(May 15, 2007) The revised budget plan released yesterday by Governor Arnold Schwarzenegger demonstrates a continued commitment to addressing California’s budget problems by increasing jobs and tax revenue through economic growth, not by raising taxes, said California Chamber of Commerce President Allan Zaremberg.

“For years, many in the State Capitol have said the only way for California to solve its budget problems is to raise taxes. With the release of his latest state budget, Governor Schwarzenegger continues to prove them wrong,” said Zaremberg. “Knowing that raising taxes harms our economy, Governor Schwarzenegger has focused on an agenda to improve economic growth and job creation to produce more revenues for our state. With 850,000 new jobs and billions of dollars in additional tax revenues in California since the Governor took office, it is clear this approach works. “

The Governor's May budget revision invests in California's future by paying down $3.1 billion in bond debt. As a result of this aggressive Economic Recovery Bonds repayment schedule, these bonds will be fully retired 14 years ahead of schedule. Governor Schwarzenegger has reduced California's projected deficit by more than $15 billion through policies that keep California’s economy strong. The Governor lowered the state’s deficit to $1.4 billion. When the Governor took office, the state's projected deficit for this year was $16.5 billion.

“Governor Schwarzenegger’s revised budget is fiscally responsible, funding important priorities such as education, health care and public safety, while continuing to repay debt ahead of schedule to address our ongoing deficit. The Governor has accomplished this without raising taxes and while maintaining a prudent reserve of more than $2 billion,” Zaremberg said.

Staff Contact: Dominic DiMare