State Budget: Neither Disciplined nor Fiscally Prudent

SACRAMENTO – Senator Andreas Borgeas (R-Fresno) issued the following statement on the passage of the 2020-21 budget:

“Despite the state struggling to emerge from both economic and public health crises, the legislative majority’s budget adds more than $9 billion in new taxes on California businesses,” said Senator Borgeas. “Businesses and employees are struggling to survive and more taxes will only prolong this fiscal crisis.”

“Surprisingly, California leaders are moving forward without an economic recovery plan. Therefore, I respectfully requested the Governor and Legislative leadership to create an economic recovery plan that includes increased economic investment as well as proposed cost savings before even considering any tax increases. To do otherwise is neither disciplined nor fiscally prudent.”

Senate Bill 74 – 2020-21 Main Budget Bill

“I voted against SB 74 – the main budget bill. This budget continues to fund misguided policies and new proposals such as $22 million to enforce AB 5. In the midst of massive unemployment, the Legislature should allow people the flexibility to work as independent contractors.”

“While I do support investments in emergency preparedness and wildfire protection, this budget includes over $40 million for public safety power shutoffs (PSPS), which have an adverse effect on our communities. Protecting Californians from wildfire threats must also include forest management, home hardening, California Environmental Quality Act (CEQA) streamlining for emergency preparedness, and greater oversight of Investor Owned Utilities. Our priorities should focus on tax credits for home hardening, forest management, and the reissuance of insurance policies.”

“I also oppose allocating hundreds of millions of dollars for programs that do not create affordable housing. The state of California should focus on CEQA litigation reform and delaying the implementation of the Vehicle Miles Traveled (VMT) regulation.”

Assembly Bill 76 – K-12 School Funding Budget Bill

“I was pleased to vote for AB 76 and support the continued investment in our state’s education. This bill allows school districts the means to operate with no reductions in programmatic spending while also creating a major savings in the state’s budget. The state must prioritize funding for K-12 school districts, community colleges and higher educational institutions in order to ensure a stable economic future and trained workforce.”

Assembly Bill 85 – Tax Increases

“I voted against AB 85, which places $9 billion in new taxes on businesses. While this budget does help new limited liability entities in their first year of operation, it also places significant economic hurdles on businesses struggling to recover from the COVID-19 pandemic. Placing burdens on businesses could further exacerbate the economic recession in future budget cycles and expand the state’s deficit by inhibiting economic growth. Instead, the state of California should focus on creating a business friendly climate and investing in job creation.”