Thursday, February 19, 2009

We Have A Budget


Yes, the petulant children have decided to pretend they have a budget but in reality they have merely tossed up a hail mary pass not actually scored the winning touchdown.
SacBee has one of the first stories.
As part of Maldonado's agreement, lawmakers approved constitutional amendments establishing an open primary system and banning legislative pay increases during deficit years. But legislative leaders refused to grant him his proposal to eliminate legislative pay altogether when the budget is late.

Leaders also agreed to Maldonado's demand to eliminate the 12-cent additional gas tax, which was estimated to bring in $2.1 billion through June 2010. The money will be replaced with a 0.25 percent increase in the state income tax, federal stimulus dollars and more than $600 million in line-item vetoes.

If I am adding this up correctly that puts the sales tax in LA County at 10%. Way to go fearless leaders.

Update1:
AP has more:
The program cuts — some $15.1 billion, mostly to education — actually are higher than the proposed tax increases of $12 billion after Maldanado's last-minute changes. But many Republicans in the Legislature have signed a pledge against raising taxes and have decided to stick to it, even though they have not come up with a plan to close the entire deficit with cuts.
...
The tax hikes include an increase of 1 cent on the dollar in the state sales tax and a boost in vehicle licensing fees.
A 12-cent-a-gallon hike in the gasoline tax was removed along with a 5-percent income tax surcharge for taxpayers who owe money to the state at the end of 2009. Instead, lawmakers would impose a 0.25 percent income tax increase that would drop to 0.125 percent when California gets its expected share of money from the federal stimulus bill.

No mention yet when the voters get their say on the proposed increases in the sales tax.

Update2: The Central Valley Business Times has some of the sausage making details:
The logjam was breached with the votes of Sen. Abel Maldonado, R-Santa Maria, Sen. Roy Ashburn, R-Bakersfield and Sen. Dave. Cogdill, R-Modesto.
Mr. Cogdill had helped negotiate the complex deal and for his troubles was ousted by fellow Republicans as minority leader 24 hours earlier.
Mr. Maldonado was the swing vote in exchange for some of his pet ideas.
...
For his vote, Mr. Ashburn won approval for a state tax credit of up to $10,000 over three years for buyers of new homes.
To gain the support of Sen. Lou Correa, D-Santa Ana, who had threatened to be the lone Democrat holdout and thus kill the budget deal, Orange County will get $35 million more in tax revenue every year.

We are still screwed.

Update3:
The LATimes proves once again how marginalized the press has become with this gem:
In an unusually strong statement, Mary D.Nichols, the chairman of the state's Air Resources Board and an appointee of Gov. Arnold Schwarzenegger, said, "There are people who will die because of this delay. ... It is sad in an era where most people understand that strong environmental standards actually help California's economy as well as public health. ... Anti-tax zealots were able to force a weakening of our anti-diesel pollution standards as the price of a balanced budget."

I hold this as a possible ray of sunshine on a smoggy day. Perhaps the State will be forced to roll back its draconian global warming initatives to save its business sector.

30 comments:

Sweet Cashback said...

Why all this complaining? You have nice weather year round. That should compensate for paying through the nose, no?

First!

tj and the bear said...

LMAO on your choice of picture! Appropos given how seriously they take themselves.

Can't wait until the next deficit estimate comes in and blows this ridiculous budget away.

Rob Dawg said...

LMAO on your choice of picture! Appropos given how seriously they take themselves.

The "hail mary" pass comment was the giveaway. ;-)

Can't wait until the next deficit estimate comes in and blows this ridiculous budget away.

April 10th at latest. I bet closer to 3 weeks when the Stimpak number is released.

w said...

This is awesome. All job losses will be pushed into the private sector. That should be good for tax revenues.

The LA Times says there is 100 million in tax breaks for home builders. How can you have a tax break when you are unprofitable?

Rob Dawg said...

How can you have a tax break when you are unprofitable?

Clawbacks from previous years. Yeah, that'll leave a hole in the budget.

w said...

But how is that a tax break? That is a hand out.

I love politico-speak. We need more "revenue". We need "taxbreaks" for asshats for previous years while we raise the sales tax on the poor.

This state is headed for great discontent. Since I am paying to watch, I am gonna try and enjoy it.

Cobradriver said...

Rob,

Wasn't the sales tax about 10% after the riots. You know the whole "Help 'em rebuild" pile of bullshit. I bailed in 95, so it is kinda fuzzy. I sure don't miss the registration fees and insane income taxes though...

Chris

Jean ValJean said...

Speaking of Bailing...
White parents have bailed their kids out of Dallas ISD almost completely. I wonder where they went. Suburbs? Private?

Rob Dawg said...

CA Sales Tax History:
07/01/04Current6.25%*1.00%*7.25%
01/01/02
06/30/04
6.00%
1.25%
7.25%
01/01/01
12/31/01
5.75%
1.25%
7.00%
07/15/91
12/31/00
6.00%
1.25%
7.25%
01/01/91
07/14/91
4.75%
1.25%
6.00%
12/01/89
12/31/90
5.00%
1.25%
6.25%
04/01/74
11/30/89
4.75%
1.25%
6.00%
10/01/73
03/31/74
3.75%
1.25%
5.00%
07/01/73
9/30/1973
4.75%
1.25%
6.00%
07/01/72
06/30/73
3.75%
1.25%
5.00%
08/01/67
06/30/72
4.00%
1.00%
5.00%
01/01/62
07/31/67
3.00%
1.00%
4.00%
07/01/49
12/31/61
3.00%
3.00%
07/01/43
06/30/49
2.50%
2.50%
07/01/35
06/30/43
3.00%
3.00%
08/01/33**
06/30/35**
2.50%
2.50%

Misean said...

Taxes are good. They allow our chosen saviors to spend money to help us. Not like those evil business people who only want to exploit our hard work. I have 37 children to feed, and without a living wage of $145/hr I couldn't feed them.

Shame on all you evil bastards who won't feed my children. And save all the jobs of the most productive and selfless people who work tirelessly for the state.

X (someone had to type this as the poster is illiterate)

Cheers,

1.44MB said...

What? You think your readership is Neo and Morpeus types?

Colourful graphs a happy blog make.

Well that and hot ass.

Rob Dawg said...

We gonna need lotta truck loads of tushie to get through what's coming.

Upcoming graph pr0n; Transit Growth v. Recessions.

Lex said...

Upcoming graph pr0n; Transit Growth v. Recessions

Can't wait. BTW, I don't know if it's online, but the current issue of The Atlantic Monthly has the latest from BS artist Richard Florida, who predicts that NYC will be a big winner as a result of the crash.

Jean ValJean said...

You want graph pr0n? I've recently discovered the wonders of Excel 2007's charting capabilities and have been making full use of them:
Linky goes here

H Simpson said...

Tell the eco-nazis to take a chill pill.

Fuel usage is already down 3.9 percent. As the depression hits, it will get even worse. Nobody driving to a job equates to carbon credits out their butts.

No diesel from ships idling in LA as there is no goods coming in or out.

No trucks driving unneeded products to other parts of the country.

That smog ought to be gone any day now...

h.

Lou Minatti said...

The LA Times says there is 100 million in tax breaks for home builders. How can you have a tax break when you are unprofitable?

Think of it as an Earned Income Tax Credit. Same thing.

Lou Minatti said...

Jean, there are few white children in Dallas proper. Most of the white people counted in the survey are singles/DINKs living in apartments or condos or the few close-in affluent areas. It's not like there are an equal number of white kids but they're going to private schools... the kids just aren't in DISD. It's been like this for decades.

Akubi said...

Well, maybe some white women would mate per se if they could even trust their dogs and cats could be properly cared for if they died - let alone kids.
Fuck breeders!

Akubi said...

I couldn't give a rat's ass what color anyone happens to be, but illegals really piss me off in terms of Californicated's fiscal issues.

serinitis said...

the 100 million in tax breaks is the state will subsidize you up to 10 thousand if you buy a home that has never been lived in.

w said...

I am taking bets.

First the state hands out $10,000 to buy a new house.

Then when they freak in April as income tax revenue is smaller than their excellent forecast they will say we have to end prop 13.

serinitis said...

@w

Waiting till April?

I will take that bet

Property Flopper said...

Quick threadjack:

Both BofA and Citi are in the toliet right now, at least on stock price. Personally, I don't think either is going die... but I wanted to ask what y'all thought.

I'm thinking of picking up a small position in one or both of them. Not that I think the banking industry is going to bounce back tomorrow, but at these prices, they might make a nice 5 to 10 year investment.

Any thoughts?

Casey Serin said...

As neither of those banks was dumb enough to give me a mortgage, I'd say it's a sure thing! ;-)

[Actually, BofA bought out Countrywide, which *did* give me a mortgage, so take that into consideration...]

Peripheral Visionary said...

"Clawbacks from previous years. Yeah, that'll leave a hole in the budget."

And it will keep the homebuilders alive for another year. Because that's what the economy needs--for the homebuilders to stay in business! /sarcasm

PF: I wouldn't put any money into Citi, or any mega-bank for that matter, that you can't afford to lose. If you're going to put money into them, don't put any more than you would put on a casino table for a single roll of the dice.

Property Flopper said...

PV - Yeah, it's money I can afford to lose, just looking for something that's got a decent chance of a good return.

I figured Citi and BofA have the best chances of surviving the downturn and both are WAY off their highs. Both are undervalued if they survive... but that's the "if".

Just checking my thoughts vs. others - Rob has been pretty good at calling the Dow, others here have provided good advice in other areas...

Rob Dawg said...

New post but to answer here:

I do not see how the common shares are not wiped out in any scenario. If Timmy buys a few weeks on Monday there might be nimble trades but ultimately zero. The math just doesn't work out. They have to find billions and billions to settle notional CDS and the commons are first in line for that bullet and the administration is fast learning the taxpayer is not going step in front.

w said...

PF, I would buy WFC before Citi or BofA. Why don't you wait until BofA and Citi get nationalized and then buy WFC.

H Simpson said...

Newsweek on California

http://www.newsweek.com/id/185791/page/1

Property Flopper said...

Thanks all - ya talked some sense into me.