Budget Deal at a Glance

Thursday, Jun 16, 2011  |  Updated 6:51 AM PDT
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California Lawmakers Scuffle During Budget Debate

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California Lawmakers Scuffle During Budget Debate

An angry face-to-face exchange and apparent shove between Assemblyman Warren Furutani and Assemblyman Don Wagner brought the California Assembly to a standstill Wednesday.
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The budget bills California lawmakers approved Wednesday include a combination of tax and fee increases, spending cuts and revenue assumptions.

They include:

  • $3 billion in education cuts
  • More than $500 million in cuts to state programs.
  • $12 annual fee on car registrations to pay for Department of Motor Vehicle services. The department's costs previously were covered by a voter-approved increase in the vehicle license fee increase that expires July 1.
  • $150 annual fee on homes in rural areas that depend on the California Department of Forestry and Fire Protection for wildfire protection.
  • A quarter-cent local sales tax. A 1 percent increase in the state sales tax is scheduled to expire June 30, so consumers would see a net reduction of three-quarters of a cent in the sales tax they pay on goods.
  • Requiring online retailers such as Amazon.com to collect California sales taxes, a change projected to net $200 million annually.

Additional spending cuts:

  • University of California, $150 million.
  • California State University, $150 million.
  • California courts, $150 million.
  • County offices of education, $50 million.

Revenue assumptions:

  • $1.2 billion from selling and leasing back 11 state properties, under more favorable terms than a plan Brown previously rejected. The state would be allowed to repurchase the properties when the lease deal expires.
  • $1.7 billion by restructuring local redevelopment agencies.
  • $816 million increase in additional tax revenue projected from a recovering economy.
  • $1 billion from First 5 commissions for early childhood development, despite an ongoing legal challenge.
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  • $3.4 billion in delayed payments to schools, community colleges and the University of California.
     

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