[John Jorsett]

I'll be astounded by any substantial cuts in state budget items. I'm expecting the Davis budget, announced tomorrow, to be mostly borrowing, higher taxes, 'fees', and wishful revenue projections that won't be proved wrong until after the election. And it isn't receiving any press, but the state has unleashed CAL-OSHA inspectors on small businesses, finding minor infractions and levying major fines for them (example: inproper strapping of CO2 bottles at a restaurant; fine: $8000). I guess the small guys who can't afford to fight are the easier targets.

[Robert357]

I guess, I see it different but we will know shortly. If Davis and the legislature get too creative, I think that Wall Street will not lend them the money that the State despirately needs. The rating agencies have already said that they don't see how the Budget (and this is when it was forecast to be about $12 to 14 billion) could be balanced without significant and broad tax increases and budget cuts. I think the factor that may well be beyond the Democratic spin-meisters control is Wall Street and the need to impress Wall Street with fiscal responsibility in order to get billions in loans.

[Baytoh]

I'll be astounded by any substantial cuts in state budget items. I'm expecting the Davis budget, announced tomorrow, to be mostly borrowing, higher taxes, 'fees', and wishful revenue projections that won't be proved wrong until after the election

The budget deficit is now projected to be at least $20b. It will be interesting to see how he wiggles out of this, since the budget is supposed to be balanced in theory every year. Like you, I expect much higher taxes next year.