FROM John Howard
The State Budget: Balanced or Not? As a share of the state's economy, Governor Brown says, the $86 billion state budget he signed today is lower than any since 1973. There are massive cuts in core services. But Republicans refused to extend tax increases, and the deficit still required $12 billion in new revenues to be "balanced," as the constitution requires. Four billion of that is based on projections that wealthy taxpayers are doing better than anybody expected. Still more comes from so-called "use" taxes the state hopes to collect on Internet sales from companies like Amazon. Currently, those taxes depend on consumers, few of whom ever report online purchases. Another device is dismantling local redevelopment agencies and taking their money, but those agencies claim that's illegal because of Proposition 22 , approved by the voters last November. Will any of that money really materialize?
Stimulus Could Trigger More State Taxes, Spending Cuts In May, Californians will be asked to approve six ballot measures confirming $42 billion in spending cuts and new taxes that made up the compromise that was worked out in Sacramento last month. But taxes could be higher and spending cuts deeper if the state doesn’t get $10 billion in federal stimulus money. John Howard, managing editor of Capitol Weekly , has more.
The Trump agenda: where's the beef? President Trump says big things are happening. After celebrating a House bill on health care, he doesn’t yet have Senate agreement. With James Comey’s public testimony scheduled tomorrow, the President today tweeted his selection of a new FBI Director. Is the Chief Executive all style and no substance? Later, terror attacks in Iran and conflicting claims about who’s behind them.
Is the threat from Russia missing from the Russia meddling probe? There's much being made about the Trump administration's possible ties with Russia. But the bottom line is Russia's effort to influence American democracy. Do the President and his aides care enough to take action before voters go back to the polls?