CA State Budget Approved

CA State Capitol

The Associated Press broken down the details of the state budget bill at Fox40 News.  It’s too long to list the details here, so check out Fox40.  There are a lot of cuts on education, programs, and services.  For the everyday consumer, this is how the state will raise revenue.

Here are the specific taxes:

• Increases the state sales tax by 1 cent on the dollar, generating $5.8 billion through the next fiscal year.
• Raises the fee for licensing vehicles to 1.15 percent of market value, up from the current .65 percent. The move is projected to generate $1.5 billion. About $602 million of that would be dedicated to local law enforcement.
• Raises the state personal income tax rate by 0.25 percent, generating $3.7 billion in the next fiscal year. If the state receives more than expected from the federal government, the increase in the rate would be reduced to 0.125 percent.
• Reduces the amount taxpayers can claim on a dependent care credit to the federal level of $100 instead of $300, saving $1.4 billion.

It’s not as bad as I thought it would be.   I probably won’t feel the effects of the rest of the budget cuts until another year or two.  Believe me, I can wait.

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