But Republicans criticized the budget as unsustainable. Democrats praised the budget for avoiding painful cuts to health care and public education programs, two of the biggest areas of state spending.
“It’s something I know people can argue over whether it benefits California or not, but it is iconic and it creates jobs,” Senate President Pro Tempore Toni Atkins said.Ĭalifornia’s budget reflects the partisan divisions that permeate the country’s politics. Others said the improved tax credits are needed as California faces competition from other states seeking to lure TV and movie productions out of California, which has long been synonymous with the glamor of Hollywood. “It’s real hard to justify doing this when we’re not doing that for a lot of people who are struggling in California,” Republican Assembly Leader James Gallagher said. Both houses approved the $310.8 billion spending plan that covers the nearly $32 billion budget deficit without raiding the state's saving account.
Brian Dahle, R-Bieber, works at his desk as legislators work on the state budget at the Capitol in Sacramento, Calif., Tuesday, June 27, 2023. That means if a movie studio has credits that are worth more than what it owes in taxes, the state will pay the studio the difference in cash. The big change is that those tax credits will be refundable. Those credits will reduce state revenues by up to $330 million per year. Newsom has said he will sign it into law.ĭespite the deficit, lawmakers agreed to extend tax credits for movie and television productions that film in the state. The plan would borrow $6.1 billion and would set aside $37.8 billion in reserves, the most ever. The budget approved by lawmakers covers that deficit by cutting some spending - about $8 billion - while delaying other spending and shifting some expenses to other funds. Gavin Newsom estimated the state’s spending would exceed revenues by over $30 billion. Last month, the administration of Democratic Gov. California gets most of its revenue from taxes paid by the wealthy, making it more vulnerable to changes in the economy than other states.
The nation’s most populous state has had combined budget surpluses of well over $100 billion in the past few years, enabling the Democrats in charge to greatly expand government.īut this year, revenues slowed as inflation soared and the stock market struggled. (AP) - California lawmakers approved a $310.8 billion budget on Tuesday that closes a nearly $32 billion budget deficit while also extending a lucrative tax break for the state’s iconic film and television industry.
0 kommentar(er)
