The state is running out of money. They may stop paying legislators as soon as February. After that who know who gets paid and who doesnt. Eventually lowly legislative staffers wont get a paycheck. That includes me unlessthe state gets a budget deal.

Currently, the plan seems to be to cut a little (not enough) of the $40 billion in new spending that has appeared in the last four years AND find new fees and increasing fees on various. Now these fees look like taxes. Tax hikes require a two-thirds vote. So far there isnt a two-thirds vote for tax increase. So now they are fees and the Governor can get then with 41 votes.

There will be a legal challenge, but in the meantime they think they have a solution. And with Ron George Supreme Courts approach to jurisprudence who knows what will happen.

But here is their problem. Fees can have a referendum placed on the ballot to stop them. Taxes cant. A two-thirds deal avoids all this, a 41 vote deal doesnt

It is easy to file for a referendum. Ive done it. Once a bill become law, you send a check for $200 dollars to the Attorney General with a letter and presto magic you have ninety days to get the 433,971 signatures needed. (5% of the votes cast for Governor).

Rumors have it that the Howard Jarvis Taxpayers Association, George Runner or Tom McClintock are looking at such a scenario. All of them have been down the signature-gathering road before. But anyone can file the paperwork.

Here is the interesting part. Once that referendum is filed the law cant take effect. Even if the person filing the paperwork doesnt try to collect one signature the law is on hold. It

Lets say the state raises taxes (oops I mean fees) to raise $12 billion dollars a year. A referendum is filed. It would be 3 months before they could get any money. They would be around $4 billion short. Plus if it qualifies they have to wait until the next election and passage for it to take effect.

Some friend of taxpayers will cobble $200 together to save taxpayers billions, if only for a short while.

That means mac and cheese for Easter in the Spence household.

This entry was posted on Monday, January 5th, 2009 at 12:00 am and is filed under Blog Posts.