State budget done, Oakland gets to keep gas tax

The Assembly finally managed to get a budget through, although it’s over a billion dollars short of “balanced”. They’re still doing the property tax borrowing, but the proposal to take away gas tax failed! They also scrapped an insane proposal that would allow redevelopment agencies to extend their life by 40 years with no findings of blight. More on all this when I get a real blog about the whole thing up hopefully tomorrow, but this is a huge relief for Oakland, which would have been left basically without any money for roads at all if it had passed.

That’s only a small piece of good news, of course – the budget is horrible for Oakland and Oaklanders for many reasons. But at this point, we have to be grateful for small blessings.

As articles about the final deal start getting posted, I’ll update this post with links to them.

2 thoughts on “State budget done, Oakland gets to keep gas tax

  1. len

    dan waters makes a good case that this budget fix at best buys another 5 to 8 months time. by then you can’t repeat the one time timing tricks and the purposely optimistic revenue assumptions will have to be trimmed. supposedly there was an authorization in this budget deal to borrow from the state workers comp fund if private credit markets look at the budget and decide the state continues to be high risk of default/late pay.

    in turn, local counties and cities will have to keep cutting their budgets and trying to raise fees and taxes until equilibrium point is reached.

    a jobless recovery where the usa credit markets extend credit to more lucrative overseas businesses and credit worthy govts is not unlikley. then oakland will get the courage to tell its employees to work full work weeks for reduced pay.