Davis Will Release Budget Today
Governor Davis is set to release his revised May budget today.
Capitol sources say Davis will propose solving California´s budget crisis through a combination of new taxes, program cuts and borrowing. The budget calls for a much-anticipated increase in the car tax as well as a half-cent increase in the state sales tax.
The new budget plan, expected to total about $100 billion, is also expected to include billions of dollars in service cuts to eliminate a cash shortfall estimated to grow to $35 billion over the next 15 months.