Details of Gov. Arnold Schwarzenegger’s proposal to close a state budget deficit estimated at $11.2 billion through the fiscal year that ends June 30. The plan is being considered by lawmakers during a special legislative session that will last through the month.

  TAX INCREASES

— Total: $4.7 billion.

— Raise the state sales tax by 1.5 percentage points — or a penny and a half on the dollar — for three years. That will generate $3.5 billion in the current fiscal year. The state currently collects 7.25 percent in sales tax, with 1 percent of that automatically sent back to local governments. Many local entities tack on their own increases, bringing the sales tax to more than 8 percent in many parts of the state. The city of South Gate’s sales-tax rate is currently the highest in California at 9.25 percent.

— Broaden the sales tax beginning Jan. 1 to include more services such as vehicle repairs, appliance and furniture repairs, veterinarian services and greens fees for playing golf. Starting March 1, sales tax will be charged on tickets to amusement parks and sporting events. Democrats have sought to apply the sales tax to a range of services, such as automobile repair, entertainment and personal services that include haircuts and dry cleaning. California could generate as much as $10 billion if it adopted policies similar to those in New York, Texas and Florida, wrote Board of Equalization member Judy Chu in a report earlier this year. A handful of states charge sales tax for financial and legal services.

— Increase the Department of Motor Vehicle’s annual fee for registering vehicles in California to $42 from $30. The state also charges a separate vehicle licensing fee and collects both at the same time. Schwarzenegger, who cut the licensing fee shortly after taking office, did not change those rates, which is based on the value of a car.

— Impose a 9.9 percent tax on each barrel of oil extracted from California, a tax other oil-producing states already levy. The move is estimated to generate $528 million this fiscal year.

— Raise an excise tax collected on all beer, wine and liquor by 5 cents per drink on distributors and wholesalers. It will raise $293 million this fiscal year. The move could cost consumers more for alcohol.

  ECONOMIC STIMULUS:

— Require lenders to modify loans for troubled homeowners, cutting monthly payments by up to 30 percent. The governor’s plan also calls for a 90-day moratorium for homeowners facing foreclosure.

— Accelerate spending on public works projects, including $204 million from water bonds, more than $1.5 billion for transportation and $106 million for hospital construction. Suspend environmental review requirements for those projects.

  SPENDING CUTS:

— Total: $4.4 billion.

— Reduce K-12 education funding by $2.5 billion and funding for the University of California and California State University systems by $132 million.

— Cut the state’s welfare-to-work program, known as CalWORKS, by 10 percent beginning in the spring and reduce a supplemental grant for low-income seniors and the disabled by $348.9 million. Cease optional low-income health benefits for adults under the state’s Medi-Cal program.

— Require state employees to take a one-day-a-month unpaid furlough and forego two of 13 paid holidays, Columbus Day and Lincoln’s Birthday (state workers would continue to enjoy Washington’s Birthday as a holiday).

— Rescue the state’s unemployment insurance fund by asking employers to pay more and tightening eligibility requirements, which would reduce payments to laid-off workers. With the state’s unemployment rate at 7.7 percent and likely growing, the fund is projected to be $2.4 billion in the red by the end of 2009. That would force the state to borrow from the federal government.

— Relax state labor laws dealing with meal and rest periods, overtime exemptions and work schedules.

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Source: California Department of Finance.

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On the Net:

www.dof.ca.gov