Wednesday, June 1, 2011

Letter from Assemblymember Kristin Olsen

The state budget has been the dominating issue at the Capitol in May, with the biggest news being that the state has collected $6.6 billion more in tax revenues than the Governor originally anticipated.  This has significantly lowered California's deficit to $9.6 billion.
Republicans have released a roadmap to close the deficit without raising taxes. Our proposal ensures that education and public safety are prioritized and fully funded, and makes cuts to other areas of government to balance the budget.  We are also calling for structural reforms to improve our long-term fiscal health - public pension reform, regulatory relief that leads to job creation, education reform, and a spending cap.



Governor Brown released his May Revision this month as well. Despite the reduced deficit, his proposal still relies on increasing the income tax, sales tax and vehicle license fee. Democrats and their allies are pressuring Republicans to vote for the tax increases even though it is clear that they are not necessary if we prioritize the money we have.
One labor union, SEIU, is even sending mail pieces attacking Republicans and advocating for the higher taxes that would merely grow government spending by 31% over the next five years.
The deadline to pass a budget is June 15th and there is much work left to be done. I will be fighting for a budget solution that protects taxpayers and small businesses by prioritizing public safety and education without raising taxes.

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