February 19, 2009 - 04:40 am
News Feed: California

Gas tax dead?

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Lawmakers are considering a last-minute change in the budget package that would eliminate the 12-cent per gallon tax on gasoline as part of negotiations to secure the final vote in the Senate from Sen. Abel Maldonado, R-Santa Maria. The tax was expected to raise $2.1 billion through June 2010.

Legislative leaders are examining various ways to make up the difference, including a greater reliance on federal stimulus funds, line-item vetoes by Gov. Arnold Schwarzenegger and a change in the 5 percent income tax surcharge, sources said.

Maldonado has demanded three constitutional amendments to secure his vote for the budget. He wants a ban on legislative raises during deficit years, no pay for lawmakers once a budget is late and a switch to a statewide open primary comparable to the top-two system that local governments use.

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