budget clears legislature/ compromises

One of the biggest things that the senators agreed on is a budget that raises taxes, borrows from the future, and basically leaving everyone in the state a little less poorer in some way. Schwarzenegger tried to state the issues that we are having in our state, but he didnt get majority vote for it to be able to be passed onto Legislature. The budget bill contains 15 billion in spending cuts, 12.8 billion in temporary tax increases, 11.4 billion in the future, and the making of a 1 billion reserve fund. The budget bills feature billions of dollars in spending cuts for schools, healthcare will be dropped, and they greatly reduce the dependent credit that Californians may claim on their income taxes. In addition to this, they also added an increase of the state sales tax by 1%, and they also doubled the vehicle license fee to 1.5%. The budget is relying also on the federal stimulus dollars to get through the year. This new set of taxes is supposed to last for the next two years, but, if needed it could be extended for another 2 years.