Water Debate
On Tuesday, the Assembly Water, Parks and Wildlife Committee joined with the Senate Natural Resources and Water Committee to take testimony on a broad spectrum of issues relating to a proposed five bill package addressing Delta restoration and water supplies. The six hour hearing was organized around eight panels of legislators and stakeholders totaling 25 participants. The hearing represented the first step by policy-makers to find legislative solutions for achieving the co-equal goals of water supply reliability and ecosystem restoration before adjournment on September 11. Every conceivable stakeholder interest including: urban, industrial, agricultural, environmental, wildlife, water districts, local governments, fisheries, recreationalists and Indians were represented on the panels. Given the diversity of testimony, the only common thread of agreement was the recognition that
California has serious problems relating to the restoration of the Sacramento-San Joaquin Delta and assuring the availability of future water supplies. Beyond that, longstanding disagreements over cost, infrastructure, ecosystem protection, Delta bypass, levee protection, conservation, water rights, governance, fisheries and cost allocation remain deeply entrenched with no apparent sign of compromise.
As this week drew to a close, the five bills supported by Democratic leadership only addressed issues relating to Delta governance and water conservation. Governor Schwarzenegger countered by declaring he wouldn’t sign any comprehensive water package “if it fails to include a water infrastructure bond that expands our water storage capacity – both surface storage and ground water – funds habitat restoration, water quality and conservation.” Water will be a major focus of debate over the next three weeks. But, given lawmakers’ awful track record on solving the state’s fiscal problems, it’s difficult to believe that a comprehensive water solution will be crafted anytime soon.
Estate Tax
Congressman Mike Thompson introduced HR 3524, The Family Farm Preservation Act, which would defer estate taxes from farms and ranches as long as they remain in production agriculture. Congressional Leadership is poised to make a permanent change to estate taxes before it adjourns in 2009, as part of a tax extenders package expected to be taken up this Fall. It is likely that the exemption level will remain the same as 2009 (at $3.5 million per person), but the tax rate beyond that is currently being debated. This legislation would exempt farmland and assets so long as the business remains in agriculture and stays within the family. This bill improves upon already existing language in the tax code, broadening the definition of "family farm" and allowing land that is leased for agricultural purposes to be included in this program.
It also allows for farms and ranches already under conservation easements to be defer the taxes as well. Ag Council worked closely with CA Farm Bureau, CA Cattlemens, CA Association of Winegrape Growers & Western Growers to draft and provide input on this language. As it currently stands, full repeal of the estate tax will be granted in 2010, but in 2011, the tax will be reinstated as though nothing ever happened, at the $1 million per person exemption level and 55% tax rate.
|
