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California Stimulus Payment Won’t Eliminate Tax Increases

Sacramento, CA — The Associated Press reports that California won’t get enough federal stimulus money to avoid higher personal income taxes and deeper social service cuts.

State lawmakers and the Governor made $2.7 billion in tax increases and spending cuts contingent on how much money comes in from Washington, DC.

Governor Arnold Schwarzenegger’s Finance Director Mike Genest says that the state will fall $2 billion dollars short of the amount needed to stop higher taxes and more cuts from happening this year.

The state is set to receive around $8 billion from the Stimulus Package.

Written by bjhansen@mlode.com