GOVERNOR’S COMPROMISE BUDGET COMPENDIUM
8/20/08
California Retailers Association Press Release:
California Retailers Association Supports Governor Schwarzenegger’s Budget Compromise
California State Association Of Counties Press Release:
California Counties Agree with Governor: Now’s Not The Time To Borrow
8/21/08
San Diego North Chamber Of Commerce Press Release:
San Diego North Chamber Supports Governor’s Budget Compromise
Central City Association Of Los Angeles Press Release:
Central City Association Of Los Angeles Applauds Governor Schwarzenegger’s Efforts To Resolve State Budget Stalemate
Ventura County Economic Development Association Press Release:
VCEDA’s Statement On Governor Schwarzenegger’s Budget Proposal
Los Angeles Area Chamber Of Commerce Press Release:
L.A. Area Chamber Statement On Governor Schwarzenegger’s Budget Proposal
United Chambers Of Commerce San Fernando Valley And Region Press Release:
Media Advisory
City Of Santa Clarita Press Release:
Letter To Governor Schwarzenegger
Regional Legislative Alliance Of Ventura And Santa Barbara Counties Press Release:
Budget Must Be Passed Now – 52 Days Is Unacceptable
City Of Downey Mayor Pro Tem Mario A. Guerra Press Release:
Statement On Budget
Independent Cities Association Press Release:
Statement On Budget
Greater Bakersfield Chamber Of Commerce Press Release:
Statement From The Greater Bakersfield Chamber Of Commerce On Governor Schwarzenegger’s Budget Proposal
8/22/08
Valley Industry And Commerce Association Press Release:
VICA Applauds Schwarzenegger's Efforts For Budget Compromise
San Francisco Chamber Of Commerce Press Release:
SF Chamber Supports Governor’s Proposed Temporary Sales Tax Increase
Small Business California Press Release:
Statement Of Support
California Hospitals Press Release:
Media Statement
California Retailers Association Press Release: California Retailers Association Supports Governor Schwarzenegger’s Budget Compromise
August 20, 2008 (Sacramento) – The California Retailers Association today announced its support for Governor Schwarzenegger’s budget compromise, including the net sales tax reduction.
“The Governor’s budget compromise provides the framework for real, long-term budget reform that will balance the state’s revenues with its expenditures,” said Bill Dombrowski, President and CEO of CRA, “We believe that the temporary one cent sales tax increase provides a broad-based revenue stream that will, when followed by the Governor’s permanent 1¼ cent sales tax reduction, be a net tax cut that will be good for California’s economy. California needs real budget reform that provides stability and growth. The Governor’s proposal provides for a rainy day fund, short-term measures that will stimulate the economy, and long-term sales tax relief that will stimulate consumer spending.”
The California Retailers Association is a trade association representing major California department stores, mass merchandisers, supermarkets, chain drug and convenience stores, as well as specialty retailers such as auto, book and home improvement stores. Our members have more than 9,000 stores in California and account for more than $100 billion in sales annually.
Contact:
Bill Dombrowski
cra@calretailers.com
(916) 443-1975
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California State Association Of Counties Press Release: California Counties Agree with Governor: Now’s Not The Time To Borrow
The California State Association of Counties has released the following statement in response to the Governor’s Press Conference on the State Budget:
The California State Association of Counties (CSAC) adamantly agrees with the Governor’s position that now is not the time to borrow additional monies in order to balance the state budget. Borrowing from local governments and transportation funds will not solve the budget crisis; it will only extend the deficit into future years and place additional hardship on our local governments.
Local governments are facing their own financial difficulties due to the economic downturn and a drop in sales and property tax revenues. Most local governments have already adopted budgets and made tough decisions to come up with balanced plans. Borrowing local revenues would only put holes in these budgets by requiring even deeper cuts at the local level.
We applaud the Governor for standing by his pledge to local government. California Counties stand ready to work with the Governor and Legislature on crafting long-term reform to ensure future discussions regarding borrowing of local government funds will not be needed.
Contact:
Paul McIntosh,
Executive Director
(916) 327-7500 Ext 506
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San Diego North Chamber Of Commerce Press Release: San Diego North Chamber Supports Governor’s Budget Compromise
Proposal is Important First Step in Fixing the State’s Budget System
(August 21, 2008 San Diego, CA) The San Diego North Chamber of Commerce (SDNCC) has announced today that the business organization is in full support of the State Budget Compromise proposed yesterday by Governor Arnold Schwarzenegger.
“The Governor’s proposal provides the leadership-based compromise that is necessary to move our State out of the current budget stalemate and into a period of reconstruction and growth,” stated SDNCC President and CEO Michael Robinson. “It protects vital education funding, creates a strong rainy day fund strategy, and creates an architecture to move California forward with responsible leadership.”
The Chamber recognizes the need for new revenue and echoes the position of the California Retailers Association in supporting the temporary increase and permanent reduction to the state sales tax. The Governor’s plan calls for a temporary 1-cent increase in sales tax for three years, with important exemptions on diesel, gasoline and jet fuel, followed by a permanent .25% reduction beginning in year four.
The compromise also includes important flexibility in overtime laws allowing employers and employees to agree mutually on acceptable flexible work schedules.
“The Stimulus provisions are a real win for business,” continued Robinson. “Allowing the employer and employee to agree on flexible work schedules without the State looming over the shoulder of business, creates a much more business-conducive environment within our state. This will have long lasting impact as the state moves seeks to recruit and retain quality businesses within our borders."
The SDNCC had previously applauded the Governor’s move to reduce state wages to the federal minimum wage and refused to sign any bill that crossed his desk before a budget compromise had been reached. The business organization has a wide variety of members representing interests that include both large and smaller businesses within the northern limits of the City of San Diego and into the North San Diego County region.
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Central City Association Of Los Angeles Press Release: Central City Association Of Los Angeles Applauds Governor Schwarzenegger’s Efforts To Resolve State Budget Stalemate
Los Angeles (Aug. 21, 2008) – The Central City Association of Los Angeles today issued the following statement:
“The Central City Association of Los Angeles applauds Governor Arnold Schwarzenegger’s efforts to resolve the state budget stalemate with a new, balanced proposal.
While we are still studying the specifics, already we see key elements of the plan that we can support, including a strong “Rainy Day Fund” and an economic stimulus package that would include targeted tax credits to retain film production and other industry jobs, and to encourage economic expansion in California.
As advocates for the business community, CCA knows the importance of these programs -- especially in the current economic climate. We thank the Governor for his efforts and urge the State legislature to work with him to reach a speedy resolution.”
Contact:
Christie Ly
(310) 309-6611
Cell: (310) 954-6278
christie.ly@bm.com
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Ventura County Economic Development Association Press Release: VCEDA’s Statement On Governor Schwarzenegger’s Budget Proposal
VCEDA applauds the Governor for his continued efforts to bring an end to the budget stalemate by releasing his compromise proposal. The gridlock in Sacramento is harming the State’s economy and
reputation. While the VCEDA Board has not thoroughly reviewed the entire proposal, several key elements of the economic stimulus package are worthy of favorable consideration. Expediting the allocation and disbursement of existing infrastructure bond funds would create jobs and stimulate the economy. With rising gasoline prices and other economic factors, allowing employers and employees to mutually agree on flexible work hours is a step in the right direction. Public‐private partnerships with design‐build authority will stimulate private sector engagement leading to accelerated infrastructure project.
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Los Angeles Area Chamber Of Commerce Press Release: L.A. Area Chamber Statement On Governor Schwarzenegger’s Budget Proposal
The Los Angeles Area Chamber of Commerce supports portions of Governor Arnold Schwarzenegger’s compromise budget proposal offered yesterday to the California State Legislature. The L.A. Area Chamber applauds Governor Schwarzenegger for continuing to make the budget a priority and push for a resolution.
The L.A. Area Chamber supports the Governor’s economic stimulus package to create jobs in a slowing economy, enable flexible work schedules to reduce employee transportation costs, and facilitate public-private partnerships to accelerate needed infrastructure projects. The Chamber continues to encourage the Legislature to create an effective rainy day fund, and supports the Governor’s budget reforms to increase and manage California’s Budget Stabilization Account (BSA).
“California is running out of money,” said Gary Toebben, President & CEO, Los Angeles Area Chamber of Commerce. “The L.A. Area Chamber applauds Governor Schwarzenegger for continuing to place options on the table and we urge members of the Legislature to identify a bipartisan compromise before the state coffers run dry.”
The Los Angeles Area Chamber of Commerce Board of Directors has not taken a formal position on the Governor’s tax package. The L.A. Area Chamber continues to call for bipartisan collaboration and long-term fiscal reforms outlined in the Chamber’s guiding principles for California State Budget reform. The guiding principles for budget reform can found at:
http://www.lachamber.com/clientuploa...Principles_FIN
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United Chambers Of Commerce San Fernando Valley And Region Press Release: Media Advisory
“United Chambers of Commerce is on record supporting the Governor's Budget Stabilization Act proposal as previously put forward. United Chambers has adopted no formal position regarding the new portion of the Governor's proposal which recommends a temporary sales-tax increase; and in general the business community remains skeptical of tax increases as a vehicle to solve the State's overspending problem. However, we do applaud the Governor on bringing forth new budget compromise proposals as part of a dialogue finally to resolve the budget impasse. While there are items in this compromise that none of us might like, it is imperative that our legislators seriously sit down and solve this crisis as real people and businesses are the ones who are suffering,” stated Stephen T. Holzer, Chairman, United Chambers of Commerce ~ San Fernando Valley & Region .
United Chambers of Commerce ~ SFV & Region, is a coalition of 33 Business Organizations including 22 Chambers of Commerce who together represent over 21,000 businesses and provide over 387,000 jobs.
Contact:
Debi Schultze
President & CEO
818.981.4491
DebiSchultze@UnitedChambers.org
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City Of Santa Clarita Press Release: Letter To Governor Schwarzenegger
August 21, 2008
Governor Arnold Schwarzenegger
Office of the Governor
State Capitol Bldg
Sacramento, CA 95814-4905
Dear Governor Schwarzenegger,
The Santa Clarita City Council has greatly appreciated the courageous stance that you have taken thus far to oppose additional borrowing and make the tough choices necessary to correct the state’s structural deficit. Borrowing of local revenues does nothing to solve the state’s structural budget issues and, once again, becomes a band-aid resolution as has been used without success in previous years.
Please communicate on behalf of the Santa Clarita City Council, that they appreciate your resolve to find a lasting solution to the state’s structural budget deficit and that they oppose any efforts to borrow local government revenues. Thank you for your consideration of my request.
Sincerely,
Bob Kellar
Mayor
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Regional Legislative Alliance Of Ventura And Santa Barbara Counties Press Release: Budget Must Be Passed Now – 52 Days Is Unacceptable
Santa Barbara, CA – (August 21, 2008) Yesterday, the Governor released a budget proposal that is the only proposal we have seen details on to date. Although there are areas that will be painful to all aspects of business and individuals in the State, it is a proposal with merit and one that should begin true negotiations to finalize a long-overdue budget and reform package.
The Regional Legislative Alliance of Ventura and Santa Barbara Counties (RLA) is a cooperative council of 12 leading chambers of commerce and associations in the Santa Barbara and Ventura county region. We represent 300,000 jobs and we are a strong, unified voice for the business community working to improve and enhance the business climate.
One of the key elements of our issues policy, which guides our decisions on legislative and policy matters is State Governance, specifically the budget process. We support reform of the California budgeting process that encourages long-term fiscal responsibility and stability. That reform needs to happen this month, and it should be true, well-thought out reform to curb spending and evaluate spending programs currently in place. The last 52 days have proven, yet again, that there is no place for partisan politics.
The lack of action by our elected leaders in the Senate and the Assembly is totally and entirely disappointing to the business community, and the consequences to vendors, state employees and state service agencies is causing real pain to the businesses and people of California.
Finally, the lack of productive work and resolution of the budget is a reminder that there needs to be budget reform AND election reform. Also stated in our issues policy is the RLA’s support for immediate efforts to reform the State and Federal redistricting process so that districts become and remain competitive. For this reason the RLA endorses Proposition 11 which if passed in November will bring redistricting to California.
Contacts:
Lisa Rivas
Executive Director
(805) 637-6816
Nancy Lindholm
Chairman of the Board
(805) 983-6118 ext. 4
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City Of Downey Mayor Pro Tem Mario A. Guerra Press Release: Statement On Budget
Mayor Pro Tem Mario A. Guerra issues the following statement:
“It’s time to sign a budget. Governor Schwarzenegger’s Compromise Budget has enough in it for both sides to agree on. It offers solutions and protects local government. Given the choice between borrowing from local governments and temporarily increasing the sales tax, it’s clear that the temporary sales tax – which is ultimately a tax decrease – is the fiscally responsible choice.”
This proposal includes meaningful budget reform, $2 billion in additional cuts, PROTECTS Prop 1A and Prop 42, and funds Prop 98 $1.2 billion above current year levels. It also includes a temporary (3 year) 1-cent increase in the state sales tax, followed by a permanent 1/4 cent decrease below current levels.
It also includes a temporary shift in redevelopment funds - I know this has been a big concern, so here's additional information: this 5 percent shift is for 3 years - 2008-09 through 2010-11. After that, the 5 percent stays locally and doesn't need to be shifted to ERAF. The proposal was structured to provide 5 percent or $225 million, whichever was greater. The $228 million assumed for 08-09 is what the 5 percent is anticipated to yield in the budget year.
The Governor is still opposed to increasing taxes but believes that it is fiscally responsible --- as opposed to more borrowing or raiding local government. I agree with this position and urge everyone to let our legislators know that it is time to make the tough, but right, decision for our citizens.
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Independent Cities Association Press Release: Statement On Budget
The Independent Cities Association would like to thank the Governor for his leadership and continued support of local government. ICA thanks him for adhering to the letter and spirit of Proposition 1A and Proposition 42 which passed with overwhelming support by the people of the State of California.
“The Independent Cities Association supports the Governor in his efforts to deliver a budget. The Governor’s proposal protects local funds and preserves local control. It’s time to sign a budget NOW,” said Kevin Stapleton, President-Elect of the Independent Cities Association and Mayor of the City of Covina.
ICA is comprised of 52 cities with over 7 million residents. ICA has been and continues to be a strong voice for local control for all of its members.
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Greater Bakersfield Chamber Of Commerce Press Release: Statement From The Greater Bakersfield Chamber Of Commerce On Governor Schwarzenegger’s Budget Proposal
The Greater Bakersfield Chamber of Commerce commends Governor Arnold Schwarzenegger for presenting a compromise budget proposal yesterday. The Chamber appreciates the Governor’s proactive stance towards resolving the debate over the state’s annual fiscal plan, which is now 52 days overdue. The Chamber continues to urge lawmakers to pass a responsible budget.
The Greater Bakersfield Chamber of Commerce supports the Governor’s efforts to protect local government and transportation funds, enable flexible work schedules for small business owners and employees, and facilitate the development of much-needed infrastructure projects. The Chamber continues to encourage the Legislature to bring spending in line with revenues, and we are heartened by the Governor’s commitment to further spending reductions.
The Greater Bakersfield Chamber of Commerce’s Board of Directors has not taken a formal position on the Governor’s sales tax package. However, the Chamber continues to call for bipartisan partnership and budget reforms that not only enable lawmakers to meet our current fiscal challenges but also allow legislators to pass accountable and timely budgets in future years.
Contact:
Nick Ortiz
327-4421
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Valley Industry And Commerce Association Press Release: VICA Applauds Schwarzenegger's Efforts For Budget Compromise
SHERMAN OAKS, Calif.—The Valley Industry and Commerce Association (VICA) has announced its support for a number of the proposals included in Gov. Arnold Schwarzenegger’s budget compromise.
The organization applauds the Governor’s persistent efforts to stabilize California’s fiscal condition by increasing and controlling the Budget Stabilization Account to provide an effective rainy day fund, reducing spending where feasible and providing revenue enhancements such as effective tax amnesty programs and prudent asset securitization.
VICA is very pleased to support the economic stimulus proposals that will facilitate the creation and retention of jobs, provide statutory authority to enable public-private partnerships with design-build authority to accelerate the building and repair of much needed infrastructure, allow flexible work schedules to reduce employee transportation time and costs, and provide targeted tax credits to return lost film production to California.
“California is in a crisis situation,” said VICA Chairman Greg Lippe. “We must encourage our Legislator’s to reach accord quickly and pass a responsible budget before California’s operations come to a grinding halt.”
Contact:
Angela Fentiman
Director of External Affairs
(818) 817-0545
angela@vica.com
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San Francisco Chamber Of Commerce Press Release: SF Chamber Supports Governor’s Proposed Temporary Sales Tax Increase
As One Part of Overall Budget Solution
San Francisco, Aug. 22, 2008 – California’s budget stalemate must be resolved through bi-partisan negotiations and legislative compromise. Like it or not, the two-thirds vote requirement in the State Constitution obligates members of both political parties to seek the middle ground.
“The San Francisco business community recognizes that a budget crisis of the magnitude confronting California cannot be solved by cuts alone. Governor Schwarzenegger’s proposed temporary increase in the sales tax can be one part of an overall budget solution which our Chamber can support,” says Steve Falk, Chamber president & CEO, “But that solution must also contain lasting budget reform, changes to employer-employee flexible work day rules, encouragement of the state’s use of public-private partnerships and a guaranteed roll-back of any temporary sales tax increase, to strengthen California’s economy, grow revenue and control state spending.”
Contact:
Carol Piasente
Vice President/Communications & Events
415-352-8839
Fax 415-392-0485
cpiasente@sfchamber.com
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Small Business California Press Release: Statement Of Support
Small Business California, San Francisco (August 20, 2008) - Small Business California, an association of 2,700 small companies, who represent many of the 3.2 million small businesses in this state, supports many of the provisions in Governor Schwarzenegger's Budget Compromise and hopes this will help start a dialog with the legislature to find a resolution to California's state budget crisis.
While small businesses in California don’t like tax increases, Small Business California believes that the $15.2 billion deficit cannot be closed by cuts alone. Small Business California supports the one-cent sales tax increase for three years and at the end of the three years, the tax will be reduced by 1 ¼ percent.
Small Business California supports the elimination of the 8-hour overtime giving much needed flexibility to employers and employees. A flexible workweek will benefit California’s employers and employees giving more time with family, less traffic and a reduction in carbon emissions resulting in a healthier California.
Small Business California also supports the suspension of the Net Operating Loss (NOL) for two years with an exemption of the Net Operating Loss (NOL) carryover tax for small businesses with gross revenues under $5 million.
This carve-out for small businesses would make the one cent sales tax “bitter pill” an easier dose to swallow, given the state of our state's economy and this impact on small and start-up companies.
Small Business California believes the temporary one-cent sales tax increase will provide the immediate and broad-based revenue stream necessary to close our state's $15.2 billion budget gap.
Many small businesses in California are being hurt by the budget stalemate and are not getting paid for goods and services they have provided the state.
We urge that a resolution be found quickly.
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California Hospitals Press Release: Media Statement
California Hospitals Back Elements of Governor’s Budget Compromise to Resolve Budget Stalemate Temporary Tax Increase, Budget Reserve, Flexible Work Schedules Make Sense
C. Duane Dauner
President
California Hospital Association
California hospitals have long supported a balanced approach to resolving California’s cyclic budget crises. This year, it is not feasible to cut our way out of the $15.2 billion deficit facing the state.
Governor Schwarzenegger has put forth a framework for a budget compromise that includes a temporary, three-year increase in the state’s sales tax combined with an economic stimulus package and a mandatory “rainy day” reserve fund. The proposal also includes improvements in the state’s overtime laws which will allow hospitals and other employers to work more collaboratively with their employees in establishing flexible work schedules. The California Hospital Association (CHA) believes these elements of the Governor’s budget compromise are important components of a solution.
Essential health care services are at a critical juncture in California. If the budget stalemate is not resolved, the health care system will melt down. Hospitals across the state have not been paid for services provided to Medi-Cal patients since July 24, when an interim fund ran out of money. Currently, the state owes hospitals more than $750 million in overdue Medi-Cal payments. CHA urges the quick adoption of a budget that restores Medi-Cal funding and resumes timely payments to hospitals and other health care providers. Otherwise, access to care for millions of Californians is at risk.
Contact:
Jan Emerson
VP, External Affairs
California Hospital Association
(916) 552-7516
(916) 804-0663 – Cell
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