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OPINION: Democrats' shift could crack budget impasse(Sacramento Bee, The (CA) (KRT) Via Acquire Media NewsEdge) Aug. 30--The near-record political stalemate over the deficit-ridden state budget may -- repeat, may -- have moved a notch closer to resolution Friday even though the Senate rejected a new Democratic version. The new version is based on Republican Gov. Arnold Schwarzenegger's latest proposal and hinges on a 1-cent increase in the state sales tax for three years. But Republicans continued to oppose it unanimously, and any budget needs votes from at least two GOP senators. Despite being rejected, it represents major movement by Democrats because it embraces -- at least momentarily -- Schwarzenegger's "reforms" to prevent future budget problems, including his authority to cut spending in midyear that Democrats dislike. The chief difference between the Democratic senators and Schwarzenegger now appears to be the form of the sales tax boost. The governor wants to not only end it after three years but then reduce the sales tax slightly below the current level so that it constitutes a long-term tax cut. Democrats would merely end the 1-cent increase after three years. Pointedly, when asked about the Democratic move during an appearance in San Diego, Schwarzenegger described it as "very courageous" and urged Republicans to vote for it, although his aides said later he was not endorsing it as a final budget. Republican senators, however, denounced the budget. Tom McClintock of Thousand Oaks quoted Democratic presidential nominee Barack Obama's promise that "I will cut taxes ... for 95 percent of all working families, because, in an economy like this, the last thing we should do is raise taxes on the middle class." But another Republican, Bakersfield's Roy Ashburn, hinted anew that he might vote for a sales tax-based budget if, as Schwarzenegger's can, it could be viewed as a long-term tax cut. It's widely believed that Ashburn and Santa Maria Republican Abel Maldonado could be persuaded to vote for such a budget if Democrats are willing. All in all, therefore, the Senate may be edging toward some budget deal that could then be dumped on the Assembly, where Republican opposition to any kind of new taxes appears stronger. Democratic senators have been openly worried that a "borrowing budget" -- one that relies on shifting funds from local governments and transportation funds rather than taxes -- might emerge from the Assembly and put them on the spot. Schwarzenegger uttered his praise of the Senate Democrats' budget while appearing with local government officials to denounce more borrowing. "Let's fix the budget problem once and for all," Schwarzenegger said. The budget machinations are occurring as the Legislature churns toward what had been scheduled to be its annual adjournment Sunday, the constitutional deadline for most legislation to be passed. The budget, however, is not subject to that deadline. If there's no breakthrough this weekend, the multi-sided stalemate will continue indefinitely. To see more of The Sacramento Bee, or to subscribe to the newspaper, go to http://www.sacbee.com/. Copyright (c) 2008, The Sacramento Bee, Calif. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |