08-21-07 by simpson
Remember the all night session when the California Assembly rammed through a budget deal? The accompanying package included SB 98, a tax-break package that would have benefited Chevron.
It’s took 52 days of bluff and bluster, but Tuesday the Republicans finally agreed to a budget deal. True to his word Senate leader Don Perata refused to take up the Assembly’s tax-break bill.
It won’t be part of the budget deal.
Perata said the bill, which would have cost the state an estimated $850 million in revenue, was outrageous given the state’s finances. What it would have done is allow companies to use a different and beneficial formula to calculate the portion of their worldwide income subject to California taxes.
Though not named in the bill, one of the clear beneficiaries was Chevron. The bill was pushed through the Assembly by Speaker Fabian Núñez in the wee morning hours without a hearing.
At the time the Assembly passed the tax-break I remembered the spring junket to South America that included Speaker. The Chevron-backed California Foundation on the Environment and the Economy, footed the bill including a stay at Rio’s ritzy Copacabana Hotel. And then there is the $50,000 donation this year by Chevron to the California Democratic Party that appears to be tied personally to Núñez. The April 5 contribution was reported by Chevron, in an atypical manner, as designated for “Assembly Democrats.” Sources within the Democratic party confirm that these are funds solicited in conjunction with the “Speakers Cup” fundraising event at Pebble Beach, which Núñez will dispense.
There’s certain to be another rush of bills as the Legislature adjourns in a few weeks. With Chevron casting a pall over the Assembly, I’m glad Sen. Perata has kept his promise so far. I hope he continues his tough stance the next time the midnight oil burns.