SACRAMENTO: Senator Sam Aanestad (R-Grass Valley) says he´s disappointed with the May budget revision plan released today in Sacramento, and predicts the spending plan will only lead to greater deficits in future budget years. Aanestad says he was prepared to support a budget that cuts spending and puts an end to the structural budget deficits that have plagued state finances for nearly a decade. But the North State leader says that´s not what the people of California are getting.
"Borrowing more money against future state lottery revenues isn´t the solution that Californians deserve when it comes to out-of-control state spending," said Senator Aanestad. "Senate Republicans made it very clear that we expect spending cuts to balance the budget. Unfortunately, the May budget revision borrows more so we can spend more. I can´t support that."
Senator Aanestad also expressed concern that the budget proposal will require voter approval this November. If voters reject proposed changes to the California State Lottery, which will shift money from education to pay off debt, Senator Aanestad says he will not support the Governor´s plan to temporarily raise the state sales tax by one percent.
"This proposal is telling taxpayers to either approve borrowing $15 billion or hand over your wallets for a tax increase," said Senator Aanestad. "I don´t think voters sent us here to threaten families and businesses with the prospect of higher tax rates. My constituents believe, as I do, that government should live within its means and quit spending more money than it has."
Senator Aanestad is also troubled by the revenue projections cited by the Department of Finance. The May budget revision is based on a projection that changing the state lottery will result in more than $15 billion in new revenues over the next three years. Senator Aanestad points out that the Department of Finance has rarely been right about revenue projections, and that the lottery has never produced even half of what they project in this current budget proposal.
"If you believed the projections cited by the Department of Finance last year, we would have a balanced budget," said Senator Aanestad. "The plain fact is, we don´t. We´re more than $17 billion in debt because the revenue projections made last year were spectacularly off base. We´ve got to stop the process of pulling numbers out of a hat, because clearly, this approach isn´t working."
Senator Aanestad says the budget proposal should take into account that people are paying record prices at the gas pump, more for goods and services and thousands of homes are falling into foreclosure.
"This budget," noted Senator Aanestad, "needs a lot of work."
"Borrowing more money against future state lottery revenues isn´t the solution that Californians deserve when it comes to out-of-control state spending," said Senator Aanestad. "Senate Republicans made it very clear that we expect spending cuts to balance the budget. Unfortunately, the May budget revision borrows more so we can spend more. I can´t support that."
Senator Aanestad also expressed concern that the budget proposal will require voter approval this November. If voters reject proposed changes to the California State Lottery, which will shift money from education to pay off debt, Senator Aanestad says he will not support the Governor´s plan to temporarily raise the state sales tax by one percent.
"This proposal is telling taxpayers to either approve borrowing $15 billion or hand over your wallets for a tax increase," said Senator Aanestad. "I don´t think voters sent us here to threaten families and businesses with the prospect of higher tax rates. My constituents believe, as I do, that government should live within its means and quit spending more money than it has."
Senator Aanestad is also troubled by the revenue projections cited by the Department of Finance. The May budget revision is based on a projection that changing the state lottery will result in more than $15 billion in new revenues over the next three years. Senator Aanestad points out that the Department of Finance has rarely been right about revenue projections, and that the lottery has never produced even half of what they project in this current budget proposal.
"If you believed the projections cited by the Department of Finance last year, we would have a balanced budget," said Senator Aanestad. "The plain fact is, we don´t. We´re more than $17 billion in debt because the revenue projections made last year were spectacularly off base. We´ve got to stop the process of pulling numbers out of a hat, because clearly, this approach isn´t working."
Senator Aanestad says the budget proposal should take into account that people are paying record prices at the gas pump, more for goods and services and thousands of homes are falling into foreclosure.
"This budget," noted Senator Aanestad, "needs a lot of work."
