Following the release of Governor Gavin Newsom’s proposed 2019-2020 state budget, HJTA President Jon Coupal issued the following statement:

“It is troubling that Governor Newsom has proposed a budget with lots more spending coupled with higher taxes.  Moreover, he has proposed new mandates on businesses and local governments as well as depriving Californians from voting on certain kinds of local debt.  From the perspective of taxpayers, this is not a propitious start.”    

The proposed tax increases include the previously rejected surcharge on 911 service and a water tax on all California property owners that was killed in the legislature last year.  Coupal stated that, “while safe drinking water is a critical need, that is exactly why ensuring its availability should have a high priority from existing revenues.”

The bright spots for taxpayers is the Governor’s desire to grow the rainy day fund – in order to prepare for the inevitable recession – and also paying down pension debt.  “Despite the higher spending and tax hikes reflected in the budget, we hope that the Governor will be able to resist even more spending proposed by state legislators who want $40 billion in new ongoing spending.”