State Budget Takes its toll on Lawmakers

It looks as though the state budget is finally taking its toll on California lawmakers.

As California sinks further into the financial abyss, lawmakers have attempted for months to reach a $26 billion budget compromise. Not only does this lack of resolution have the Capitol community perplexed and bewildered, but it seems to have tempers flying high, as witnessed by what happened in the Senate Judiciary Committee on Monday between democratic committee members and Assemblyman Mendoza (D-Norwalk) while presenting his AB 377.

Exit Note: Even if lawmakers arrives at a compromised budget fix in the next few days, the economic outlook for California remains bleak. Consider, for example, the new dark, but perhaps realistic, projection by University of California, Santa Barbara,economists. The UC Santa Barbara forecast has California‘s unemployment rate, now over 10 percent, nearing 14 percent by next year, which means another half-million workers would join the jobless ranks. California has a baseline general fund budget of about $110 billion a year. Revenues, without the recently enacted tax increases, are at least $25 billion less. Even the tax increases will erase only about $10 billion of that annual shortfall.

Hat tip courtesy of Champagne Politics

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