Business groups from around California are floating a compromise to the state’s budget mess. They’re calling it a “Workout Plan” – which, they say, is what the business world calls an agreement between a company struggling with its finances and its lender. The lender agrees to modify the terms of the loan – but only if the company fixes the issues that created the original problem.
The business groups say Governor Jerry Brown and state lawmakers should apply that same concept to the budget: extend the temporary taxes set to expire in July, but only in exchange for long-term changes like a spending cap and pension and regulatory overhauls. Under the proposal, Californians would get to vote up-or-down on the entire package.
Among those signing the letter are business groups in Los Angeles, Orange County, Fresno, Sacramento and the Bay Area.