Saturday, May 12, 2012

California Keeps Spain and Greece Company in the Default Zone

No, they haven't defaulted, but they will probably ask for a bailout... California deficit has soared to $16 billion, Gov. Jerry Brown says - In January it was supposed to be $9 billion. Opps. They missed it by 56% and it is only May.
Brown has said there will be even deeper cuts, mostly to public education, if voters do not improve tax hikes in November. He is seeking a quarter-cent increase in the state sales tax for four years and a seven-year hike on incomes of $250,000 or more that will range from 1 to 3 percentage points. He says the measure would raise $9 billion in the upcoming budget year.
Cuts to education (before you get crazy, remember the number of non-teachers in that mix) but no mention of cuts to pensions (current or future) asking folks to pay more for health care (higher deductibles?) or anything that might scare the unions. Though that will come eventually. (All union contacts were re-upped until July of next year. There were important VOTES, and all those union votes were important!)

Taxes of course, to go with the cuts, but I think they will find even more people leaving. And they are leaving.

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