Legislation has been shelved in California that would have granted cities, counties, and school districts new taxing authority, according to press reports.
The bill would have allowed local officials, with voter approval, to enact new sales and income taxes. It has already passed the Senate.
Senate President pro tempore Darrell Steinberg, D-Sacramento, told the Los Angeles Times he is holding up the measure in an effort to put together an alliance to push a statewide tax initiative next year.
Democratic leaders have discussed putting forward a tax measure to voters in an effort to structurally improve the state budget.
Lawmakers, relying on the Legislature’s Democratic majority, passed a budget at the end of June that depends on cuts plus $4 billion of future revenues to fill a $9.6 billion hole left in the spending plan.
If the $4 billion evaporates, cuts to education and other services will be triggered later in the fiscal year to bring the budget back toward balance.
Gov. Jerry Brown had been unable to get Republican backing for a key part of his earlier budget proposal that would have set a special election to extend temporary tax hikes. However, that required a two-thirds majority vote and GOP support.