We knew it would come to this. The LA Times has the rundown:
A copy of the fiscal blueprint obtained by The Times shows that the deficit would be wiped out with $15 billion in cuts; $14.4 billion in new and increased taxes on sales, vehicles, gasoline and personal income; $12 billion in borrowing against future profits from the lottery; short-term loans; and various accounting maneuvers. Some of the cuts and borrowing could ultimately be offset by billions of dollars in federal aid that California would receive in the economic stimulus package that passed the U.S. Senate this week and is awaiting final approval in Congress.The new taxes amount to about $500 for each man, woman, and child in the state, and will more than cancel out the effects of any tax relief included in the federal stimulus bill. In addition, the Governator has threatened to fire 20,000 state workers if the budget isn't passed by Friday. (This is an idle threat, since the Republicans are likely to oppose new taxes and applaud a reduction in the state workforce.)
Even so, the cuts to state services would be deep and long-lasting.
Schools and community colleges, which account for nearly half of all state spending, would lose nearly $8 billion. Part of that would probably be backfilled by Washington, though not necessarily enough for some districts to avoid cutting programs and laying off employees before the school year is over.
State colleges and universities, where tuition has been steadily rising for years, would lose $890 million.
Scheduled cost-of-living increases for welfare recipients would be canceled, and mental health and early childhood education programs created by voter-approved ballot initiatives would be cut by more than $830 million. The state would cut spending on local public transit by $459 million.
Vehicle license fees would nearly double, going from the current rate of 0.65% to 1.15% of the value of a car or truck. The sales tax would increase by 1 cent, raising the rate in Los Angeles County to 9.75%. Gasoline taxes would increase by 12 cents a gallon. And Californians would pay a new surcharge on their personal income taxes, amounting to 2.5% of their total tax bills.
The next couple of days should be an interesting!
Edit: He forgot to say the magic word: