Thursday, February 19, 2009

Budget Crisis is Over, Long Live the Crisis!

Here are the key elements from the revised budget, from the LA Times:

• $14.8 billion in spending cuts

• $12.5 billion in tax increases

• $5.4 billion in borrowing

• $7.8 billion in federal stimulus funds

What's next:

Voters will be asked in May to approve restraints on government growth, borrowing against future state lottery revenues, cuts in mental health and early-childhood education programs. In June 2010, they will consider the open primary and restrictions on legislative pay hikes.

The governor may rescind the 20,000 layoff notices recently sent out.

Scheduled Friday furloughs will end, but state workers will be furloughed eight hours a month.

The state ultimately will resume paying all its bills, including tax refunds. But doing so could take weeks.

Stalled public-works projects could restart
Enjoy the moment, because at the rate tax revenue is falling, we'll be back here again in six months.


Anonymous said...

Was downtown today (Thurs) about 11:30.... very quiet except for the Sheriffs hanging around the jail corners and the swat team on standby a few blocks away.... must be where they keep Lance's bike.

Very strange as it wasn't any busier than a Furlough Friday.


Max said...

Everybody's at the capitol waiting for the governator. There's a ton of people in the park.

Anonymous said...

Lynch mob?

Max said...

Not until the tax bill comes.

patient renter said...

Not until the tax bill comes.

That whole income tax surcharge thing still blows me away. A tax on a tax!? Come on...

Unknown said...

A tax on a tax!?

Oh Christ I never thought of it that way. That's depressingly hilarious!

RC said...

california is in a rough spot...i can't see how california is going to get out of it.