California budget crisis: Schwarzenegger "call for deep reductions in already suffering local mass transit"
Just saw this in the Los Angeles Times that California's budget is in such a mess that Governor Schwarzenegger is proposing to do a complex fund swap to essentially pilfer public transit funds and funnel it into fixing California's other problems. This makes it more likely that OCTA will cut the original 300,000 hours of bus service as proposed earlier this year.
From the article "Schwarzenegger to seek federal help for California budget":
The $1 billion in mass transit and other transportation money the governor will propose raiding is supposed to be off limits to the state for plugging budget gaps. Court rulings have declared previous attempts to get at it illegal.
The administration will seek to get around those rulings through a complex gas tax swap. As part of the scheme, an existing sales tax on gasoline would be eliminated and, at the same time, a new per-gallon excise tax would be imposed. The price at the pump would drop about 5 cents per gallon
The shift would gut a voter-approved measure, Proposition 42, that protects how current gas taxes are spent. Public transit -- buses, rail and other forms of mass transportation -- now receives 20% of all gas sales tax. After the tax swap, that requirement would disappear. The tax swap could also cost schools -- as it would result in the share of tax revenues they are entitled to under state law dropping by more than $800 million.
Jim Earp, executive director of California Alliance for Jobs, a group that advocates for public works spending -- including on transportation -- derided the plan as a scheme "to rob Peter to pay Paul."
"We're not solving any problems. We're just moving money around from one cup to another," Earp said.
Comments
The end is nigh. Future War
The end is nigh. Future War is coming.
We all know how we hate
We all know how we hate traveling in public transit where we have to breathe in others people stinky arm pits. Especially if we have to breathe in when they are sneezing or coughing. So I came up with a product idea and wanted to know your feedback. I have created a survey to gauge the product’s utility value and would really appreciate your input. Thank you all !
Survey Link : http://www.surveymonkey.com/s/public-transit
This swap looks revenue-neutral...
So wait a second. What the Governator is saying is that, instead of simply paying out public transit funds that come from gas taxes, he'd rather cut the gas tax and eliminate the revenue stream those funds come from? This doesn't sound like plugging a budget hole as much as it sounds like spite.
And while the courts take two years to rule this scheme illegal, our transit systems will suffer.
What about those huge eastern transit cuts?
I can't wait for the poster guy that doesn't read the news to come here and to post that he doesn't see any cuts in other cities such as New York or Chicago. My advice: Learn how to use the internet and how to search. New York is facing massive service cuts and fare hikes. And Chicago probably will have another round of hikes and cuts on top of those that went into effect in 2009.
How about some letters of outrage to the Governor Gridlock? "Please sir, may I have some more?"
Transit Cuts - Eastern.
Fiscal problems are nationwide and there are massive transit cuts in many smaller municipalities across the nation. Didn't need the internet for New York though as I watched a good report on WPIX via satellite. Very bad if it happens. California is overladen with bureaucracies that eat up money with duplicate missions and which create a strong anti-business climate. These are not being eliminated.
Tony
Business as usual for Gov. Goper
Recognize that this is republican standard operating procedure -- cutting taxes, services and jacking up fees. The bad economy is just an excuse. My advice is to resist. They are usually wimps, and back down rapidly.