Emergency Budget Intervention?

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(Sacramento, CA)
Tuesday, October 7, 2008

The new spending plan isn’t holding up well in this economic climate.  State Controller John Chiang says the state’s was already short more than one billion dollars as of the end of September.  Unemployment is up.  And state officials worry they’ll have trouble borrowing money from Wall Street to stay afloat.  The Governor and legislative leaders will discuss calling an emergency special session of the legislature to address the issues.  The two obvious choices are raise taxes or make more cuts.  Democratic Senate Leader Don Perata says it’s wise to have the discussion, but…

“I’m not confident that just going into a special session will solve anything”.

Perata says it’s unlikely a tax increase could be pushed through. Democrats tried that during the record budge impasse.  Republicans rejected it.  If a special session is called, it could happen within the next few weeks.