In view of the results of the recent election period, there will be a
number of changes to the state and national government. One major issue is that California will have to contend with the $25.4-billion deficit in the state budget (a number well over previous estimations).
There are a number of issues that make dealing with this problem difficult for the incoming administration: the fact that the $8 billion dollars that came from the temporary sales, car, and income taxes will soon be nonexistent; the fact that conservatives will be very reluctant to vote in favor of taxes and state spending; and the fact that voters approved constraints on “legislators’ ability to assess fees on business and to take funds from local governments” (which amounted to $800 million this year). The situation is difficult, but a plus to California’s budget woes is that now, the Legislature (under Democratic control) only needs a majority to approve budgets as opposed to a two-thirds vote. Hopefully, this means the budget process is more efficient. Tax increases, however, still require a two-thirds vote.
Read the full story:http://www.latimes.com/news/local/la-me-state-budget-20101111,0,90781.story