Budget deal would include steeper car fees
State lawmakers are moving toward a deal to close California's deficit with the help of steeper car fees that would cost many drivers hundreds of dollars annually, according to people involved in budget talks.
Under the agreement, GOP lawmakers -- most of whom have signed anti-tax pledges -- would vote to triple the vehicle tax in exchange for a ballot measure that would impose rigid limits on future state spending. Democrats and advocates for the poor say such limits would cripple government services.
Motorists' annual fees would rise from 0.65% of the value of their vehicles to 2%. For a car or truck valued at $25,000, the increase would be $336.
The car tax would generate $6 billion annually for the state, helping to fill a budget gap that is projected to reach nearly $28 billion over the next year and a half.
The proposal is being championed by incoming state Senate leader Darrell Steinberg (D-Sacramento), who may be gambling that voters will reject the spending limits, as they have in the past.
"We don't comment on the specifics of negotiations, but this much is clear: The state is $28 billion in the red and we need new revenue," said Steinberg spokesman Jim Evans.
The plan creates a potential political quandary for Gov. Arnold Schwarzenegger. The last governor to triple the vehicle license fee was his predecessor, Gray Davis, and it played a large role in his recall. In his first act in office, Schwarzenegger cut the fee back down to its current rate.
Halper is a Times staff writer.
evan.halper@latimes.com
