Speaker Bass Highlights Discussions to Protect California's Budget During Financial Crisis

Published on Oct 11, 2008 - 7:24:09 AM

By: Assembly Speaker Karen Bass

Hello, this is Assembly Speaker Karen Bass.

This has been another tough week for the nation's economy. And California continues to face major challenges from the national economic downturn.

Foreclosures in California make up over a third of all the foreclosures in the country.

The freezing of credit lines is affecting our residents and businesses, and has also put our state finances in jeopardy - estimates are that there will be $3 billion less in state revenues than projected in the current budget.

This week the legislative leaders and the governor met to discuss ways to help meet those challenges.

Typically at this time of year California and other states take out short term bridge loans until expected revenues arrive.

The state needs these "Revenue Anticipation Notes" to get the cash to keep nursing homes, child care centers and emergency response teams up and running. So we need to come together, Democrats and Republicans, to address the state's economic situation in a sensible way that reassures the markets that California is a good investment.

One key part of that is moving forward quickly to bring about real reform and overdue modernization of the state's tax structure. A revenue system built for the 1930's simply doesn't hold up in 2008.

Creating a high-level bipartisan commission to change that is one of the very first things I proposed as Speaker -- and I am pleased that the governor and the other legislative leaders have been very supportive. Several of the finest experts in the state have indicated interest in serving as part of this vital long-term solution, and we'll have more details to share about that very soon.

California's leaders must continue to take serious, thoughtful and, wherever possible, united steps that reflect the real values of the people. Our state has faced great challenges before, and I am confident that with the right decisions and actions, we will make it through these economic challenges facing our nation.

This has been Assembly Speaker Karen Bass.

Thank you for listening.

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