Small-Business Owners Could Fix California’s Budget Deficit, Says Controller

Two years ago, California wrote IOUs to pay its bills. Next month legislators must pass a balanced budget to keep California up and running.

“It won’t be easy,” said State Controller John Chiang. Chiang spent most of the day in the Coachella Valley talking with small-business owners about the state’s local economies.

“Our No. 1 obligation is to make sure it doesn’t crash like it almost did two years ago,” said Chiang.

There are many ideas in Sacramento on how to fix California’s $14 billion budget deficit. Legislators will decide in June.

“The governor has always said we need to live within our means. Small business is critical for recovery. It’s gonna start here in local economies,” said Chiang.

The state controller was in town to discuss ways small-business owners can finance new businesses and survive in a struggling economy.

Craig Dunham and his mother, Jean, used to own a gift shop in Rancho Mirage, but because of the economy, they closed it. They came to the controller’s small business seminar Friday to get help to reopen. “When it comes to the budget, some of the taxes we need to keep, but maybe we do have to cut some of the programs, they need to come together and combine the two thoughts.”

The Assembly Republican budget proposal wipes away the remaining $14 billion deficit without raising taxes, a stark contrast to Gov. Brown’s plan that extends temporary tax hikes on personal income, sales and car registration for five more years. Assembly Republican Minority Leader Connie Conway said, “We still believe we can get there without raising taxes. And we think the voters have been very clear that this is their desire.”

“We need to be balanced in our approach, mindful of the cuts we make. Cuts alone are not going to make it happen,” said state Assemblyman V. Manual Perez, D-Coachella.

Legislators must pass a balanced budget by June. Two years ago, California gave out IOUs because it couldn’t pay its bills. According to lawmakers, it is not expected to get that bad this year.