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| Office of the Chancellor / Public Affairs |
Thursday, June 12, 2003
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Oakland Tribune 6-12-03 Dutra pitches alternative plan on state budget |
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| In a move that could deepen the state budget deadlock, an East Bay lawmaker disclosed Wednesday that he and some fellow Democrats will not vote for current fiscal plans that largely push California's deficit woes into the future. Instead, Assemblyman John Dutra, a moderate Fremont Democrat who serves on the budget committee, said he has forged an alternative plan that could serve as the basis for a breakthrough in the political standoff over spending cuts versus tax hikes. Dutra's proposal would still lean heavily on borrowing but would also deepen spending cuts and attempt to coax Republicans into backing tax hikes in exchange for workers' compensation reform and other legislation sought by the GOP. Amid Republican opposition to tax hikes and Democratic resistance to spending cuts, Democratic Gov. Gray Davis' revised budget proposal and the Legislature's versions of his plan threaten to push too much of the state's fiscal problems into future years, Dutra said. The imbalance between spending and revenues could lead to "economic disaster" for state government within two years, he said in an interview. "There's a group of us that are not going to vote for the budget unless it has a structural fix, period," said Dutra. "It would be irresponsible if we did that." The Democratic Assembly members expressing that opinion range from liberals to moderates, he said. The budget for the fiscal year starting July 1 must be approved by two-thirds of the Legislature, requiring not only the support of majority Democrats but support from a handful of Republicans. Even in rosy economic years, spending plans are rarely passed on time. This year, the state -- with an annual budget of about $100 billion -- faces a $38 billion deficit. Dutra, relying on information from an array of fiscal advisers, forged a plan that would make $1.5 billion more in spending cuts than envisioned by Davis. The proposal would rely less on fund shifts, transfers, deferrals and delays, and more on "true cuts, with multi-year impacts," while sparing education, social programs and public safety, Dutra said. But the lawmaker declined to detail the proposed spending cuts, saying he was still conferring with colleagues. Contact Sacramento Bureau Chief Steve Geissinger at href="mailto:sgeissinger@angnewspapers.com ">sgeissinger@angnewspapers.com . Dutra would bolster Davis' plan to increase taxes on the income of California's wealthiest residents. While Davis is seeking a new 10.3 percent tax bracket, Dutra's proposal would increase the upper bracket from 9 percent to 10 percent for a single filer and from 10 percent to 11 percent for a married filer. The change would bring in an additional $1.8 billion a year in revenue. Ironically, a Public Policy Institute of California poll released Wednesday showed that the state's residents view income tax hikes as the least popular of all tax increases. In a bid to gain Republican support for the tax hikes, Dutra suggests a deal ensuring reform of the crippled workers' compensation system and other legislation sought by the GOP. The tradeoff is extremely reasonable, Dutra said. The lawmaker said he has received positive reactions from the business sector and would expect to convince labor interests that the deal was good for them, especially in light of expected overall benefits to the ailing economy. But Dutra concedes he is uncertain how Davis and other lawmakers -- even the Democratic leadership -- will ultimately view his plan. Davis administration officials and legislative leaders contacted Wednesday had no immediate reaction. Last week, Senate GOP leader Jim Brulte of Rancho Cucamonga threatened to oppose the re-election of any Republican who voted for a budget that included higher taxes. Even so, Dutra is optimistic. If all of this (package) was clearly known to the business community, the industrial community and labor, I think they would start talking to our Republican friends and say, Hey, wait a minute. That is something we ought to seriously consider.' Furthermore, Dutra said, if this template were made known to the general
public and what it takes to get to a budget solution, they are going to
wonder why in the world we can't get there. |
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