May 19, 2009
The outcome of today’s Special Election will help set the tone for upcoming state budget negotiations. Proposition 1A would keep the extra taxes passed earlier this year on the book for three extra years in exchange for limiting future state spending. Regardless of the outcome of the election taxing of additional services may be considered to raise revenue because of the state’s dire budget circumstances. There have also been discussions of attempting to get around the 2/3 vote requirement to raise taxes. So it may be a very very long summer in Sacramento.