Gas-tax bill holds schools harmless
Blog by John Fensterwald/Educated Guess
With teachers and college students taking to the streets to protest budget cuts on Thursday, Democrats in the Legislature took a step toward restoring $900 million of the more than $2 billion that Gov. Schwarzenegger has proposed to cut from K-12 schools and community colleges. They did so, largely along party lines, in passing a variation of the “gas-tax swap” that Schwarzenegger proposed. That’s the sneaky plan to eliminate the 6 percent sales tax on gasoline and replace it with a 17.3 cent excise tax on gasoline. Doing this will free more than $1 billion for the general fund, because there were tighter restrictions on the use of the sales tax revenue. (more...)