State Budget Update: A Fair & Balanced Approach?

The state legislature's budget conference committee recently unveiled its plan to close California's $24 billion budget deficit, but Arnold Schwarzenegger has already threatened to veto this plan, because it includes $2 billion worth of taxes on oil companies and tobacco companies.

Although conference committee members have attempted to moderate many of the draconian cuts proposed by Arnold Schwarzenegger in May, which included the complete elimination of Healthy Families, CalWORKs, Cal Grants and In-Home Supportive Services (IHSS), the conference committee's budget proposal still relies heavily on spending cuts to balance the budget.

Specifically, the budget conference committee is proposing:

• $11 billion worth of cuts to education, health, social, and other programs
• $10 billion worth of accounting maneuvers
• $2 billion worth of revenue solutions consisting of an oil severance tax and a tax on cigarettes.

While Child Care Providers United (CCPUnited) of California applauds the budget committee's decision to reject many of Schwarzenegger's most damaging proposals, CCPUnited feels that the committee must be more courageous in its pursuit of a fair and balanced approach.

We understand that the two-thirds budget rule makes it nigh impossible for Democrats to pass a budget containing any tax increases without Republican votes. However, $2 billion worth of revenue solutions in comparison to $11 billion worth of cuts can hardly be called balanced.

That is why we must continue to press the legislature and the governor by taking the following actions:

1) Call your legislator TODAY and EVERY MONDAY & THURSDAY - Tell them that we need more revenue solutions.

Click here to find the contact information of Assembly Budget Committee members.

2) Write to the legislator in your district and ask them to end wasteful tax breaks for big business. This is worth $2.5 billion!

Click here to find the legislator in your district.

3) Take pictures of children in your home busy doing activitiesor being cared for and/or have childrenmake art work, handprints, or footprints to send to the legislature with this message:

-We need more revenues!
-End tax breaks for big business!

Remember to get written permission from parents before sending your kids' pictures or artwork to legislators.

4) Ask your clergy leader to speak in favor of new revenues and urge your local congregation to call their legislator on Mondays & Thursdays.

5) Tell your story to your local newspaper - many providers depend on Healthy Families for their own children. Your local union officehas sample "Tell Your Story" guides.

6) Urge parents to join the movement to pass a fair and balanced budget.

You can reach Child Care Providers United of California at 866-336-9333 if you need help or more information.

Below is a list of revenue solutions and measures that CCPUnited has previously called for:

• End wasteful and unnecessary tax breaks and credits to private corporations ($2.49 billion);
• Raise income tax rates on the wealthy to 10% for those earning more than $300,000 per year and 11% for those earning more than $600,000 per year ($5 billion);
• Broaden the state income tax to services such as amusement parks and professional sporting events ($1.1 billion);
• Institute a 5-cent tax on alcoholic drinks ($585 million);
• Raise the corporate income tax rate to 9.3% ($470 million);
• Institute a tax on carbon dioxide pollution ($7.5 billion); and
• Restore the vehicle license fee (VLF) to 2% ($2 billion).