The Democratic budget proposal includes cuts to schools and health and welfare programs, along with tax increases on oil and tobacco. Republicans and the Governor oppose the taxes. And that’s clearly frustrating to Democratic Senate Leader Darrel Steinberg:
“It’s sort of to me the definition of insanity that we would kick 950-thousand kids off the rolls before we would consider raising a tax on tobacco.”
But Republicans and Governor Schwarzenegger have another problem with the Democrats’ plan, too. It doesn’t solve the entire 24 billion dollar deficit problem. It gets close – but not close enough for Assembly GOP Leader Sam Blakeslee
“The definition of insanity involves making the cuts without solving the problem. If you only make partial cuts and the state goes into bankruptcy, you will have engaged in a crazy process that hurts everybody and helps no one.”
Governor Schwarzenegger has said he won’t approve any budget solution less than 24 billion dollars. Bipartisan support is required for any budget plan to take effect immediately. The state is expected to run out of cash late next month.