Governor Creates Commission to Update State’s Revenue System
To help prevent the state’s feast-or-famine Budget cycle, Governor Schwarzenegger issued an executive order on October 30, 2008, creating a bipartisan Commission on the 21st Century Economy. Its goal is to reevaluate and modernize California’s revenue laws that have not kept up with the state’s economy.
All four state legislative leaders praised the action, citing the need to keep California competitive in today’s global economy and to update a revenue system that was created during the 1930s.
The bipartisan commission will be composed of 12 members, half of whom will be appointed by the Governor. The remaining members will be appointed by legislative leadership: three by the Senate President pro Tempore and three by the Speaker of the Assembly.
The Commission is tasked with developing a report to the Legislature and the Governor by April 15, 2009, that will provide recommendations to change laws to achieve the following goals:
· Establish a 21st century tax structure that fits with state’s 21st century economy
· Stabilize state revenues and reduce volatility
· Promote the long-term economic prosperity of the state and its citizens
· Improve California’s ability to successfully compete with other states and nations for jobs and investments
· Reflect principles of sound tax policy, including simplicity, competitiveness, efficiency, predictability, stability, and ease of compliance and administration
· Ensure that the tax structure is fair and equitable
Members are expected to be named prior to the Commission’s first meeting in November.
—Dave Heckler