Senate Budget Committee Vice Chair, Republican Senator Bob Dutton of Rancho Cucamonga, today issued the following statement after the California Employment Development Department announced the state’s unemployment rate reached 9.3 percent in December:

“No one would disagree that California’s economy is struggling and this state is clearly in a recession. As California searches for effective ways to close a projected $42 billion deficit over the next 18 months, several proposals have been put on the table. One proposal is to cut the number of paid holidays, or 1 holiday plus a personal day, given to state employees. Cutting 2 holidays would reduce the number from 13 to 11.

“Keep in mind most employees in the private workforce get six paid federal holidays.

“The proposal would combine Lincoln’s and Washington’s birthdays into one paid holiday in February and eliminate Columbus Day. That proposal would save the state an estimated $75 million a year.

“I was told that type of cut was draconian.

“Imagine that. While the unemployment rate is now at 9.3 percent statewide, Democrats believe it is too drastic a measure to eliminate just two paid holidays for state workers!

“The unemployment rate in California is likely to get even worse as many companies have announced in the last several days that they will be either closing their business or eliminating jobs.

“For example, Circuit City will be closing all of its stores resulting in the loss of 30,000 jobs; General Electric is looking at cutting as many as 11,000 jobs this year; Pfizer is planning to cut 2,400 jobs; Advance Micro Devices, headquartered in Sunnyvale, is planning to cut 1,100 jobs; and Blue Shield is planning to eliminate 1,000 jobs.

“In spite of this news Democrats are proposing to increase taxes now with the promise of cuts later. Quite frankly our economy can’t take it. Some of the tax proposals they have put on the table include increasing the sales tax, imposing a ‘nickel a drink’ tax, taxing services like getting a haircut or going to the vet and even increasing tax on gasoline by 13 cents a gallon.

“This state’s priority must be to put Californians back to work and to create an economic stimulus package that will help turn the table on these rising unemployment figures. Taxing our way out of this problem isn’t the solution and will only cause much more damage to our economy.”

Below is what some of those who would be affected by the proposed tax increases are saying:

“This (veterinarian services) tax will significantly affect the health and welfare of California pets. Veterinary clients will not be able to afford treatments for their animals which will be detrimental to animal health and to the health of the public at large. Further, this tax is discriminatory in that it singles out only one healing arts profession.”
- California Veterinary Medical Association

“With both the national and state economy stalled, our industry is particularly vulnerable to any substantives changes in the rate of taxation. Now is not the time to saddle small businesses, and in particular retailers, and consumers with increased taxes.”
- Mark Arabo, President & CEO, Neighborhood Market Association

“The California Alliance for Golf would like to point out that the recent real estate downturn has hit the golf industry particularly hard. Numerous California golf courses are in foreclosure or bankruptcy. At the same time, golf courses operate on very slim margins. The increased tax proposed would put several thriving businesses and employees out of business.”
- California Alliance for Golf

“While a “nickel a drink” is a catch slogan it hides the fact that it will impose a dramatic new burden on restaurants and other small businesses in California at the worst possible time. These new taxes would reduce sales revenue in the hospitality industry by an estimated $1 billion and cause the loss of 20,000 jobs at a time when the California economy has already lost some 77,000 jobs.”
- Distilled Spirits Council of the United States

For more information about the latest budget news, please visit: http://www.SenateRepublicanBudget.com.