SB 974 (Steinberg)
Undermines Economic Development - Threatens California’s economy and economic recovery by effectively gutting the California Enterprise Zone (EZ) program hiring tax credit and in turn increasing employer taxes in order to fund a new education tax credit. There were enough votes to get killed but may become part of the budget deal
• No budget still and today is the first day of our fiscal year
• This the 23rd time in 30 years a budget has not been in effect
• Democrats met and don’t want to cut education, human services or layoff state workers
• Attorney General Jerry Brown continues to say we cannot borrow to get out of this fix (Prop 58)
• Candidate Jerry Brown (Gov) just wants cuts made now and he will restore once in office
• Funds to run out in mid August, anything the controller is not required to pay, will give an IOU
• The Governor continues to look at dropping state employees to minimum wage
• The leadership in session must be available within 24 if a deal is struck, back on August 2
Prop 18 Water Bond:
Governor would like to postpone and put on ballot in 2012, will be a Presidential year and would have a better chance of passing, if put up now it would probably lose. Since it may be postponed some asking for it to be rewritten, no legislative action will be decided until all are back in town Aug 2.
You are encouraged to go the Cal Chamber’s website www.calchamber.com to view the letters you can send to oppose / support these bills.