Lawmakers end budget impasse

September 16, 2008 |
Valor

Jim Sanders a reporter with the Sacramento Bee, indicated California lawmakers approved a budget deal early this morning. The budget is likely to be vetoed by Gov. Arnold Schwarzenegger and it “borrows billions from taxpayers and fails to prevent future financial trouble.”

A key element of the deal would increase by 10 percent the amount of income taxes withheld from workers, and from taxpayers who earn income from investments.
Much of the $15.2 billion budget shortfall would be bridged by advancing revenues to be collected in future years, shifting or borrowing money from other state funds and employing accounting maneuvers. The plan would generate immediate revenue but leave gaping holes in future budgets.
Gov. Arnold Schwarzenegger sent a letter to the four legislative leaders that he could support the spending plan — but only if his three “rainy day” fund demands were met.

For more information on the budget, read: