Senate Democrats Offer Tax Plan Designed To Avert Safety Net Cuts
On Monday, state Senate Democrats proposed a plan to raise $4.9 billion in additional taxes and other revenue to prevent severe cuts to safety net programs included in Gov. Arnold Schwarzenegger's (R) latest budget proposal, the Sacramento Bee reports (Yamamura, Sacramento Bee, 5/25).
The governor has proposed cutting:
- $750 million from the state's In-Home Supportive Services program;
- $532 million from Medi-Cal, California's Medicaid program; and
- $15 million from Healthy Families, California's Children's Health Insurance Program.
Schwarzenegger's budget plan also calls for the elimination of CalWorks, California's welfare program (California Healthline, 5/17).
Democrats' Tax Plan
The Senate Democrats' proposal aims to raise:
- $2.05 billion by suspending a corporate tax break;
- $1.2 billion by raising vehicle license fees;
- $1 billion by extending a 0.25% income tax surcharge;
- $430 million by extending a reduction in the state's dependent income tax credit; and
- $210 million by increasing the state's alcohol tax (Yamamura, "Capitol Alert," Sacramento Bee, 5/24).
On Tuesday, Assembly Democrats are expected to release their own plan, which likely will include additional revenue raising proposals.
Schwarzenegger and Republican lawmakers have said they will notÂ back any new or increased taxes. Tax changes require a two-thirds vote from the Legislature, meaning that some Republican support would be necessary to pass the proposals (Buchanan, San Francisco Chronicle, 5/25).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.