Thursday, December 4, 2008
5pm-7pm
12501 East Imperial Highway, Suite 210
Norwalk, CA 90650

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"The Legislative Analyst Office's (LAO) report on the potential $28 billion-dollar deficit that could face California in 2010 is disturbing. It really sets into perspective the critical situation we now find ourselves in. In the coming weeks, the Legislature will face tough decisions that will challenge many Californians. In order to deal with a growing deficit, a rational approach must be taken to ensure that clear and reasonable measures are implemented to lift California out of its financial crisis.

As the Legislature convenes in a special session, I plan to address issues of importance to all Californians who find themselves struggling in today's economic climate. It would serve everyone well in state government to listen to and review all proposals and plans, whether from the LAO's office or otherwise, in order to determine the best and least harmful plan of action.

We must return our state to a level of economic activity that benefits businesses and individuals alike, without harming our academic institutions that provide our future workforce, or further affecting those currently facing financial setbacks."

By Assemblyman Tony Mendoza

Just a day after an historic national election, California’s governor called for a special session of the state’s legislature to deal with a new budget shortfall of $11.2 billion.

The deficit facing California has increased since the budget was passed in September growing from $3 billion to its current projection.  The governor’s proposal to deal with the problem is a combination of tax increases and cuts.

First on his list, raise the state’s sales tax by 1.5 percent.  California already has the highest sales tax in the country.  For the residents of Los Angles County this means paying 10.25% on things we purchase.  The governor would also like to see a new $12 fee on vehicle registration, a five cent tax on alcoholic beverages served or purchased, and a $2 billion cut in spending on education.

Each of these items and the others proposed by the governor merit discussion, especially when you consider that major reform is in need throughout many facets of the state’s budget process and programs. 

Take for example the state’s unemployment insurance fund.  Without restructuring, the fund is in jeopardy of running out of money by January of 2009 and could leave the state with a new deficit of $5 billion by the end of 2010.

As the legislature convenes to work through these difficult decisions, one crucial question remains - a remnant that was never answered during the first budget debate: Has governor Schwarzenegger reached out to members of his own party to ensure that real discussions are ready to take place to solve these problems without delay or political stalemating?

The Republican leadership issued a letter to the governor in mid-October opposing any discussions that include increases in taxes. That, of course, is when the state was facing a $3 billion deficit.

Knowing that Republicans had railroaded discussions and passage of our current budget just a few months back, the governor should have begun talks with them  prior to announcing his November revise.

Having everyone on the same page makes dialogue on the issues a bit easier and prepares everyone for the tough decisions that must be made.

Perhaps, with this newly revised shortfall, the governor can convince others in his party to look at and discuss everything including strategic short-term taxes to carry us through.  If the governor is able to do that, then we would be witness to two truly historic events in less than a month.

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Welcome to my website!  I encourage you to visit frequently as this site is updated on a regular basis with events taking place in the 56th District and with information related to legislation and policies that affect you.

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Again, thank you for visiting and I look forward to your next visit.

Sincerely,

Assemblyman Tony Mendoza
District 56