New California Budget Passed, then Vetoed


On Wednesday, the California Legislature passed the 2011/2012 budget with some spending cuts, and a few tax changes.  The budget retained many of the recent manipulations and smoke and mirrors that have become a standard tool for the lawmakers to avoid actually dealing with the obvious budget problems  they are facing. 

The tax-related provisions included:

  • 0.25% sales tax increase (to fund local districts);
  • $12 increase in the DMV fee; and
  • Requirement that online sellers in California collect sales and use tax on items sold over the Internet. Most notably this will impact sales on Amazon,, and eBay.

The very next day, the Governor vetoed the budget stating "Unfortunately, the budget I have received is not a balanced solution. It continues big deficits for years to come and adds billions of dollars of new debt. It also contains legally questionable maneuvers, costly borrowing and unrealistic savings."

Well, at least the legislature met their requirement to send a budget to the Governor or face not getting paid.


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