Assemblyman Rick Keene was one of nine Republicans in the lower house to cast a vote for the budget that passed out last Thursday night (or was that Friday morning)? He has submitted the following commentary to add to the discussion on the state budget:
Seeing confusion about the budget the Assembly passed last Friday morning, I wanted to clear a few things up. First, either chamber can pass a budget to be considered by the other. The second body can then choose to pass it or not; both have that right as co-equal houses of the Legislature.
Second, given that Democrats have the majority and can reject any budget we would prefer, in the end we did make significant strides:
– We reduced a 2.7 billion dollar proposed operating deficit this year to less than ½ billion (after vetoes).
– We cut the structural deficit by 100 million.
– We paid down 3 billion in debt.
– Plus we are rolling forward a 3.4 billion dollar surplus to pay for shortfalls.
– We passed a 330 to 700 million dollar tax credit package to cut taxes on new job producers, rewarding new job creation in the slow economic times we find ourselves in.
– We did not raise taxes.
It dramatically improved our economic circumstances, particularly given our lack of new revenue growth. All things considered, the budget we passed was very responsible.
Third, however, is neither house has the last word on the budget. If our Senate Republican colleagues can improve it beyond what we gave them, we support and applaud them.
As for the economic stimulus package passed by the Assembly, a few comments are in order.
First, it is fundamental to Republicanism that if you cut taxes on actual job production, that economic growth will follow and more jobs are created. As a result, more is paid to the State through volume instead of a higher rate of taxation. Under the agreement, we have five years to prove that it works; if not, the package sunsets.
Second, regarding the drafting error in the package that some have mentioned, its worth noting that Legislative Council drafts the Senate’s legislative language as well. House of origin would not have mattered. It is correctable, if all agree to do so. The Assembly has made that commitment, so can the Senate.
Lastly, I urge my Republican colleagues to insist on the passage of this tax relief as a part of their final budget deal. We have not had this kind of opportunity to reduce taxes since reducing the Vehicle License Fee. Please don’t miss this chance to prove that reducing taxes will create jobs and state revenue at the same time.
I think that the final upshot of Keene’s piece could be interpreted thusly: if Senate Republicans have a chance to vote on the same package that was passed out of the Assembly (with his vote), Assemblyman Keene urges an "aye" vote. If, however, the tax releif package is not a part of the deal, he would urge a "No" vote.