by Bill McBride on 5/12/2012 06:31:00 PM
Saturday, May 12, 2012
From the LA Times: California deficit has soared to $16 billion, Gov. Jerry Brown says
Gov. Jerry Brown announced on Saturday that the state's deficit has ballooned to $16 billion, a huge increase over his $9.2-billion estimate in January.In addition to more budget cuts, Governor Brown is asking for a temporary 3% income tax hike for the highest income bracket, and an increase in the state sales tax (but still below a year ago).
The bigger deficit is a significant setback for California, which has struggled to turn the page on a devastating budget crisis. Brown, who announced the deficit on YouTube, is expected to outline his full budget proposal on Monday in Sacramento.
"This means we will have to go much further, and make cuts far greater, than I asked for at the beginning of the year," Brown said in the video.
In the aggregate, it appears state and local cuts might end mid-year, but some states - like California - will see further budget cuts.
• Summary for Week Ending May 11th
• Schedule for Week of May 13th
Posted by Bill McBride on 5/12/2012 06:31:00 PM