Red Alert Update!

BUDGET UPDATE

This e-mail is to update you on what transpired with regard to the budget gap proposal considered by the Legislature yesterday.  As you probably know, Democrats in the Legislature proposed a package of bills intended to address part of the massive budget gap the state faces.  The budget proposal required 3 percent withholding on payments to independent contractors, as well as increases in income, sales and gasoline taxes.  C.A.R. communicated its opposition to every member of the Legislature and sent a Red Alert to REALTORS® residing in Assembly districts held by Democrats so that legislators would hear directly from REALTORS®.

The Democrats contended that the combination of fee and tax increases only required a majority vote – instead of a two-thirds vote – for approval and, ultimately, the budget gap package was passed to the Governor with only Democrats voting “aye.”  However, Governor Schwarzenegger announced late yesterday that he was going to veto the package because it failed to also contain the additional program cuts and economic stimulus provisions that he is seeking. 

C.A.R. will continue to monitor the various budget proposals and keep you apprised of any provision that may affect you.

Thank you for taking the time to voice your opposition to the 3% withholding requirement.

For More Information

Contact DeAnn Kerr at deannk@car.org or Christopher Carlisle at christopherc@car.org or call C.A.R.'s Government Affairs office at 916-492-5200.