Republicans Propose State Spending Cap
Republican State Lawmakers have come up with a plan of their own that they say will stabilize the state’s infamous “boom and bust” budget cycles.
Wednesday, June 18, 2008
G-O-P lawmakers are calling for a constitutional amendment. It would cap state spending increases based on inflation plus population growth. Money left over would go to pay off debt and into a reserve fund for a rainy day. If the reserve filled up and debt was paid, the surplus would go for temporary sales tax reductions. Senate Republican Leader Dave Cogdill:
“So that when we have good times, we’re acting in a responsible way, putting some of that money back in that rainy day fund, so that when the economy turns down, and we need to have those revenues available so that we don’t have to face the prospect of either increasing revenue or slashing services to the bone.”
Democratic Assembly Speaker Karen Bass opposes the measure. She says there are already enough budget formulas in place. She says it’s time instead to focus on whittling down the 15-billion dollar budget deficit. The Republicans’ plan is similar to one proposed by Governor Schwarzenegger.