State lawmakers pass proposal to cut budget deficit by $1.1 billion

The state Legislature on Thursday approved a proposal to pare more than $1 billion from California's budget deficit through a complicated maneuver that would change how gasoline is taxed in California without altering the sums collected in taxes at the pump.

The plan would eliminate current restrictions on how gas taxes have to be spent, providing lawmakers the freedom to use the money to reduce the state's estimated $20 billion deficit.

As a result, funding for mass transit, such as bus and rail lines, would be substantially reduced this year. The plan would save the state an estimated $1.1 billion through June 2011.

"I think this is good policy," said Sen. Alan Lowenthal (D-Long Beach), before the measure, AB 6 X8, was approved.

The governor on Wednesday evening said he had not yet reviewed it and declined to say if he would sign it.

-- Shane Goldmacher in Sacramento

Comments

[Scott Piotrowski]

If we're going to take away funding for mass transportation, maybe the state should shut down any and all funding to construct an unnecessary, tens-of-Billions-of-dollars tunnel in the San Gabriel Valley, too. Why in the current economic situation are we spending tens of millions to STUDY a tunnel that isn't needed? Say no now to the 710!

From Our Wallet To Your Hole
Not Under ANYONE'S BackYard!

[TAM]

This call created financing, and it will end up like the mortgage mess. Maybe there will not be the subway to the sea, and the Pint Size Mayor will be upset.

[dogrob1]

dont sign it!sooner or later gas taxes will have to go up to balance everything out!take from PETER to pay PAUL==file BK and be done with it,or let more convicts out,its a down hill fall now.