Budget may ride on cuts in transit - Lawmakers close in on a spending plan that would divert $1 billion from projects, including several in Los Angeles.
SACRAMENTO — State lawmakers appeared to be closing in on a spending plan late Thursday that would divert roughly $1 billion away from mass transit, forcing Los Angeles to put off plans for extending parts of the Expo light rail line and widening some freeways.
The money, most of which comes from a sales tax on gasoline paid by drivers, would instead be used to help erase a multibillion-dollar deficit that the state has been carrying for years. The decision to divert the funds came as part of a deal brokered by legislative leaders in an effort to lift a three-week budget impasse.
The compromise spending plan would also cut $124 million in welfare payments to the elderly and disabled and scale back drug treatment programs for prisoners. It includes multimillion-dollar tax breaks for the film industry and other businesses.
Most of the moves come at the insistence of GOP lawmakers, who have been blocking passage of a budget until more cuts were made.
"When it comes to the question of balancing a budget, tough decisions are necessarily made," said Sen. Mark Ridley-Thomas (D-Los Angeles). "This is a compromise to get a budget done, rather than wreak havoc on the state by not having budget."
Although the cuts may go far enough to draw the votes of GOP members in the Assembly, the Senate Republican caucus continues to hold out for more. Senate Leader Don Perata (D-Oakland) is vowing not to make additional concessions, leaving the odds of a budget being adopted within the week uncertain. The Legislature, which was due to adjourn today for a monthlong summer recess, was preparing to vote on the budget late Thursday night or early today.
Democrats said they agreed to the big cut to transit funding in an effort to avoid having to take money away from schools and healthcare programs. Republicans justified the cut by noting that state transportation funding will continue to increase overall.
The money that would be used to balance the budget would be siphoned from a windfall from the sales tax on gasoline generated by soaring prices at the pump. Even after the windfall is diverted, Republicans say, there still would be funds to increase spending on transportation above what it was last year.
But local transportation officials said the tax was created specifically to fund transportation projects. They characterized the cut as a major setback, warning that certain projects could get delayed for years.
