by Julia Rosen [courtesy of Working Californians blogs]

It was just last week that there were rumors floating around that the Democrats were going to strip a roll-back on a tax break for oil companies. Bush is threatening to veto, but they are moving forward with it anyways. SFChron:

Democratic leaders circulated a summary of the legislation that includes the new taxes as well as a requirement for a 40 percent increase in automobile fuel efficiency, a huge increase in the use of ethanol as a motor fuel, and a mandate for utilities to use renewable fuels.

Republicans earlier this year blocked Senate attempts to pass new energy taxes, contending they would hinder domestic oil and gas production. Democratic supporters of the taxes said that with oil hovering near $90 a barrel and the industry making large profits, the tax breaks aren't needed.

The White House has said repeatedly that if the energy legislation singles out the oil companies for new taxes, advisers would recommend that President Bush veto the bill.

Of course restoring an old tax is an increase in the world of Bush. The Democrats are just seeking to repeal the tax breaks given to the major oil companies by the Republicans.

[courtesy of California Progress Report]

By Frank D. Russo

Senate President pro Tem Don Perata was noticeably absent from the budget signing ceremony in the Captol Rotunda in Sacramento. He released a two paragraph statement on the signing of the budget, already in the form of "pull quotes":

“I am pleased this budget maintains our commitment to education, rebuilds California’s infrastructure and invests in preventative programs,” Perata said. “But today’s action is not the end of the state’s difficult budget problems. We must now turn to the task of looking at our entire fiscal picture before we are faced with even more trying circumstances next year.

“I am disappointed that the Governor chose to veto money to aid the homeless mentally ill,” Perata added. “This program was part of our prevention efforts to help people succeed, stay out of prison, and ultimately save the state money.”

Most of the $703 million in cuts made yesterday by the Governor were not pretty and wee not what most Californians would call "fat". He had, of course, promised Senate Republicans weeks ago that he would make this amount of reductions in an attempt to get these budget holdouts to vote for the state budget--and got one of the two votes needed to get to the two-thirds margin to pass it on to him.