Budget Revision Expected This Week

The May Revision, when the Governor releases his updated plan for spending in the next year, is expected to come out this week, probably Friday. With a projected $18.6 billion shortfall, it can’t possibly be good. The Governor has said he won’t use new taxes to close to budget gap, but programs have already been cut so drastically that there seems to be little left to cut. A proposal released by the Democrats this week included imposing a 10 percent severance tax on oil production in the state, repealing corporate-tax breaks approved last year to spur job growth and assessing commercial property taxes differently—but would still only slash about $2.9 billion per year.

We won’t know for sure what’s going on the chopping block in the May Revise until it comes out, but we know it won’t be pretty. And we know that we’re going to have to gather together to make a strong statement in protest of cuts that hurt children and families. I hope you’ll join us.

http://www.businessweek.com/news/2010-05-11/schwarzenegger-preps-terrible-cuts-to-close-deficit-update1-.html

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