Yesterday, word leaked that Governor Jerry Brown was finally submitting his own plan to try and fill the state's looming $59 billion funding hole. His plan, a mix of fee increases, tax increases and funding from the state's cap-and-trade funds, would raise roughly $3.6 billion per year.
Critics on the left say the plan is not enough, business interests say the state needs to raise at least $6 billion per year.
Critics on the right refuse to support any plan that includes new taxes and fees.
For a new fee to pass, it needs the support of two-thirds of the legislature, meaning Brown needs a couple of Republicans to join the Democratic majority to pass the increase.
Here's a breakdown of how Brown will raise the fees, if his plan goes through. Leave your thoughts in the comments. Oh, and the legislative session ends on September 11; so whatever is going to happen has to happen soon.
- $65 annual fee for motor vehicle owners,
- 11 cent increase in the diesel tax,
- 6 cent increase in the gas tax,
- pinning the gas and diesel taxes to inflation so that it rises with inflation,
- $400 million annual allocation from state's cap-and-trade funds.
