CLT&G Update
Wednesday, June 4, 1998

And while I'm here, we've decided to get into the word-game. No longer will we refer to that billion dollars of taxpayers' money the Legislature is fighting over how best to spend as a revenue "surplus." Let's call it what it is; let's point out each time we refer to it that this billion dollars above what the state needs to run itself is in fact a revenue EXCESS!

The state is taking a billion dollars more from taxpayers than it has a budgeted need for -- just because it wants to. I'm happy to relay that Hedlund's amendment had the unanimous support of all senate Republicans, and even one Democrat, as Barbara reports, below.

Chip Ford  –

A MESSAGE FROM BARBARA

The amendment was brought to the floor and Sen. Hedlund got a rollcall vote, so we know that all the Senate Republicans -- Matt Amorello, Mike Knapik, Brian Lees, Henri Rauschenbach, Bruce Tarr, and Rich Tisei -- voted with him. They were joined by one Democrat, Steve Panagiotakos, who had made the stabilization fund his issue when he was in the House and, unlike Brian Joyce on the income tax rollback, stayed with it after he won his Senate seat.

We appreciate having another good rollcall vote in the Senate for our CLT&G rating. The bad news is, the amendment didn't pass. Now we wait for the budget conference committee, controlled by Finneran and Birmingham, to deal with Finneran's plan to increase the stabilization fund from 5 to 7 percent of state revenues before excess money flows into the tax reduction fund for an increase in the personal exemption.

It will be interesting because Birmingham's Senate tax package increases the personal exemption, and yet Finneran's House tax package decreases it. But Birmingham's increase in the personal exemption is automatically repealed if the ballot question to equalize the tax on so-called unearned income is passed by voters, while Finneran's tax package does the ballot question tax cut now!

Barbara –