California remains in financial trouble. The state faces a $21 billion deficit. Meanwhile, the economic news doesn’t appear particularly good.
First, a judge in Alameda County (Oakland) rejected some of the furloughs implemented by Governor Schwarzenegger. The ruling impacts about 40,000 state employees out of over 200,000 impacted by the furloughs. California will appeal the ruling; there is a strong likelihood the ruling will be stayed until the appeal is heard.
Next, Governor Schwarzenegger was among many state governors noting that the health care proposals would add to California’s troubles. The Governor told Nancy Pelosi (D-CA) that the measure, if passed, would add $3 to $4 billion to the state’s deficit. Of course, given that the majority of Americans are opposed to the measure it will likely be passed by Congress in the next few weeks.
Finally, the Governor and legislative leaders will lobby the Obama Administration for aid. They’ll be looking for either money given directly to the government, or the ability to not match federal funds for certain programs.
There’s no chance of tax increases passing. Has California finally reached the point where the clock strikes midnight and the fiscal reality that you can’t spend more than you bring in occurs? Or will we see lots more budget gimmicks in 2010? After all, we’ll be using a 30%-40%-0%-30% for estimated payments for California income taxes in 2010. We can always go to 30%-69%-0%-1% for 2011….
Tags: 2010CalBudget
Isn’t Cali suppose to give away a credit for every employee that was hired in 2009 above the amount employeed in 2008? Ummm nice for people who increased their staff…but more money to spend from a coffer that is already empty.