Today is June 16th. The California budget still hasn’t passed.
Of course, this isn’t a surprise. Democrats in the Legislature are looking at tax increases. Specifically, an oil extraction tax and an increase in the tobacco tax.
Wait, Russ, wasn’t there a measure on an oil extraction tax just a couple of years ago? And didn’t it fail?
Sure, but that hasn’t stopped Democrats from proposing the same tax increases over and over.
But Russ, hasn’t Governor Schwarzenegger vowed to veto any new tax increases? And aren’t Republicans united in vowing to not pass any new taxes?
Well, yes. But Democrats figure that Republicans that have been united in the past have seen that united stand falter. Furthermore, the Democrats largest sponsor—organizer labor (unions)—adamantly oppose the current spending cuts.
Given all of this there’s no chance of a budget deal in the next few days. My expectation is that California government will screech to a halt sometime in July.