Democrats want to raise taxes on rich to fund schools
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Democrats want to raise taxes on rich to fund schools

Speaker announces plan to put $1.7 billion into education annually.

SACRAMENTO — Assembly Democrats proposed Tuesday raising taxes on wealthy Californians to help increase education spending as an alternative to Gov. Arnold Schwarzenegger's proposed state budget. The Democratic spending plan calls for increasing the state income tax bracket on couples earning over $285,000 from 9.3 percent to 10 percent and to 11 percent on couples earning more than $570,000. The tax hike would generate about $1.7 billion a year for education spending.

"Above all else, Assembly Democrats believe that Californians deserve a budget that funds our schools and builds opportunity for our children," Assembly Speaker Fabian Nunez, D-Los Angeles, said. "That is why our budget is one that will provide our schools with far more resources for education than the one that the governor has proposed in his May (budget) revise."

Democrats are expected to have difficulty getting the proposal through the Legislature, where it will need a two-thirds vote — meaning bipartisan support is required — and then obtaining the governor's signature. Schwarzenegger and most Republican lawmakers oppose any tax increases to balance the budget.

"This proposal is dead on arrival, as far as increasing taxes," said Assemblyman Rick Keene, R-Chico, vice chairman of the Assembly Budget committee.

Democrats estimate the hike would generate about $2.4 billion when first implemented because it would apply to more than a full fiscal year, and then generate about $1.7 billion annually after that.

The Democratic spending plan also eliminates Schwarzenegger's plans to implement $408 million in pay cuts for state employees and home health-care workers and shift $469 million in teacher pension costs onto local school districts.

Schwarzenegger spokesman Rob Stutzman suggested the only way Democrats would get a tax increase approved would be for the Legislature to place it directly on the ballot — again a move which would require bipartisan support since it is too late now to draft an initiative and collect signatures in time for the expected special election this fall.

"As for a tax increase, the governor remains opposed to tax increases," Stutzman said. "If the legislature wants to put that forward, that's certainly their right to do so. If they can muster a two-thirds vote, they can put it on the ballot even."

"Other than that, they should have been out circulating petitions as the governor's allies were trying to put (the governor's reform agenda) on a ballot for a potential special election this fall."

CA Press Telegram ~ Harrison Sheppard ** Democrats want to raise taxes on rich to fund schools