Monday, April 27, 2009

California Budget Deal in Big Trouble

By Robert Gammon
Mon, Apr 27, 2009 at 6:37 AM

The state Democratic Party has refused to endorse Proposition 1A, the statewide measure that is the linchpin of California's budget deal. According to the Chron, Prop. 1A failed to get the necessary 60 percent of the vote at the Democratic state party convention yesterday, meaning the party will remain neutral on the issue. The state Republican Party opposes Prop. 1A. The Dems' vote spells big trouble for the state's budget deal brokered by Dem legislators, the governor, and a handful of GOP state senators after months of negotiations. If the proposition fails in next month's special election, then the state will face another multi-billion-dollar deficit. Many Dems oppose Prop. 1A, because it institutes state spending caps that will be difficult to repeal when the economy rebounds. The measure also increases the state's rainy day fund and triggers $16 billion in tax extensions.


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