budget

This budget is going to effect everyone. It's a $41 billion gap that they are trying to close up. It took them 5 days of nonstop negotiating, and finally they came to an agreement on a budget that raises taxes, cuts into services and borrows far into the future, leaving almost every person in the state effected in some way. At first the plan failed to gain the two-thirds majority approval required by California state law to pass through the legislature.
Finally in the end, they made a few compromises to satisfy the needs of the republicans.The budget contains $15 billion in spending cuts, $12.8 billion in temporary tax increases, $11.4 billion in new borrowing, and the creation of a $1 billion reserve fund. The intention is that if the state receives anticipated federal funds, the borrowing will be reduced by half, some of the tax increases will be trimmed and some cut spending would be restored.
The new taxes are set for 2 years for now, but they can extend that to four years at anytime.
so all in all, this does effect us because of the taxes we will have to pay in the next few years.