% of the statewide emissions of nitrogen oxide (a smog-forming pollutant) and 75% of all diesel particulate matter pollution. These pollutants contribute to increased rates of asthma, respiratory disease, and premature death. In fact, diesel pollution is the worst toxic air contaminant in California, responsible for 70% of the state's air pollution-related cancer risk.
·3,700 Californians to die prematurely-(more than 10 a day)
·2,830 Californians to be admitted to the hospital-(morethan 7 a day)
·360,000 Californians to miss work-(morethan 1,300 per work day), and
·1.1 million California children to miss school-(morethan 6,000 per school day).
Neighborhoods adjacent to our state's three large ports and connecting freight routes are hardest hit by air pollution. These are often low-income communities of color. For example, the community surrounding the Port of Oakland is 93% people of color and has a median income of just over $21,000. Trade through our ports is expected to triple in less than 20 years.
SB 974 is the best chance we have to raise the necessary funding to bring these numbers down and protect public health. After the measure goes back for a concurrence vote in the State Senate, it will then go to the Governor for a signature. SB 974 supporters have been working with the Governor's office since last August and are optimistic that he will sign the measure.
SB 974 now enjoys broad support from the mayors and ports of Los Angeles, Long Beach, and Oakland and a broad array of environmental, business, faith, labor and community groups, locally elected officials, chambers of commerce, and health and medical organizations.
TWO MORE CEQA WORKSHOPS OFFERED BY THE PCL FOUNDATION - SIGN UP TODAY!
1107 9th Street, Suite 360, Sacramento, CA 95814 • Phone (916) 444-8726 • Fax (916) 448-1789 •
Copyright • 2008 The Planning and Conservation League. All rights reserved. Privacy and Contribution Policies To report problems with or to ask questions about our website, please email pclmail@pcl.org.
