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The Guv and the legislature are "fixing" a $26.3 billion deficit--but the deficit is over $30 billion. Courts have stopped February fixes valued at $3.5 billion, forcing the State to pay back that money cut from the budget. Yes, there will be appeals, and more money for attorneys will be wasted, and more interest put on the final payments. Plus, billions more of lawsuits we are going to lose are in the pipeline. Then you have the billions a Federal Judge wants to make criminals comfortable in prison.
Of course the tax increases had the affect everybody expected--the higher taxes lowered the revenues, causing a bigger deficit.
Then you have AB 32, the job killer, as long as that is in place, revenues will go down as unemployment rises.
And, the proposed budget "fix" has $11 billion in non existent cuts--so the moment the new budget is signed, we will have an $11 billion deficit.
That is why the budget deal is a waste of time--they are still kicking the can down the road.
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Of course the tax increases had the affect everybody expected--the higher taxes lowered the revenues, causing a bigger deficit.
Then you have AB 32, the job killer, as long as that is in place, revenues will go down as unemployment rises.
And, the proposed budget "fix" has $11 billion in non existent cuts--so the moment the new budget is signed, we will have an $11 billion deficit.
That is why the budget deal is a waste of time--they are still kicking the can down the road.
More...