Governor Says Cut School Spending, Increase Taxes

According to an article by Rebecca Kimitch in the Pasadena Star News, Governor Schwarzenegger has called for slashing the K-12 budget by $2.5 billion, and increasing sales tax by 1.5% for three years, extending the tax to areas that are not currently taxed, such as amusement park tickets, greens fees and services such as auto repair. The education cuts would not be made by laying off teachers, because it is mid-year, and teacher contracts must be honored. So the cuts will be made in other areas.

Is education really where we want to make cuts?

While nobody wants to see taxes increased, the state has an $11.2 billion deficit that some say could double by 2010. Where is the state going to get the money? The Governor has called a special session of the legislature, reportedly to try and get some of the termed out politicos to help pass an unpopular tax cut. Assemblyman Anthony Adams and State Senator Bob Margett are both quoted in the article as being adamantly opposed to increasing the sales tax. Sen. Margett is one of the termed out politicians that the Governor is hoping will change his stance, but according to the article, the Governor has not contacted him.

If Measure R passes, sales tax in L.A. County will be 10-1/4% if the proposed increase is approved. One good thing for local retailers, the tax won't take effect until after the holidays, starting on Jan. 1st.