Earlier this week Governor Schwarzenegger told an audience in Silicon Valley, “There’s a good shot that we will have a budget in the next two to three weeks.” The Democrats are proposing an increase in the income tax (and a smaller decrease in sales taxes) to close the $19 billion deficit. Republicans in the legislature are opposed. There must be Republican support in order for a budget to pass the legislature (it takes a two-thirds vote to pass the budget). In fact, Republican legislative leaders consider the current proposal a non-starter.
There have been no budget talks and none are scheduled.
I can only conclude that the Governor is using extremely wishful thinking. As of now, there’s no sign that the budget stalemate will end any time soon. Indeed, October is far more likely than August as to the month the stalemate ends.
Tags: 2010CalBudget