WSJ’s Finley: CA’s FInances Slightly Less Awful
From today’s Wall Street Journal Political Diary E-mail… California Finances Slightly Less Awful
Last week thousands of California teachers rallied to extend $12 billion in tax hikes, which they said would help prevent $4.7 billion in education cuts. Well, it turns out that schools won’t be whacked after all, even if the taxes aren’t extended.
Democratic Gov. Jerry Brown’s revised May budget projects that the state will collect $6.6 billion more in taxes over the next two years than his administration had projected in January. That’s based on tax collections this year that have exceeded earlier projections by $2 billion.
Thanks to the state’s Proposition 98, which mandates that at least 40% of general funds be appropriated for education, schools will get about $3 billion of the “windfall.” That’s $3 billion more than they got last year. Mr. Brown’s revised budget still assumes that income, sales and vehicle tax hikes that expire this year will be… Read More