2002 - 2003 TimelineSelect a month to view the timeline for this issue:
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Budget & Economy
Aug 12th Governor Davis said he supports a plan to reverse the car-fee hike. More Info
Aug 2nd Governor Davis signed 'compromise budget'. More Info

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Overview

Governor Davis said he supports a plan to reverse the car-fee hike.

Davis said he supports a proposal by Assembly Democrats to reverse the vehicle license fee and increase personal income taxes and cigarette taxes. The vehicle license fee is scheduled to go into effect on Oct. 1st.

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Overview

On August 2nd, Gov. Davis signed the 2003-2004 State Budget.

"Today's compromise budget offers no reason for celebration," Governor Davis said. "The Republican line in the sand closed the door of opportunity to many deserving students at our colleges and universities. That is wrong, and it is bad policy. Nevertheless, I'm signing this budget because the price of not signing is too high."

The following are some budget highlights:

  • $10.7 billion in bonds to be paid off over the next five years
  • $7.9 billion shortfall for 2004-2005
  • Tripling of the car tax, effective October 1st
  • No new taxes beyond the vehicle license fee hike
  • Significant cuts to UC and CSU
  • Spared education from the deepest cuts
  • Protected children's health coverage
  • Significant cuts to environmental programs
  • State employee layoffs