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California Passes Budget with More Gimmicks

June 29, 2011 J

California Passes Budget with More Gimmicks

State Chairman Peter Foy and State Director David Spady of grassroots advocacy organization Americans for Prosperity California issued the following comments regarding the passage of the budget crafted by Governor Jerry Brown and Democrats in the state legislature:

“Californians have once again been let down by their governor and the majority party in the state legislature,” stated State Director David Spady. “The budget passed by state Democrats and signed by Governor Brown is full of more accounting gimmicks. They irresponsibly passed a budget anticipating a best-case-scenario level of revenue for the state.

“While we all hope the state’s dire economic conditions will turn a corner and prosperity will return, government cannot base its spending on such numbers. Instead, it should use the same accounting principles as any business: always anticipate the worst-case-scenario and prepare your spending accordingly. If revenues don’t increase, the legislature will be back to debating an imbalanced budget yet again in just a matter of months.”

“The silver lining in this budget is that Republicans held together and avoided extending the tax increases on our sales tax and vehicle licenses,” stated State Chairman Peter Foy. “Californians will receive at least a small amount of tax relief in two days when these taxes expire.

“Unfortunately, as part of this budget, Governor Brown and state Democrats have decided to drive yet another successful business from our state. The sales tax on Amazon affiliates sends the message to businesses that California sees them as an ATM for government spending—not the job-creating, prosperity-producing engines that push our economy forward. The increased tax revenue Governor Brown and Democrats in the legislature need in order for their budget to pencil out isn’t going to materialize if they keep driving businesses from our state.”

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