Event Coverage

Sen. Leland Yee: Expect Deep Budget Cuts, Nothing is Sacred

“The state of California is literally in bankruptcy and facing a $14 billion dollar shortfall, which is projected to hit $15 billion soon,” State Senator Leland Yee (District 8 - San Francisco/San Mateo) told SAMCAR members at Tuesday’s Combined Tour Meeting.

He said to expect deep cuts this year and noted, “This time, there are no sacred cows.”

Senator Yee explained the state no longer has a sufficient amount of reserves to take care of its bills. The state’s financial problems have been exacerbated by the subprime problem, which is creating a tremendous stress on the Legislature.

“We did not anticipate the backlash from the subprime mortgage problem, which has resulted in several months of decreasing sales tax revenue,” he explained.

The state senator said consumers’ discretionary dollars have dwindled, as their money is now being devoted to pay their mortgages. This, in turn, results in decreased purchases, which has resulted in less revenue for the state. As a consequence, the state now has to take “extraordinary measures” and mandate cuts within the current fiscal year. The matter can’t wait, he said.

“These are difficult times for all of us,” said Mr. Yee. “We need to take care of the problem right now and then work on the 2008-09FY budget.”

Mr. Yee told SAMCAR members to expect services to be cut dramatically, even in areas that traditionally are guarded from cuts – education, property values, health care, social services, parks – all are on the table for discussion.

Mr. Yee said the state is also looking at ways to increase revenue within the budget through a number of initiatives, such as taxes, but he believes it is unlikely such measures would pass the Legislature, since Republicans oppose taxes. It is more likely such proposals would be decided by voters in the November ballot.

Another area of great concern to legislators is the subprime mortgage arena, said Mr. Yee, referring to the economic stimulus package, which was finally passed by the Senate yesterday.

Mr. Yee told SAMCAR members in view of the budget cuts, it is important for them to let their representatives know their concerns.

“It is important you engage and let legislators know your concerns,” said Mr. Yee. “This is a serious, serious situation. In the past, we could shift funds and close the books without hurting too many people. There are no tricks anymore. It is now high time to make those cuts.”
 
Mr. Yee assured Realtors he and his colleagues in Sacramento will try to work on the best budget. “We will try to look at those individuals most vulnerable and provide a safety net for them.”

But he again emphasized, Realtors can be a critical instrument in helping legislators identify the state’s public policy and he invited them to be a part of the process by voicing their concerns and interests to their representatives. .

“Come and let us know, so we can do a budget we can be proud of,” said Mr. Yee.

After serving four years in the California State Assembly, Mr. Yee was elected to the State Senate in November 2006, garnering over 78 percent of the vote – the largest percentage for any Democratic candidate with a Republican challenger. Mr. Yee is the first Chinese American ever elected to the California State Senate and first Asian American elected to the Legislature’s upper house in 40 years. He is also a member of the Senate Democratic Leadership as the Assistant President Pro Tem.

The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in San Mateo County.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

For further information, please contact Julie Ziemelis, Director of Public Affairs, e-mail , or phone (650) 696-8214.

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