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Tripling of Car Fee Is Expected He said the state is running entirely on borrowed money as legislators struggle to reach agreement on a spending plan by the beginning of the new fiscal year, July 1. Lawmakers appear nowhere close to a deal as the state hovers dangerously close to being assigned a "junk bond" credit rating that would raise the cost of future borrowing substantially. California already has the lowest credit rating of any state. "The state has never been in this position before," Peace said. "We are managing this state the same way you would manage a company that is on the brink." The latest push by the GOP to stop the fee hike is a double-edged sword for the party. If a court stops the hike, it would remove a major revenue source and a government shutdown would become more probable. Assembly Budget Committee Vice Chairman John Campbell (R-Irvine) made no apologies. "We don't believe it will be us that shuts down the state government," he said. "If [Democrats'] insistence upon having tax and spending increases in this budget drives the state to the point of some shutdown or whatever, that will be a decision they choose to make." Los Angeles Police Chief William J. Bratton, who was in the Capitol when Campbell briefed reporters, said that not pulling the car-tax trigger "is a recipe for chaos" that could stop the flow of sorely needed money. "It's hard for me to figure out what is going on in this building here," Bratton said. "The reality of the world out there is that this stuff has the potential to cause real harm." Bratton was in Sacramento with Los Angeles Mayor James K. Hahn and other California mayors to urge lawmakers not to seize revenue from cities in closing a $38-billion shortfall. Though the mayors had initially called for no state cuts, Hahn said, they have since agreed to accept a modest, one-year reduction. "We're saying we can work with you to make a contribution this year, which is different than the position we started out in, which was, 'Leave us completely alone. Don't touch us at all,' " Hahn said. Senate Republican Leader Jim Brulte gave the mayors some good news. "I would be very surprised if a multiyear hit passes the Legislature," Brulte said. As cities sought to keep tax revenues coming their way, business and taxpayer groups announced several ballot proposals they are pushing to make it more difficult for lawmakers to raise taxes. The measures would remove a section of the law that allows Democrats to raise fees with a simple majority vote. Another provision would increase the number of votes needed to raise taxes to two-thirds plus one in each legislative house. The campaign was launched in response to a union drive to put a measure on the ballot that would lower the threshold for raising taxes from a two-thirds majority to 55% of the Legislature. If the union measure is successful, Democrats would be able to enact a tax hike without any Republican votes. -------------------------------------------------------------------------------- Times staff writer Peter Nicholas contributed to this report. * (BEGIN TEXT OF INFOBOX) Q&A: The vehicle license fee As early as today, Gov. Gray Davis will issue an administrative order to increase the state's so-called car tax, raising $4 billion annually to help repair the state's $38-billion budget shortfall. Q: Who must pay? A: Automobile, motorcycle, trailer and truck owners who register their vehicles in California. The fee will be added to the Department of Motor Vehicles' annual registration bill, which also includes items such as registration, air quality and commercial vehicle weight fees.
Q: When will the bill arrive?
A: An owner receives the DMV bill in
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