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Budget puts Democrats' dealing to test "I don't think there's any budget deal that six Republicans (in the Assembly) are going to vote for. It's going to have to be a budget from the middle of the political spectrum," said Richman, of Northridge, describing a spending plan that has the support of 20 to 25 Republicans and 30 to 35 Democrats. And although Canciamilla called the Republicans' non-negotiability on taxes "the height" of irresponsibility, he conceded that more program cuts are needed now. "Everyone wants to get to the end game first. We need to cut first. We need to get there incrementally," he said. taxes in exchange for business reforms? Sen. Gil Cedillo, D-Los Angeles, sees a possible compromise. As chairman of the Senate Revenue and Taxation Committee, his work with California business leaders - the bedrock of Republican support - has led him to believe that most are less concerned about taxes than they are about other issues: workers' compensation premium increases, frivolous lawsuits that target certain small businesses, overtime laws, and the ability of the Legislature to raise user fees by a majority vote. Cedillo said that some businesses have told him they'd be willing to give up the fight on certain taxes - such as Davis' proposed half-cent sales tax increase - in exchange for more discussion and reform on the other issues. Richard Costigan, vice president of government relations at that Chamber of Commerce, isn't wild about any tax increases but said that the approximately $640 million businesses would end up paying in the proposed sales tax increase would be far less harmful than workers' compensation premium increases that have already hit businesses. In some cases, those premiums have tripled. "This is a unique year, when the policies need to be taken with the budget," Costigan said. "Reforms to workers' compensation and (nuisance lawsuits) lead to jobs, which lead to revenues, which helps the budget. (We should) not narrowly focus about tax increases." The key to the Cedillo plan is whether legislators and the governor will be willing to link business reforms to the budget. It's not looking good so far. "The budget solution is complicated enough without adding on other issues that have been fought about and analyzed for many years," said Assemblyman Darrell Steinberg, D-Sacramento. Steinberg said more pressing is discussion about how to fix an ongoing structural deficit in the budget, in which the state continually spends more than it takes in. Republicans believe business reform should be part of the budget package, but "the tax increases are not trade bait for something else," said Assemblyman John Campbell, R-Irvine, vice chairman of the Assembly's budget committee. Cedillo puts the onus back on Republicans: "The question is whether Republicans reflect the business community or the ideological shock jocks on the radio," he said. --------------------------------------------------------------------------------
Direct questions about the budget to red-ink@ocregister.com or (949) 454-7394.
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