The California State Senate and Assembly were back in action this week to consider the final piece of the mid-term budget proposals aimed at closing nearly a quarter of California’s $20 billion deficit. The cornerstone of the proposal sent to the Governor today, March 4th, is a controversial transportation package, which provides for a complex gas tax swap aimed at freeing up $1.1 billion in General Fund dollars that are constitutionally tied to transportation due to Prop 42.

The proposal has stirred up considerable controversy between both parties, who are locked into a debate on whether the swap constitutes a tax increase and should therefore be subject to the Prop 13 protected two-thirds vote requirement.  Democrat leaders have maintained that the tax swap does ... » More