Sen. Oropeza's Outlook for 2007

Sen. Oropeza's outlook for 2007

As the new Senator for the 28th Senate District and as the new Chair of the Senate Taxation and Revenue Committee, I hope to fairly represent your interests in Sacramento.

I will fight for you, I will fight for our residents, and I will fight for fair and equitable business policies that befit our Golden State where everyone is equally accountable and responsible.

Some folks may ask: "Why do you want to be chair of the Revenue and Taxation Committee?"

My answer: California is on the threshold of a new era. Voters approved nearly $40 billion in infrastructure improvements and the Governor recently proposed another $30 billion.

As a Southland native who chaired the Assembly Budget Committee and the Assembly Transportation Committee, I vow to put that experience to work to make this a better California.

As the sixth-largest economy in the world, I can see no better place to be than in a position to analyze revenues and tax incentives to see what makes the state work.

General overview of California's economy

Each year, nearly 530,000 hopeful new residents pour into California. This overwhelms our roads, schools, healthcare system and water resources. By 2030, there are estimated to be 46 million residents in our state, up from the current 37 million.

We know that we have businesses and jobs here and that they have been fairly constant since the early 1990s. I would like to find a way to increase quality job growth in the state.

We also know that a vibrant economy requires a highly educated workforce, affordable housing, better transportation, quality healthcare and a stable water supply.

Here is what I believe:

California can be the most vibrant economy in the world with superior job growth, quality programs for its residents and a reliable infrastructure.

I believe that we are all a part of the solution and no one group should bear the burden for everyone else.

I believe that if we were really willing to work together we can accomplish great things for the businesses of the state and the people of the state.

My basic principles…

No issue should be considered in isolation — we must consider each proposal as a part of the overall budget and the overall economy.

Each issue should be considered in the context of the people it helps and hurts and the overall infrastructure of the state.

Increased job growth must include quality jobs for all cross-sections of the economy, from manufacturing to service.

We must work with all interested parties to ensure that we have the best state and the strongest economy possible.

California's structural deficit

The state faces at least a $5 billion structural deficit. It will be difficult to close the gap between revenues and expenditures without stripping basic services that the state has held as a priority.

Individual tax incentives will have to be considered in the context of the entire budget. These will be difficult to enact because tax incentives require either new sources of revenues or significant cuts in other areas of the state budget.

In a year where some are advocating that the deficit may require cuts to vital programs that help children, seniors, vulnerable populations, and individuals of low and moderate incomes, it is difficult to make tax incentives a priority. I do not support cuts to our most vulnerable residents.

Healthcare Reform

The governor and the Legislature have made health care reform a priority this year. Almost 7 million Californians are without health insurance and the escalating costs of health care poses challenges to business and economic growth similar to worker's compensation a few years ago.

Clearly, there is a great deal of interest from all parties to work together to craft a solution to expand coverage to the uninsured and reduce soaring health care costs.

As you may be aware, the Governor, Senate President Pro tem Don Perata and Assembly Speaker Fabian Nunez have all released plans to reform the healthcare system and provide insurance for the uninsured. The Legislature will examine these proposals this year.

These plans contain varying forms of fees, taxes, penalties and requirements.

My committee plans to review the requirements of these plans. We will analyze them appropriately so that we understand their overall impacts.

Local and statewide transportation impact

Clearly, there is a huge amount of unmet need both in local and state infrastructure.

Just as clearly, voters want something done about it.

As you know, voters approved nearly $40 billion in infrastructure bonds last November, including a record $19 billion for long overdue transportation projects.

In addition, the Governor's recently proposed to spend another $30 billion in bond-financed projects for education, water storage and prisons.

The portion of the bond that is most timely is the Corridor Mobility Improvement Account portion, which will provide $4.5 billion, primarily for highway construction.

The deadline for transportation planning agencies to submit their proposed projects was Monday, January 15, 2007. Next, the California Transportation Commission will adopt those projects to be funded by March 1, 2007.

Our lead local planning agency, the Los Angeles Metropolitan Transportation Authority, has applied for $1.7 billion of the $4.5 billion available statewide for the Corridor Mobility Improvement

Account portion of the bond.

Included in that $1.7 billion requested by the MTA, is $730 million to extend the northbound 405 carpool lane between Interstate 10 and Highway 101.

The Legislature's next step is to provide additional guidance during the coming months on the development of funding guidelines for port air quality, state and local partnerships that match local funding, transit security, and trade corridor infrastructure programs. A number of bills are being introduced to develop these guidelines.

In short, billions of dollars are at stake and the Legislature is at work developing criteria.

I will fight to get our fair share. Our quality of life and our ability to sustain economic growth is dependant on the easing of congestion and efficient movement of goods.

In summary

The Golden State has a bright future. Voters have directed us to launch a massive building program that promises to benefit residents for years. Transportation will be a key part of that building program.

At the same time, I will be at the helm of the committee key to revenue and taxation policy. I promise to be fair and hear all sides but my overall goal will be to do what's fair for all Californians.

I welcome your support, input and advice as we invest in our communities.

I look forward to working with you for the next four years and beyond.

Thank you for listeing.

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